Kenya’s electricity generator KenGen is now seeking Sh57 billion from willing investors so as to set up a gas-powered power plant. The plant to be set at the port city in Mombasa is to be run on imported liquefied natural gas (LNG).
Following the growing demand of electricity, frequent black outs caused by generation blackouts and an aging grid, the LNG plant is expected to help solve this problem as well as move the company away from over reliance of hydro power.Currently,KenGen produces a total of 1,414 MW from thermal, hydro and other renewable sources.
The plant is expected to start construction by the year 2015 after it has sought for financing in private and public partnerships.
“We have not raised any funds yet but we are working closely with the Private Public Partnership (PPP) unit on how we can structure the project to be implemented as a PPP project” said Eddy Njoroge, managing Director KenGen.
Construction of the plant is estimated to take up to 5 years with an output of up to 485 mega watts and an economic life of 20 years. The natural gas could be sourced from Middle East and other parts of the world.
The search and use of natural gas has been ongoing in many countries.The natural gas is considered since it emits less carbon dioxide than other fossil fuels such as coal or oil. Royal Dutch Shell Company floats the world’s first floating natural gas plant 200km out to sea off the coast of Australia. It is also the biggest floating offshore drilling structure in the world, weighing in at about 600,000 tonnes