Liquefied petroleum gas storage tanks. LPG cost in Mombasa is much higher than in Dar es Salaam. PHOTO | COURTESY Despite Kenya and Dar signing an agreement to start working on a gas pipeline from Dar es Salaam to Mombasa, as part of a long-term project to share energy resources, Kenya remains open to other options including importing the commodity.
This means, that the agreement between Kenya and Tanzania might be nullified if the company recommends cheaper means to get natural gas to generate power.
US-based K&M advisors said that Kenya will go for the cheapest option as it seeks to develop a liquefied natural gas (LNG) import terminal in Mombasa.
Kenya has revived its ambitious natural gas generation project after it gave the greenlight to a US firm to conduct a feasibility study for gas power generation in Mombasa.
This comes as Nairobi seeks to cut its reliance on Dar es Salaam for liquefied petroleum gas (LPG), which has seen the Tanga plant in Mtwara service nearly half of the Kenyan market, trucked via Namanga and Holili border posts.
Despite Kenya and Dar signing an agreement to start working on a gas pipeline from Dar es Salaam to Mombasa, as part of a long-term project to share energy resources, Kenya remains open to other options including importing the commodity.
This means, that the agreement between Kenya and Tanzania might be nullified if the company recommends cheaper means to get natural gas to generate power.
US-based K&M advisors said that Kenya will go for the cheapest option as it seeks to develop a liquefied natural gas (LNG) import terminal in Mombasa.
“K&M Advisors has been engaged by the Kenya Electricity Generating Company PLC (KenGen) on behalf of the Kenyan government and the country’s energy sector to conduct a feasibility study for natural gas power generation in Kenya. The feasibility study will examine the technical, economic, financial and environmental and social feasibility of project,” read the statement by K&M Advisers. Diversify energy mix
While Kenya does not have its own natural gas resources, the study will examine the potential to create a domestic natural gas market for power generation and industrial use via importation with the aim to help diversify the country’s energy mix, improve energy security, reduce the cost of electricity and reduce greenhouse gas emissions.
The study, organised into 17 tasks that will be implemented over 12 months, will examine the technical, economic, financial […]
