Nairobi seeks to double the proposed capacity as it looks to address electricity shortages and strengthen the country’s energy supply……
Dangote Industries is considering a 1,000-megawatt liquefied natural gas power plant in Kenya, as part of plans to establish a refinery and wider energy complex in Lamu.
The proposed power project is currently the subject of discussions between the Kenyan government and Dangote Industries, with authorities pushing for the capacity to be increased to 1,000MW.
According to media reports, the initial proposal was for a significantly smaller power facility, but Kenya is seeking a larger installation to help close electricity supply gaps, support industrial activity and potentially reduce energy costs.
The project would form part of a broader plan to combine refining and power generation infrastructure at the Lamu site, creating an integrated energy hub along Kenya’s coast.
The planned plant would run on LNG, providing a steady source of electricity to complement renewable sources such as wind and solar, whose output can fluctuate depending on weather conditions.
A key component of the proposal is the potential supply of natural gas from Tanzania, which has substantial offshore gas reserves.
The gas could reach the Lamu facility through either a cross-border pipeline or by being transported as LNG by tanker to a receiving terminal at the project site.
The proposed arrangement could establish a new energy corridor between Kenya and Tanzania while creating a structured market for cross-border gas trade.
Dangote Industries President, Aliko Dangote, has reportedly shown interest in expanding the group’s industrial presence in East Africa, following the scale of its refining operations in Nigeria.
For Kenya, the project comes amid efforts to diversify its electricity mix and reduce exposure to fluctuations in hydropower generation, particularly during periods of drought.
Locating the power plant alongside the proposed refinery could also allow the projects to share infrastructure such as port facilities and transmission networks, potentially lowering overall development costs.
The Lamu development is linked to the wider Lamu Port-South Sudan-Ethiopia Transport corridor, a major infrastructure initiative designed to improve connectivity in northern Kenya and deepen trade links with neighbouring countries.
If completed at the proposed 1,000MW capacity, the facility would rank among the largest gas-fired power projects in East Africa and could reshape regional energy flows.
However, several issues must still be resolved before the project can move forward.
These include reaching a gas purchase agreement between Kenya and Tanzania and securing financing for the wider refinery development.
Negotiations are also expected to address the proposed power purchase agreement, while environmental impact assessments will be required as part of the process for developing the larger power facility.
A final investment decision is expected after the Kenyan government and Dangote Industries complete ongoing technical discussions.
