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14 April 2011

Mott MacDonald appointed on first LNG terminal project in East Africa

Mott MacDonald has been appointed by Kenya Ministry of Energy to provide consultancy services for a potential liquefied natural gas (LNG) regasification plant and import facility. The project, which is being funded by the World Bank and other international lending institutions, is set to be the first of its kind in Kenya and East Africa.

The LNG plant will supply fuel to thermal power generating plants and industries in and around Mombasa. Kenya’s Vision 2030 aims to transform Kenya into an industrialised middle-income country providing a high quality of life to all its citizens by the year 2030. For this objective, an accelerated GDP growth of 10% per annum from 2012 onwards is expected with an associated growth in energy demand. It has been reported that energy demand is set to almost double from 2007 levels.

Azfar Shaukat, Mott MacDonald’s project director said, “Coal and geothermal capacity are expected to fulfil much of the demand, but are becoming constrained and additional oil imports will adversely affect the balance of payments. Hence, natural gas is being actively considered to bridge the gap.”

Mott MacDonald’s role consists of two phases. In phase 1, which was completed in 2010, Mott MacDonald carried out a technical and economic/financial review of proposed terminal configurations and locations. The consultancy was able to advise the client on a cost-effective and economically-efficient option for the terminal design as well as identify alternative future developments.

Phase 2 consists of an internationally compliant Environmental and Social Impact Assessment of the proposed terminal location in Mombasa, and will also include an organisational and institutional study.

Azfar added, “The project is expected to make a substantial contribution to Kenya’s energy security. Furthermore, LNG is the cleanest fossil fuel, producing comparatively little atmospheric emissions, and is very cost efficient to transport over long distances where pipelines do not exist.”

Phase 2 is due for completion towards the middle of 2011.

Ends

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