Kenya in talks with Nigeria's Sahara to build mega LPG facility
TLDR
- Kenya discussing partnership with Sahara Group for a 30,000-ton LPG facility in Mombasa to enhance clean energy access.
- Joint venture between Kenya Pipeline Company and Asharami Synergy Plc with completion expected in 24 months.
- Project aimed at supporting Kenya's goal of achieving universal access to clean cooking energy by 2030.
Kenya is in talks with a subsidiary of Nigeria’s Sahara Group to jointly construct a 30,000-ton facility for handling and storing liquefied petroleum gas (LPG), according to sources familiar with the matter cited by Bloomberg.
The deal will see state-owned Kenya Pipeline Company forming a joint venture with Asharami Synergy Plc to build East Africa’s largest LPG storage and bottling facility in Mombasa. The facility, expected to be completed in 24 months, will be financed by Asharami.
The deal is anticipated to be signed by the end of July. Kenya Pipeline will provide the land for the project, which is located on the port side. This project aims to help Kenya achieve universal access to clean cooking energy by 2030.
Key Takeaways
President William Ruto has been advocating for Kenya to become a leader in green energy in Africa. As part of this initiative, he aims to double the current per capita usage of LPG, which stands at 7kg. Kenya Pipeline Managing Director Joe Sang informed Bloomberg that the country is also working to involve a private sector company in the new cooking gas facility. Additionally, to enhance the LPG supply and reduce fuel prices, Kenya is negotiating with Saudi Aramco to acquire a floating LPG barge. Sang emphasized that these efforts are part of Kenya's broader strategy to improve its energy infrastructure and support the President's green energy objectives.
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