Dangote in talks with Kenyan Gov’t to develop 1,000MW gas power plant

Dangote Industries is in talks with the Kenyan government to develop a 1,000MW liquefied natural gas power plant as part of its proposed refinery project in Lamu, Kenya.

The planned power facility is expected to be integrated into the refinery complex, creating a combined industrial and power hub in the coastal region.

According to persons with knowledge of the deal, the Kenyan government is negotiating with Dangote to increase the planned capacity of the power component to 1,000MW.

The plant is expected to use LNG supplied from Tanzania, with discussions considering either a pipeline connection or shipment of the gas by tankers to a receiving terminal at Lamu.

The proposed capacity would make the facility one of the largest gas-fired power projects in East Africa if completed.

The Kenyan government is seeking the larger capacity as it looks to address electricity supply gaps and diversify the country’s energy mix. The gas-fired plant would provide dispatchable power alongside Kenya’s growing wind and solar generation.

The project would also share infrastructure with the proposed refinery, potentially reducing costs and supporting industrial operations in the Lamu area.

However, the 1,000MW proposal is still subject to further negotiations. Its development will depend on agreements covering gas supply, financing, power purchases and environmental requirements.

The refinery project is anticipated to take-off at a groundbreaking ceremony on September 30.

The proposed Lamu refinery is part of Dangote’s wider expansion across Africa as the group seeks to build on its refining operations in Nigeria and increase its industrial footprint on the continent.

If completed, the power plant would add significantly to Kenya’s electricity generation capacity while creating a new cross-border gas supply link between Tanzania and Kenya.