Kenya’s energy sector is on the verge of undergoing a substantial transformation, with LNG import terminal, cross-border transmission system for NG supply, and new power plant.
H.E. Mohamed bin Twar Al-Kuwari and the Chief Executive Officer of Qatargas Operating Company Limited, H.E. Khalid Bin Khalifa Al Thani met on Thursday, September 12, with H.E. Kiarie Kuria, Minister of Trade, Investment, and Industry and the of the Republic of Kenya and delegation from the Presidential Office.
The meeting was also attended by H.E. Ambassador of the Republic of Kenya to the State of Qatar Boniface Nduva Mwilu. During the meeting, both sides discussed means to enhance economic and commercial relations between both countries and reviewed the investment across the energy and infrastructure developments.
The Kenyan Minister praised the close relations between his country and Qatar, expressing the strong will for the development of the Floating Storage and Regasification Unit (FSRU) in Mombasa, close to the Kenya Electricity Generating Company (KenGen). The facility is expected to have a storage capacity of 220.000 cubic meters of LNG, and regasification capacity of 10.0 billion cm annually. Additionally, a CCGT power plant will be developed with total net capacity 2.800 MW in two phases of development.
KenGen will secure its largest and longest African gas supply deal from Doha’s massive production expansion project, providing Kenya with 3.2 million metric tons of Liquefied Natural Gas (LNG) a year for 12 years. The long-term sales and purchase supply agreements for delivery to the Mombasa LNG receiving terminal with deliveries expected to start in 2028, directly after the CoD of the terminal.
After the cross-border connection with Tanzania and Ethiopia, the capacity of the terminal will increase to 12.8 billion cubic meters, and the supply deliveries to 4.5 million metric tons yearly. The project will be financed by the African Bank of Development, World Bank, KenGen, NF Group, the National Fund of Kenya, and investors. The project will be developed in partnership with KenGen, QE, Mediterranean Holding (MIH), BW Group, and EM Middle East.
Kuria stressed Kenyan’s desire to encourage QE to invest in Kenya and QG to supply the FSRU, noting that the energy sector offers a host of opportunities for Kenya and the rest of East Africa. His Excellency Kuwari called on QG to supply the import terminal, and investors to get acquainted with the investment climate and opportunities it offers, as well as the incentives presented by the government, especially those in energy, and the economic zones in Mombasa.
H.E. Al Thani affirmed that QG welcomes enhancing the cooperation between Qatar energy and KenGen, stressing that it encourages to explore the opportunities in LNG facilities, and highlighting to the partners the importance for bringing this outstanding business opportunity to QE and QG. H.E said that energy and infrastructure investments are in line with the Qatar international-investment vision.
Sources: NNM, QNG, QCG, KPW, KENGEN, QG, QN.