- Dangote Industries is planning a 1,000MW LNG power plant in Kenya.
- The project could use natural gas supplied from Tanzania to generate electricity in Lamu.
- Kenya is pushing to double the power plant’s originally planned capacity.
- The facility would form part of Dangote’s proposed refinery and energy hub in coastal Kenya.
Dangote Industries is preparing to take another step into East Africa, with plans for a 1,000-megawatt liquefied natural gas power plant in Kenya that could be supplied with gas from neighbouring Tanzania.
The proposed plant would form part of Dangote’s planned refinery project in Lamu, creating an industrial complex that combines refining and power generation in one location.
According to a report by Africa Report, the Kenyan government is negotiating with Dangote Industries to increase the planned power capacity to 1,000MW as it looks for more reliable electricity for industries and households.
The project could also open a new route for Tanzania’s natural gas into Kenya’s energy market, with the gas potentially transported through a pipeline or shipped as LNG to a receiving terminal at Lamu.
Kenya Wants More Power From The Dangote Project
The proposed power plant was initially expected to be much smaller, but Kenyan authorities are pushing for a larger facility that could help strengthen electricity supply and support industrial activity.
The plant would run on LNG and provide a steady source of electricity alongside Kenya’s existing mix of hydro, wind, solar and other power sources.
Kenya has been looking to diversify its electricity supply partly because drought can reduce hydroelectric generation. A gas-fired plant could provide another source of power when renewable generation fluctuates.
Locating the facility alongside the proposed Lamu refinery could also reduce the need to build separate infrastructure for the two projects. The refinery complex could share facilities such as the port, gas-receiving infrastructure and electricity transmission connections.
At 1,000MW, the proposed plant would rank among the largest gas-to-power projects in East Africa.
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Tanzania Could Become Part Of Dangote’s Kenya Energy Play
One of the most significant parts of the proposal is where the gas could come from.
Tanzania has significant natural gas reserves, including offshore resources, and the proposed arrangement could create a cross-border supply chain connecting Tanzanian gas to electricity generation in Kenya.
The gas could reach Lamu through a pipeline connecting the two countries or through LNG shipments transported by tanker to a receiving terminal at the project site.
That would give the proposed refinery and power plant access to a fuel source outside Kenya while creating a new commercial route for Tanzanian gas.
For Dangote, the plan also fits a larger strategy of building industrial infrastructure around its core businesses. The group already operates one of the world’s largest single-train refineries in Nigeria and has been pursuing opportunities to expand its presence across Africa.
The Lamu project sits within the Lamu Port-South Sudan-Ethiopia Transport corridor, a major infrastructure initiative designed to improve trade and transport connections across northern Kenya and into neighbouring countries.
However, the 1,000MW plant is still a proposal rather than a completed project. Dangote and the Kenyan government still have to settle issues including the gas supply arrangement, power purchase agreement, financing and environmental approvals.
A final investment decision will depend on the outcome of those technical and commercial discussions.
If the project moves ahead at the proposed scale, Dangote would not simply be building another refinery in Africa.
It would be creating an energy hub that links Kenyan electricity demand, Tanzanian natural gas and Dangote’s industrial ambitions across three parts of East Africa.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
