Tanzania’s largest gas trader, Taifa Gas, has been licensed to build a gas plant and storage facilities at a site in Dongo Kundu near the Port of Mombasa to supply LPG for residential, commercial and industrial use.
The company, owned by Tanzanian business tycoon Rostam Aziz, is expected to bring healthy competition to the gas industry in Kenya given its lower prices.
An impact assessment study report is expected this month, the company said in a press release , that it intends to solicit public comments on the construction of the facility.
“Taifa Investment SEZ Limited is proposing to construct an LNG plant, storage terminal and related facilities at Dongo Kundu, Mombasa County. The proposed facility is to use propane , butane and LPG mixtures of various grades for domestic, commercial and industrial use,” reads a T Part of the announcement.
The entry of Taifa Gas into Kenya is part of a Kenya-Tanzania trade agreement signed between Kenyan President Uh uru Kenyatta and Samia Suluhu of Tanzania.
During the recent During bilateral trade talks between the two countries, held in Zanzibar, Kenya pushed for local airline JamboJet to be allowed to fly to multiple destinations in Tanzania.
Read:Jambojet, harvesting Taifa gas great success in Dar Nairobi deal
Nairobi also wanted a waiver of fees charged for tourist vehicles from the Namanga border to Tanzania.
Tanzania raised several issues, including delays in goods clearance due to scanning procedures, delays in issuing import licenses for milk exports, cumbersome procedures by the Kenyan tax authorities and Taifa Gas’s difficulties in investing in Kenya.
More al s five companies have applied to build gas facilities in Kenya.
Some of the companies licensed to drill the submerged gas pipeline from the 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 serve the untapped LPG market with the growing population and demand in the country and East Africa region .
Kenya imports about 40 percent of its gas annually from Tanzanian Liquefied Petroleum Gas (LPG) companies through the Namanga and Holili border posts, and the rest is imported through the Port of Mombasa.
The LPG Cost Mombasa is much higher than Dar es Salaam LPG because the unloading and storage infrastructure is more efficient in Dar es Salaam or Tanga ports.