Tanzania’s Taifa Gas to set up gas plant in Kenya

Tanzania’s Taifa Gas has announced plans to set up a gas plant and storage facilities in Kenya. The firm’s move aims to bring healthy competition in the gas industry in Kenya given its lower prices.

Taifa received a licence to set up the project at a site in Dongo Kundu near the port of Mombasa to supply LPG for domestic, commercial and industrial use. An impact assessment study report is expected this month, and the company intends to invite public comments on the construction of the plant.

READ:Algeria, Nigeria, Niger inks deal for trans-Saharan gas pipeline project

Trade deal

“Taifa Investment SEZ Limited proposes to construct a liquefied petroleum gas plant, storage terminal and related facilities at Dongo Kundu in Mombasa County. The proposed plant is designed to store propane, butane and LPG mix of various grades for domestic, commercial and industrial use,” said the firm in a notice.

Taifa Gas is owned by Tanzanian business magnate Rostam Aziz. The entry of Taifa Gas into Kenya is part of a trade deal between Kenya and Tanzania signed between Kenyan President Uhuru Kenyatta and Tanzania’s Samia Suluhu last year.

Some of the companies which have applied for the license to tap in the submerged gas pipeline from new Kipevu Oil Terminal (KOT2) include Aevitas Investment, Mombasa Gas Terminal Limited (MGT), Lions Gate limited, Focus Container Freight Station and Mansa East Africa Limited. Once licensed, they will cater for the untapped LPG market with the increasing population and demand in the country and in the East African region.

Kenya imports about 40% of gas annually from Tanzanian liquefied petroleum gas (LPG) firms via the Namanga and Holili border posts and the remainder is imported through the Port of Mombasa. The LPG cost in Mombasa is much higher than in Dar es Salaam LPG because the offloading and storage infrastructure at Dar es Salaam or Tanga ports is more efficient.