Kenya in Advanced Talks with Sahara Group’s Asharami for Major LPG Storage Facility


Kenya is reportedly in advanced negotiations with Asharami, a subsidiary of Nigerian energy conglomerate Sahara Group Ltd., to jointly develop a substantial liquefied petroleum gas (LPG) storage and handling facility.

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Sources familiar with the project have revealed that the proposed facility will have a capacity of 30,000 tons, significantly enhancing Kenya’s LPG storage capabilities. The agreement will involve state-owned Kenya Pipeline Co. partnering with Asharami Synergy Plc to construct what is set to be East Africa’s largest LPG storage and bottling facility, located in the port city of Mombasa.

The facility, expected to take 24 months to complete, will be financed by Asharami, while Kenya Pipeline Co. will provide the land for the project. Joe Sang, managing director of Kenya Pipeline Co., confirmed to Bloomberg that the process of integrating a private sector company for the cooking-gas facility is ongoing. A spokesperson for Asharami declined to comment.

If finalized, this collaboration would represent a significant advancement for Kenya’s energy sector, potentially improving LPG accessibility and security. LPG, known for its clean-burning properties, is becoming increasingly popular in Kenya as an eco-friendly alternative to traditional fuels such as charcoal and firewood. The expanded storage capacity could ensure a more stable supply of LPG and potentially lower prices for consumers.

Negotiations between Kenya and Sahara Group are ongoing, with details regarding the project’s timeline and investment yet to be finalized. Nevertheless, this potential partnership underscores Kenya’s dedication to enhancing its LPG infrastructure and promoting cleaner cooking solutions for its population.

Emman Tochi
Emman Tochi
Emma Tochi is Naija247news Media Northern Bureau Chief, he's based in FCT Abuja. He overseas the northern operations of this business media

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