Dangote Industries plans to develop a 1,000-megawatt liquefied natural gas (LNG) power plant in Lamu as part of its proposed oil refinery project, a move that could significantly expand Kenya’s electricity generation capacity.

🇰🇪 Breaking It Down

According to  The Africa Report , the Kenyan government is negotiating with Dangote Industries to increase the planned capacity of the power plant to 1,000MW, with the facility expected to provide a more stable source of electricity for industrial operations.

The proposed plant would use LNG supplied from Tanzania, with discussions expected to consider either a pipeline connection between the two countries or transportation of the gas by tankers to a receiving terminal at the Lamu site.

It would integrate power generation with the refinery, creating an energy and industrial hub in Lamu.

📌 What You Need to Know

The government is pushing for the larger capacity to address electricity shortages, diversify the energy mix, and potentially lower costs.

The proposed power plant would also provide a baseload source of electricity alongside Kenya’s growing wind and solar generation.

Its development, however, would depend on agreements on gas supply, financing, power purchases and environmental requirements.

Further, the development comes as Dangote prepares to launch the Lamu refinery project, with the groundbreaking ceremony scheduled for September 30.

The refinery is expected to serve East African markets, with President William Ruto’s economic adviser David Ndii estimating the region could provide over 600,000 barrels of crude oil daily: 350,000 from South Sudan, 250,000 from Uganda and 120,000 from Kenya.

Kenya has previously sought to diversify its electricity sources to reduce exposure to fluctuations in hydropower generation, particularly during periods of drought, and a large gas-fired plant could therefore provide an additional source of dispatchable power for industrial and other electricity needs.

📰 Source: Kenyans.co.ke