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Tue 22 Apr 2014 05:07 PM

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Kenya seeks Qatar natural gas for power station project

African country says will negotiate imports from Qatar Gas for Mombasa power station

Kenya seeks Qatar natural gas for power station project

Kenya will negotiate the import of natural gas from Qatar Gas to fuel a power station it wants built in the Indian Ocean port city of Mombasa, the president's office said on Tuesday.

The gas-powered power plant is part of the government's plans to add 5,000 MW to Kenya's existing 1,664 MW generation capacity by 2017 to accelerate economic growth, which is expected to push Kenya's power demand up to 15,000 MW by 2030.

The Ministry of Energy and Petroleum is evaluating bids from investors interested in developing the 700-800 MW natural gas-fired plant near Mombasa, as well as a 900-1,000 MW coal-power plant at Lamu.

The announcement was made during a visit by President Uhuru Kenyatta to Qatar.

"The President noted that Kenya Pipeline had already signed a Non-Disclosure Agreement with Qatar Gas to start negotiation for the supply of 1 million metric tonnes per annum of LNG to Kenya to power the 700-megawatt gas plant in the port city of Mombasa," Kenyatta's press office said in a statement.

The statement provided no further details on when the negotiations were expected to start.

The Nairobi government wants to halve the cost of electricity within three to four years from between 17 and 18 U.S. cents per kilowatt hour, mainly by increasing supply from cheaper energy sources, phasing out diesel generation.

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