Nigerian energy firm to build mega LPG Facility in Kenya

Kenya is negotiating with a subsidiary of Nigeria’s Sahara Group Ltd. to jointly construct a 30,000-ton facility for handling and storing liquefied petroleum gas (LPG), according to sources familiar with the matter.

The deal involves state-owned Kenya Pipeline Co. forming a joint venture with Asharami Synergy Plc to construct a common user terminal, which will be East Africa’s largest LPG storage and bottling facility, in the port city of Mombasa, according to a Bloomberg report.

The facility, expected to take 24 months to build, will be financed by Asharami, one of the sources said, adding that the deal is anticipated to be signed by the end of July.

Kenya Pipeline Co. will provide the land for the project, located on the port side.

The project is expected to help the East African nation achieve universal access to clean cooking energy by 2030.

President William Ruto has been advocating for Kenya to become a leader in green energy in Africa.

As part of this initiative, he aims to double the current per capita usage of LPG, which stands at 7kg.

Kenya Pipeline Managing Director, Joe Sang, said that the country is also actively working to bring a private sector company on board for the new cooking-gas facility.

In a bid to enhance the LPG supply and lower fuel prices, Kenya is also negotiating with Saudi Aramco.

The discussions are focused on acquiring a floating LPG barge.

Sang said Kenya’s efforts to improve its energy infrastructure and support the President’s green energy goals.