NAIROBI, Kenya — Dangote Industries is planning a 1,000-megawatt liquefied natural gas (LNG) power plant in Lamu as part of its proposed oil refinery project, potentially adding significantly to Kenya’s electricity generation capacity.
According to The Africa Report, the Kenyan government is negotiating with Dangote Industries to increase the planned capacity of the proposed power plant to 1,000MW.
The facility is expected to provide a more stable electricity supply for industrial operations while integrating power generation with the planned refinery and wider industrial development in Lamu.
LNG power plant to use Tanzanian gas
The proposed power plant would use LNG supplied from Tanzania, with discussions expected to consider different options for delivering the gas to Lamu.
One option would involve establishing a pipeline connection between Kenya and Tanzania.
Another possibility would be transporting LNG by tankers to a receiving terminal at the Lamu site.
The choice of supply infrastructure will depend on the outcome of technical and commercial discussions between the parties involved.
Government seeks bigger power capacity
The Kenyan government is pushing for the larger 1,000MW capacity as part of efforts to address electricity shortages, diversify the country’s energy mix and potentially reduce electricity costs.
The proposed facility would also provide a baseload source of electricity alongside Kenya’s growing wind and solar generation.
Integrating the power plant with the refinery could create an energy and industrial hub in Lamu, supporting large-scale industrial operations and related businesses.
The project could therefore combine refining, power generation and other industrial activities within the wider Lamu development.
Project faces financing and environmental hurdles
Despite the potential scale of the proposed plant, its development would depend on several agreements and approvals.
These include arrangements covering gas supply, project financing, electricity purchases and environmental requirements.
Technical negotiations would also need to determine how LNG would be transported from Tanzania and delivered to the proposed facility in Lamu.
The financing of the wider refinery project will also be critical to the development of associated infrastructure, including the proposed power plant.
Lamu refinery groundbreaking set for September 30
The proposed power plant comes as Dangote prepares to launch the Lamu oil refinery project, with the groundbreaking ceremony scheduled for September 30, 2026.
The refinery is expected to serve markets across East Africa.
President William Ruto’s economic adviser David Ndii has estimated that regional producers could provide more than 600,000 barrels of crude oil per day for the proposed refinery.
His estimates include approximately 350,000 barrels per day from South Sudan, 250,000 barrels from Uganda and 120,000 barrels from Kenya.
The availability of sufficient crude supplies will be an important factor in determining the refinery’s long-term viability.
