Kenya is setting the stage for a significant advancement in its energy sector by entering into negotiations with Asharami, a prominent subsidiary of the Nigerian conglomerate Sahara Group Ltd. This partnership aims to establish a vast liquefied petroleum gas (LPG) storage and handling facility in Mombasa, positioning it to be the largest of its kind in East Africa.
The joint venture is expected to materialize with the cooperation of the state-owned Kenya Pipeline Co., which will pair up with Asharami Synergy Plc. The collaboration will focus on constructing a common user terminal that will greatly expand the region’s capabilities in LPG storage and bottling. According to insiders familiar with the ongoing discussions, the planned facility will boast a substantial capacity of 30,000 tons. This development is poised to fortify Kenya’s LPG storage infrastructure significantly.
Financial backing for this ambitious project will be provided by Asharami, while Kenya Pipeline Co. is set to contribute strategically located land on the port-side. This synergistic approach ensures that both parties leverage their strengths to achieve a common goal. Joe Sang, the Managing Director of Kenya Pipeline Company, shared with Bloomberg that the process of integrating a private sector participant into this venture is actively progressing. However, a spokesperson from Lagos-based Asharami, renowned for their logistics and warehousing solutions across Africa’s downstream oil and gas sector, has opted not to comment on the matter.
If realized, this joint initiative will mark a pivotal moment for Kenya, enhancing not only its LPG storage capacity but also the overall energy security of the nation. LPG is increasingly becoming the preferred choice for Kenyan households shifting away from traditional and less environmentally friendly fuels such as charcoal and firewood. By increasing the availability of LPG, this project could stabilize supply lines and possibly reduce the cost of LPG for consumers, making it a more accessible option for everyday use.
The ongoing discussions between Kenyan authorities and the Sahara Group highlight a mutual commitment to enhancing the region’s energy infrastructure. While the final agreements are still pending, the potential impacts of this project could be transformative, signaling Kenya’s dedication to adopting cleaner energy solutions and improving the quality of life for its citizens through more sustainable cooking methods.
