Kenyan government shortlists LNG bidders

The Kenyan government has issued request for proposal documents to successful bidders for the 700 MW liquefied natural gas (LNG) thermal power plant in Dongo Kundu, Mombasa, as well as for the 960 MW thermal coal power plant in Lamu.

According to the energy cabinet secretary, Davis Chirchir, the ministry received expressions of interest from 36 companies for the LNG facility and 26 for the coal plant. The ministry has shortlisted 12 companies to compete for the Dongo Kundu LNG plant, while 10 have been selected to bid for the Lamu coal power plant.

The companies are required to show ability to raise at least US$ 1 billion at competitive terms and have strong balance sheets with a minimum of US$ 200 million.

List of successful bidders

The successful bidders for the Dongo Kundu LNG facility include:

• China Petroleum
• Tata Power, in consortium with Gulf Energy
• Globlec
• Mitsui & Co.
• Toyota Tutshu
• Marubeni Corporation
• Sumsang C&T
• GMR Energy
• Quantum Power
• GDF Suez.

The successful bidders for the Lamu Plant include:

• Mitsui & Co.
• Shanxi International Electricity Group
• Sinohydro Group
• Shanghai Electric Power Company
• Tata Power
• Marubeni Corporation
• Allrich International
• Toyota Tutshu
• Toyota Power
• Human Capital Investment Group.

Chirchir explained that winners of the tender would be based on the most competitive Feed-In Tariff as the successful investors will build, own and operate the plants, with an option to transfer to the government after recovering full value of investment.

“As we pick these documents today, competition has been structured. It will not be the debate of I’m the third largest power generator in China or in Europe, you could be big, but what are your costs? I want to know the cost of the power to the national grind, and if your cost is the most competitive you will be the winner,” Chrichir said.

Kenya’s power plan

The two plants are part of Kenya’s plan to generate 5500 MW to inject to the national grid over the next three years in bid to make the country more competitive for investment.

“We need to lower energy costs, so as we make the country the preferred destination for investments in the region,” Chirchir added.

The successful bidder for the Dongo Kundu LNG plant will be required to build a floating storage and re-gasification unit (FSRU) with sufficient capacity and infrastructure to supply natural gas to power plants using heavy fuel oil.

Edited from various sources by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/28012014/government_shortlists_lng_bidders_98/