Gas discovery likely to end Kenya’s LNG deal with Qatar

New discovery scuppers LNG deal with Qatar
New discovery scuppers LNG deal with Qatar

Kenya’s 1.8 trillion cubic feet (Tcf) gas discovery has seen the country put on hold a deal that will see Qatar supply the East Africa country one  million tonnes of LNG per year. The Qatar gas deal was put in place to secure feedstock for the 700MW planned Mombasa power plant. The planned Floating Storage re-gasification unit was also expected to supply gas to other power plants in Mombasa currently fired by diesel. However, the gas discovery by Africa Oil Corporation in 2014 has prompted the Kenya government to reconsider the deal and assess ways to optimise gas from the onshore field before making any commitment. Africa Oil corp discovered a 1.8Tcf of gas at its Sala-1 well on block 9 in the north-eastern part of Kenya in June 2014. The block is operated by Africa oil and jointly owned with Marathon Oil 50/50.

The development of the well is likely to fulfil Kenya’s current local demand and reduce the need for any LNG deal with Qatar.

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