Dangote Industries is planning to develop a 1,000-megawatt liquefied natural gas-fired power plant in Kenya as part of its proposed refinery project in Lamu.

According to Africa Report, the Kenyan government is negotiating with the company to double the planned capacity of the power plant to 1,000MW.

The expansion is intended to address Kenya’s electricity supply shortfalls and reduce its dependence on intermittent power sources by using natural gas from Tanzania.

The proposed plant forms part of a broader plan to integrate the refinery with power generation, creating a major energy hub in Kenya’s coastal Lamu region.

Officials said the project would depend on a reliable supply of natural gas from Tanzania, which has significant confirmed offshore reserves.

The gas is expected to be delivered either through a pipeline connection or by LNG tankers to a receiving terminal at the Lamu site.

The cross-border gas arrangement could establish a regional energy corridor and create a structured market for natural gas trade between Kenya and Tanzania.

Kenya’s Ministry of Energy has previously stressed the need to diversify the country’s energy mix to reduce the impact of drought-related declines in hydroelectric power generation.

Integrating the proposed 1,000MW power plant with the Lamu refinery complex could also allow the project to share infrastructure, including port facilities and transmission lines, potentially lowering overall capital costs.

The Lamu project is also linked to the wider Lamu Port-South Sudan-Ethiopia Transport Corridor, which is designed to open up northern Kenya and strengthen trade and transport links with neighbouring countries.

With a planned capacity of 1,000MW, the facility could become one of the largest gas-to-power projects in East Africa, potentially reshaping the region’s electricity supply and energy trade dynamics.

However, the project’s success will depend on the conclusion of a gas purchase agreement between Kenya and Tanzania, as well as securing financing for the construction of the refinery and associated infrastructure.