Dangote Industries, the largest conglomerate in West Africa, is planning a 1,000-megawatt liquefied natural gas power plant in Kenya as part of a proposed refinery project in Lamu, as the country looks to expand its electricity supply and reduce its dependence on weather-sensitive power sources.

The Kenyan government is in talks with Dangote Industries to increase the planned power capacity to 1,000 MW. The proposed expansion would support growing electricity demand while giving the refinery complex a dedicated source of power.

Gas supply could come from Tanzania

The project is expected to use LNG sourced from Tanzania, which has significant natural gas reserves. Gas could reach the Lamu facility through a pipeline or be transported by tankers to an LNG receiving terminal, depending on the outcome of negotiations and technical studies.

The arrangement could also deepen energy trade between Kenya and Tanzania by creating a more structured market for natural gas across the region.

Kenya has been seeking ways to diversify its electricity mix as droughts have affected hydropower generation. The country has also expanded wind and solar projects, but a gas-fired plant could provide a more consistent source of electricity when renewable generation falls.

The proposed power plant would form part of a larger industrial complex combining the refinery and power-generation facilities. Sharing infrastructure such as port facilities, storage and transmission connections could help reduce construction costs and improve the efficiency of the project.

Lamu project faces key decisions

The proposed refinery and power plant would be located within the wider Lamu Port-South Sudan-Ethiopia Transport corridor, a major infrastructure initiative designed to improve trade links between northern Kenya and neighboring countries.

At 1,000 MW, the proposed plant would rank among the largest gas-fired power facilities in East Africa. Its development, however, will depend on several outstanding issues, including the terms of the gas supply agreement, financing for the refinery and approval of the required environmental studies.

The next stage of discussions is expected to cover the power purchase agreement, gas supply arrangements and technical requirements for the expanded facility. A final investment decision would follow the completion of those discussions.

Dangote expands across Africa’s key industries

Dangote Industries operates across multiple African markets, with businesses spanning cement, sugar, fertilizer, energy, petrochemicals, packaging and port operations.

Aliko Dangote, the group’s founder and president, has built one of Africa’s largest privately controlled industrial businesses. His net worth was $35.5 billion, according to the Bloomberg Billionaires Index.

The proposed Dangote power project in Kenya could therefore become an important component of the group’s wider push into energy, while giving Kenya another potential source of large-scale electricity.