Dangote Industries to Build 1,000MW Power Plant in Kenya

Dangote Industries is planning a 1,000-megawatt liquefied natural gas (LNG) power plant in Lamu, Kenya, as part of its proposed refinery project. The Kenyan government is negotiating with Dangote Industries to potentially double the planned capacity to 1,000MW.

This expansion aims to address domestic electricity shortfalls and reduce reliance on intermittent power sources by utilizing natural gas reserves from Tanzania. The project is designed to integrate refinery infrastructure with electricity generation, creating a combined energy hub in Lamu.

The facility will use LNG, providing a stable electricity baseload compared to existing wind and solar projects. The gas supply will likely involve a pipeline or LNG shipments to Lamu.

The project aligns with Kenya's need to diversify its energy mix, particularly to mitigate the effects of drought on hydroelectric power. The success of the project hinges on finalizing a gas purchase agreement with Tanzania and securing financing for the refinery.

Future negotiations will focus on the power purchase agreement and environmental assessments.