Kenya And Sahara Group To Develop East Africa's Largest LPG Facility

In a significant move for East Africa’s energy sector, Kenya is in advanced talks with Asharami Synergy Plc, a unit of Nigeria-based Sahara Group Ltd., to co-develop a 30,000-ton facility for handling and storing Liquefied Petroleum Gas (LPG). This joint venture aims to establish the largest LPG storage and bottling facility in East Africa, situated in the port city of Mombasa. This collaboration will see state-owned Kenya Pipeline Co. partnering with Asharami Synergy PLC to construct the common user terminal. The project, expected to take 24 months to complete, will be financed by Asharami, while Kenya Pipeline Co. will provide the land, strategically located on the port-side to facilitate efficient logistics and distribution.

An insider, speaking anonymously, revealed that the deal is anticipated to be finalized by the end of July. Kenya Pipeline Managing Director Joe Sang confirmed the ongoing process of onboarding a private sector partner for the cooking-gas facility but withheld further details. Likewise, a spokesperson for Asharami, which operates warehousing and logistics terminals in the downstream oil and gas sector across Nigeria and other African regions, declined to comment.

This initiative is set to play a crucial role in helping Kenya achieve universal access to clean cooking energy by 2030. Currently, over 90% of rural households in Kenya rely on biomass fuels such as wood and charcoal, which produce harmful gases like carbon monoxide. These emissions are responsible for the premature deaths of more than 600,000 people annually across the continent, according to the World Bank.

President William Ruto, a strong advocate for green energy, aims to double the nation’s LPG usage from the current 7 kilograms (15 pounds) per capita. The new facility in Mombasa is poised to significantly contribute to this goal, offering a more sustainable and health-friendly alternative to traditional biomass fuels.

We observed that Sahara Group, a Nigerian multinational with extensive experience in the energy sector, has already proven its capability for large-scale LPG infrastructure projects. The company built a 12,000 metric tonne LPG tank farm in Côte d'Ivoire, greatly enhancing the region's LPG supply chain. Despite this success in Côte d'Ivoire, Sahara currently does not operate a similar tank farm in Nigeria. This expansion into Kenya marks a significant step in Sahara's regional influence and underscores their commitment to advancing clean energy across Africa.

The Côte d'Ivoire LPG tank farm, with its substantial storage capacity, has set a high standard for efficiency and reliability in LPG handling and storage. This facility has boosted local LPG availability and reduced dependency on biomass fuels, mirroring the intended impact of the upcoming Mombasa project. The successful operation of the Côte d'Ivoire facility provides a strong precedent and reassurance for the planned development in Kenya. 

This partnership highlights the potential of public-private collaborations in driving sustainable energy solutions and improving the quality of life for millions of people in East Africa and Nigeria. 

• Lpg
• cooking gas
• nigeria
• kenya
• west africa
• east africa
• sahara group
• wlpga

Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.