Dangote Industries is set to deepen its footprint in East Africa with plans for a 1,000-megawatt liquefied natural gas (LNG) power plant in Kenya, as the company explores opportunities to integrate power generation with its proposed refinery project in Lamu. The development is expected to position the Nigerian industrial giant as a major player in Kenya’s energy sector while supporting the country’s efforts to address electricity supply challenges.
According to reports, the Kenyan government is currently negotiating with Dangote Industries to increase the proposed power plant’s capacity to 1,000MW, significantly above the initial plan. The larger facility is expected to help bridge domestic power shortages, improve energy reliability and reduce Kenya’s dependence on intermittent sources of electricity, particularly as demand from industries and businesses continues to grow.
The proposed plant would be powered by natural gas sourced from Tanzania, creating the possibility of a new cross-border energy corridor between the two East African nations. Gas could either be transported through a pipeline or shipped as LNG by tankers to a receiving terminal at the Lamu site. If completed, the arrangement could strengthen regional gas trade while providing Kenya with a more consistent source of electricity.
The power project is expected to form part of a broader energy hub in Lamu, taking advantage of infrastructure being developed around the proposed refinery and the Lamu Port-South Sudan-Ethiopia Transport corridor. By sharing infrastructure such as port facilities and transmission connections, Dangote and the Kenyan government could potentially reduce project costs while supporting industrial development in the coastal region.
However, the ambitious project still faces important hurdles, including the finalisation of a gas purchase agreement between Kenya and Tanzania, financing for the wider refinery project, power purchase arrangements and environmental assessments. A final investment decision is expected after technical discussions are concluded. If it moves forward, the 1,000MW facility could become one of East Africa’s largest gas-to-power projects and further expand Aliko Dangote’s industrial influence beyond Nigeria.
source: punch
