After $16bn Refinery, Dangote Sets Sights on Another Mega Energy Project in Kenya

• Dangote Industries is negotiating a 1,000MW LNG power plant in Kenya linked to its proposed Lamu refinery
• Gas could be sourced from Tanzania, potentially creating a new regional trade corridor between the two East African nations
• The project could diversify Kenya’s energy mix, strengthen industrial power supply and expand Dangote’s footprint across Africa

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Dangote Industries is planning a major gas-to-power project in Kenya as the Nigerian conglomerate seeks to deepen its industrial footprint in East Africa.

The company is reportedly in discussions with the Kenyan government over the development of a 1,000-megawatt liquefied natural gas (LNG) power plant linked to its proposed refinery project in Lamu.

The planned facility could become one of the largest gas-fired power plants in East Africa and potentially reshape Kenya’s energy landscape.

Kenya pushes for bigger power plant

According to The Africa Report, the Kenyan government is negotiating with Dangote Industries to expand the proposed power component to 1,000MW.

The initial plan was reportedly for a significantly smaller facility, but Kenyan authorities are seeking a larger installation to help address electricity shortages, improve industrial power supply and reduce energy costs.

The project would use LNG to provide more consistent electricity, complementing Kenya’s growing investments in renewable energy.

The proposed power plant would form part of a wider energy hub at Lamu, integrating power generation with Dangote’s planned refinery and associated infrastructure.

Gas could come from Tanzania

A key part of the proposal is securing a reliable gas supply from Tanzania, which has significant natural gas reserves, including offshore resources.

The gas could potentially reach the Lamu facility through a pipeline linking the two countries or by LNG shipments transported by tankers to a receiving terminal at the site.

Such an arrangement could establish a new regional gas-trading corridor between Tanzania and Kenya while providing fuel for the proposed power plant.

However, the project would depend on the successful conclusion of a gas purchase agreement between the two countries.

Dangote expands East African ambitions

The proposed Kenyan project underscores Dangote’s ambition to extend its industrial operations beyond Nigeria after completing its landmark $16 billion refinery project in Lagos.

The Dangote refinery, one of the world’s largest single-train refineries, has significantly expanded the businessman’s presence in Africa’s energy sector.

The Lamu project could similarly position Dangote Industries as a major player in Kenya’s energy and industrial development.

By combining the refinery and power facilities, the company could also benefit from shared infrastructure, including port facilities, transmission networks and other supporting systems.

Lamu project could transform energy trade

The proposed 1,000MW facility is expected to support Kenya’s efforts to diversify its electricity mix and reduce exposure to fluctuations in hydropower output, particularly during periods of drought.

The project is also strategically located within the broader Lamu Port-South Sudan-Ethiopia Transport corridor, which is designed to improve trade and transport links across northern Kenya and neighbouring countries.

Before construction can begin, Dangote and the Kenyan government will need to conclude technical discussions, including agreements covering gas supply and electricity purchases, while completing required environmental assessments.

A final investment decision is expected after the negotiations and technical evaluations are concluded.

Dangote’s 700,000bpd Kenyan refinery faces setback

Legit.ng previously reported that Aliko Dangote’s plan to build a 700,000-barrel-per-day refinery in Lamu, Kenya, is facing fresh challenges, particularly over crude supply in a country that currently has no commercial-scale oil production.

The proposed project comes less than three years after Dangote launched Africa’s largest refinery in Nigeria, despite difficulties including rising construction costs, challenging terrain and poor infrastructure.