Ken Petrogas Limited will set up a Kes1.13 billion liquefied petroleum gas (LPG) and liquefied natural gas (LNG) factory in Shimoni, Kwale County to help lower the prices of gas.

A floating jetty, 140,000 m3 of LNG storage tanks, 10,000 metric tonnes (MT) of LPG storage tanks, and an LPG/LNG truck marshalling yard with room for 65 trucks will also be built as part of the new facility.

An Environmental & Social Effects Assessment Report describing the proposed construction was submitted for clearance to the National Environment Management Authority (NEMA).

According to the company, the first phase of the proposed project will entail the construction of an LPG receiving & storage facility that will be able to store up to 10,000 metric tonnes of LPG.

“In the second phase an LNG handling facility of 140,000 cubic meters. The site layout for the development is as shown figure below,” the company says.

Gas prices have been rising in the country due to high demand for the product coupled with low supply over the last few years.

This comes days after a Tanzanian billionaire Rostam Aziz received a license to put up a cooking gas plant in Mombasa estimated to cost Kes16.25 billion.

Under the brand name Taifa Gas, the facility will have a capacity of 30,000 tons at the Special Economic Zone in Dongo Kundu.

Taifa Gas is Tanzania’s largest supplier of LPG.