Page 6 - GLNG Week 43 2021
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GLNG AFRICA GLNG
KenGen contractor to study feasibility
of LNG-to-power project
PROJECTS & KENYA’S national electricity provider has in or near Mombasa, it reported.
COMPANIES reportedly chosen US-based K&M Advisors as As such, the study will attempt to determine
its contractor for a feasibility study of a proposed whether regasified LNG is a more cost-effective
LNG-to-power project. fuel for power generation than petroleum prod-
K&M Advisors announced the contract ucts in Kenya. (Part of this process will involve
award last week, saying it had agreed to perform scrutinising a number of different potential K&M Advisors
this service for state-owned Kenya Electricity suppliers.) It will also examine opportunities for
Generating Co. (KenGen) over a period of 10-12 supplying gas to Kenyan industrial consumers will examine the
months. The study will address the viability of that are now relying on residual fuel oil or diesel.
proposals to build an LNG import terminal in Kenya is not currently a producer or con- cost and viability
the port of Mombasa and examine the potential sumer of natural gas. However, it has expressed
technical, financial, economic, social and envi- interest in importing gas from neighbouring of various LNG
ronmental impact of such a project, it stated. Tanzania. import facilities.
Additionally, K&M Advisors will examine More specifically, Kenyan President Uhuru
the cost and viability of various LNG import Kenyatta discussed the possibility of construct-
facilities. These will include onshore terminals ing a cross-border pipeline in May of this year,
and floating storage and regasification units during a meeting with his Tanzanian counter-
(FSRUs), as well as smaller-scale options such as part Samia Suluhu Hassan in Nairobi. At the
rail or truck delivery. time, both Suluhu and Kenyatta described the
The US-based consultancy has not revealed proposed pipeline as part of a wider long-term
the value of the contract. It has said that KenGen initiative that would help the two countries
is looking at plans to build the LNG import ter- share energy resources. They also put the cost of
minal within the framework of a wider effort to building the link along a 600-km route ending in
establish a domestic gas market in Kenya. This Mombasa at around KES121bn ($1.09bn).
initiative would entail converting 10 existing According to Kenyatta, the pipe would allow
generating facilities that burn heavy residual fuel Kenyan TPPs to use gas as fuel for generation,
oil or kerosene to gas, as well as the construction thereby bringing down the cost of power in
of a new gas-fired thermal power plants (TPPs) Kenya and also reducing emissions.
P6 www. NEWSBASE .com Week 43 29•October•2021
