Qatargas to export LNG to power plant in Kenya

power plant moment captured flickrQatargas has announced that it will export 2.8mn cubic metres of LNG per year to fuel a 700MW power station situated at Mombasa in Kenya

This power plant is reportedly part of the Kenyan government’s plan to add 5,000MW to the nation's existing power capacity of 1,664MW by 2017, that is expected to accelerate economic growth in the region.

According to Reuters, Kenya’s power demands are likely to go up to 15,000MW by 2030. The Ministry of Energy and Petroleum is, meanwhile, evaluating bids from investors who are keen to develop the plant near Mombasa and another 1,000MW coal plant at Lamu.

In a statement, Uhuru Kenyatta, President of Kenya, said, ”Kenya Pipeline had already signed a non-disclosure agreement with Qatargas to start negotiation for the supply of 2.8mn cubic metres per annum of LNG to Kenya to power the 700MW gas plant in the port city of Mombasa.”

However, there was no update on when the negotiations would begin.

The Kenyan government wants to halve the cost of electricity within three to four years from between US$0.16 to US$0.17 per kW-hour, mainly by increasing supply from cheaper energy sources, phasing out diesel generation, stated reports.

Saleh Al Sada, minister for energy and industries in Qatar, added that the country was keen on working with Kenya in energy and other sectors.

According to Ahmad Mohamed Al Sayed, CEO of Qatar Investment Authority, the Qatari business community is keen to establish joint ventures with its Kenyan counterparts as Kenya is Qatar’s main link to African markets.

Once Kenya and Qatar sign an agreement on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income tomorrow, the foundation for joint business ventures will have been firmly laid, he added.

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