Kenya is reportedly in advanced talks with Asharami, a subsidiary of Nigerian energy giant, Sahara Group Ltd., to co-build a massive liquefied petroleum gas (LPG) storage and handling facility.
According to sources familiar with the plans, the proposed facility would have a capacity of 30,000 tons, significantly boosting Kenya’s LPG storage capabilities.
Sources told Bloomberg the deal will see state-owned Kenya Pipeline Co. forming a joint venture with Asharami Synergy Plc to build the common user terminal set to be East Africa’s biggest LPG storage and bottling facility in the port city of Mombasa.
They said the facility estimated to take 24-months to build will be financed by Asharami while Kenya Pipeline Co. will provide land for the project located on the port-side.
Joe Sang, the managing director of Kenya Pipeline company told Bloomberg the process of on-boarding a private sector company for the cooking-gas facility is ongoing while a spokesperson for Lagos-based Asharami, which provides warehousing and logistics terminals in the downstream oil and gas sector across Nigeria and other regions in Africa, declined to comment.
This collaboration, if finalised, would mark a significant step for Kenya’s energy sector, potentially enhancing its LPG accessibility and security.
LPG, a clean-burning fuel, is gaining popularity in Kenya as a more environmentally friendly alternative to traditional fuels like charcoal and firewood. The increased storage capacity could lead to steadier LPG supplies and potentially lower prices for Kenyan consumers.
The talks between Kenya and Sahara Group are still ongoing, and details regarding the project’s timeline and investment are yet to be finalised. However, this potential collaboration signifies Kenya’s commitment to improving its LPG infrastructure and promoting cleaner cooking solutions for its citizens.
