Dangote plans 1,000MW power plant in Kenya

Dangote Industries is planning a 1,000-megawatt liquefied natural gas power plant in Kenya as part of its proposed refinery project in Lamu.

According to Africa Report, the Kenyan government is currently in negotiations with Dangote Industries to double the planned capacity of the power plant to 1,000MW.

The expansion is aimed at bridging domestic electricity shortfalls and reducing Kenya’s reliance on intermittent power sources by tapping into natural gas reserves from Tanzania.

The proposed power plant is part of a broader strategy to integrate the refinery infrastructure with electricity generation, creating a combined energy hub in the coastal region of Lamu.

According to the report, initial plans for the power component were significantly smaller, but the Kenyan government is pushing for a larger installation to ensure industrial stability and lower energy costs for consumers.

President of Dangote Industries, Aliko Dangote, has reportedly expressed interest in expanding the company’s industrial footprint in East Africa following the scale of its refining operations in Nigeria.

The proposed facility would utilise LNG as fuel, providing a more stable baseload of electricity compared with the wind and solar projects currently expanding across the Kenyan grid.

Officials indicated that the project would rely on a steady supply of gas from Tanzania, where significant offshore reserves have been confirmed.

The logistics of the gas supply are expected to involve either a pipeline connection or the shipment of LNG by tankers to a receiving terminal at the Lamu site.

The cross-border arrangement is expected to create a regional energy corridor and provide a structured market for gas trade between the two countries.

Kenya’s Ministry of Energy had previously highlighted the need to diversify the country’s energy mix to reduce the impact of drought-induced drops in hydroelectric power generation.

By integrating the 1,000MW power plant into the Lamu refinery complex, the project could leverage shared infrastructure, including ports and transmission lines, potentially reducing capital expenditure.

The Lamu project is also part of the wider Lamu Port-South Sudan-Ethiopia Transport corridor intended to open up northern Kenya and strengthen connections with neighbouring countries.

The planned 1,000MW capacity would make the facility one of the largest gas-to-power installations in East Africa and could alter the region’s energy trade dynamics.

However, the project’s success would depend on the finalisation of a gas purchase agreement between Kenya and Tanzania, as well as financing for the refinery’s overall construction.

The next phase of negotiations is expected to focus on the terms of the power purchase agreement and environmental impact assessments required for the expanded plant capacity.

A final investment decision is expected after the conclusion of technical discussions between the Kenyan government and Dangote Industries.