Dangote Industries plans to build a 1,000-megawatt LNG power plant in Lamu alongside its proposed oil refinery, in a move that could significantly boost Kenya's electricity capacity.
Dangote Industries plans to develop a 1,000-megawatt liquefied natural gas (LNG) power plant in Lamu as part of its proposed oil refinery project — a move that could significantly expand 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 power plant to 1,000MW, with the facility expected to provide a more stable source of electricity for industrial operations.
The proposed plant would run on LNG supplied from Tanzania. Discussions are reportedly expected to weigh two options for getting the gas to Lamu: a pipeline connection between the two countries, or transportation by tankers to a receiving terminal built at the Lamu site.
The plan would see power generation integrated directly with the refinery, effectively creating a single energy and industrial hub in Lamu.
The push for the larger 1,000MW capacity is being driven by a mix of factors: addressing Kenya's persistent electricity shortages, diversifying the country's energy mix, and potentially bringing costs down for industrial users.
The proposed plant would also serve as a baseload source of electricity — a steady, always-on supply that complements Kenya's growing wind and solar generation, which by nature fluctuates with weather conditions. Kenya has for years looked to diversify its electricity sources partly to reduce its exposure to swings in hydropower output, particularly during drought periods, and a large gas-fired plant would give the grid an additional dispatchable power source for industrial and other needs.
If completed, the 1,000MW facility would rank among the largest gas-to-power projects in East Africa.
Its development, however, still hinges on several moving parts: agreements on gas supply, financing, power purchase arrangements, and environmental requirements all still need to be settled.
The power plant development comes as Dangote prepares to break ground on the Lamu oil refinery project itself, with the groundbreaking ceremony scheduled for September 30.
The refinery is expected to serve markets across East Africa. President Ruto's economic adviser, David Ndii, has estimated the region could supply the refinery with more than 600,000 barrels of crude oil daily — 350,000 barrels from South Sudan, 250,000 from Uganda, and 120,000 from Kenya.