Dangote Industries plans to build a 1,000-megawatt liquefied natural gas (LNG) power plant in Lamu as part of its proposed oil refinery project. The development could substantially boost Kenya’s electricity generation capacity.
The Africa Report reports that the Kenyan government is currently negotiating with Dangote Industries to raise the planned power output to 1,000MW. The company expects the facility to deliver a steadier power supply to support industrial operations.
The proposed plant would rely on LNG supplied from Tanzania. Negotiations are expected to cover options such as building a pipeline link between the two countries or transporting the gas by tankers to a receiving terminal at the Lamu site.
Dangote also intends to link power generation directly with the refinery, creating an integrated energy and industrial hub in Lamu.
The government is seeking the larger capacity to tackle persistent electricity shortages, diversify the energy mix, and potentially reduce costs.
The proposed LNG plant would also provide a baseload power source alongside Kenya’s expanding wind and solar generation.
However, the project would hinge on the terms of gas supply, financing arrangements, power-purchase agreements, and compliance with environmental requirements.
The plan also comes as Dangote prepares to launch the Lamu refinery project, with a groundbreaking ceremony scheduled for September 30.
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