Dangote plans 1,000MW power plant in Kenya using Tanzanian gas

• Dangote Industries is considering a 1,000MW gas-fired power plant as part of its proposed refinery project in Lamu, Kenya.

• The Kenyan government is reportedly discussing an increase in the plant’s proposed capacity to strengthen electricity supply and support industrial operations.

• Tanzania could supply natural gas to the facility through LNG shipments or a potential pipeline connection.

• The project remains subject to gas-supply and power-purchase agreements, financing, environmental assessments and regulatory approvals.

Clarivox Creatives - Dangote Industries is considering the development of a 1,000-megawatt liquefied natural gas-fired power plant in Kenya as part of its proposed refinery project in Lamu, potentially creating one of East Africa’s largest gas-to-power facilities.

The Kenyan government is in discussions with the industrial conglomerate over increasing the proposed plant’s capacity to 1,000MW, according to The Africa Report. The power component of the project was initially envisaged on a smaller scale.

The proposed expansion is intended to strengthen Kenya’s electricity supply and provide more stable power for industrial operations, with Tanzania emerging as a potential source of natural gas.

If implemented, the project would integrate power generation with Dangote’s planned refinery in Lamu, allowing both facilities to share infrastructure such as port installations and electricity transmission networks.

The proposal comes as Kenya seeks to diversify its electricity mix and reduce its exposure to fluctuations in hydropower generation during periods of drought. The country has expanded geothermal, wind and solar capacity, although the proposed gas plant would provide dispatchable electricity that could complement renewable generation.

Under the plans being discussed, natural gas could be sourced from Tanzania, which has substantial offshore gas resources. Supply options could include transporting LNG by tanker to a receiving terminal in Lamu or establishing a pipeline connection between the two countries.

Such an arrangement could deepen energy trade between Kenya and Tanzania and establish a new regional market for natural gas. However, key commercial and technical issues remain unresolved.

Tanzania emerges as key gas supplier for Kenya project

The project would require Kenya and Tanzania to reach an agreement on gas supplies, while financing would also have to be secured for the refinery and associated power infrastructure.

Negotiations are expected to address the terms of a power purchase agreement as well as environmental assessments required for the proposed expansion.

The development also has implications for the wider Lamu Port-South Sudan-Ethiopia Transport corridor, a regional infrastructure initiative designed to improve transport and trade connections between Kenya and neighbouring economies.

Dangote Industries President Aliko Dangote has previously indicated an interest in expanding the group’s industrial operations in East Africa, following the development of its large-scale refinery business in Nigeria.

Despite the scale of the proposal, the Lamu power project remains subject to technical negotiations, regulatory approvals, financing and commercial agreements.

A final investment decision is expected only after those discussions are concluded, meaning the proposed 1,000MW capacity could still change before construction begins.