Kenya is delaying signing an agreement on importing Liquefied Natural Gas (LNG) from Qatar due to the discovery of 1.8 trillion cubic feet(Tcf) of gas in onshore block 9.The signing of a deal for Qatar to supply 1 million of LNG a year to fire a planned 700MW power plant in Mombasa was being delayed.
The government was looking at ways of optimizing the use of the gas found in the middle of last year by Africa Oil Corp. at the Sala-1 well in block 9 in North Eastern Kenya before making a commitment to import LNG from Qatar.
The plan is to transform the natural gas that Africa Oil and Marathon Oil Corporation discovered to power in the next nine to 15 months to add an additional 200-500MW to the national grid.
Kenya plans to build in Indian Ocean, port city of Mombasa at Dongo Kundu, a 700-MW plant to use LNG from Qatar to contribute to generation of additional 5GW by 2017 to reduce cost of electricity to about 7 US cents/KWh.
The building of the Dongo Kundu 700MW gas plant entails the construction of a floating storage re-gasification unit to supply gas to other electricity generating plants in Mombasa currently fired by diesel.
In April 2014, Kenya Pipeline signed a non-disclosure agreement with Qatar Gas to negotiate the supply of 1 million mt/year of LNG when President Uhuru Kenyatta visited Qatar.
Africa Oil and Marathon Oil Corporation, each own 50% of the onshore block 9.