Source Africa LNG (SAL)

Project 2023-2026

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Source Africa LNG (SAL)

Project 2023-2026

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SAL'sJourney

  • 2013
    Government lays plans to generate an extra 5,000 MW in the next 40 months
  • 2014
    Launch of 700 MW LNG tender to generate power for Dongo Kundu Special Economic Zone using LNG from Qatar
  • 2016
    Kenya - Tanzania ink deal to explore feasibility of building a 600km pipeline valued at US $ 1.1 B
  • 2021
    Ministry of Petroleum & Mining issues a Letter of No Objection to Tanzania Petroleum Development Corporation (TPDC) to allow small train imports of gas in to Kenya
  • 2022
    President Ruto and President Suluhu agree to fast-track gas exports from Tanzania to Kenya.
  • 2023
    January
    Source Africa LNG applies to Special Economic Zone Authority to bring small train natural gas with barges from Lindi and Mtwara to Dongo Kundu SEZ to make Kenya a hub for LNG trade.
  • 2023
    March
    SAL signs private sector driven agreements with Trans Gas Solutions to construct a 70,000 cubic meter LNG carrier specifically to serve Dongo Kundu and start a local LNG export hub in Kenya.
  • 2023
    March
    SAL signs a private sector driven agreement with Trans Gas Solutions to build a 120,000 cubic meter Floating Electricity and Gas Supply Unit Station (FEGASUS)

Project Overview

Dongo Kundu Special Economic Zone Energy and Manufacturing Hub:

  • State-of-the-art Offshore LNG Terminal: Integrated electricity generation, hydrogen production, water desalination, and CO2 bunkering capabilities.

  • Onshore Gas Distribution & Manufacturing: A transformative hub for clean energy, fostering economic growth.

Why Do It?

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Reduce Electricity Costs by 15%

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Direct Investment into Dongo Kundu SEZ

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$ 1 Billion per Year in Cost Savings

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Open Kenya to Global LNG & Hyrdogen Markets

The Process

  • 1 - Gas Purchase from Reliable Sources
    Gas-Rig
  • 2 - Gas Processing & Liquefaction
    gas-processing
  • 3 - LNG Shipping
    gas-hauling
  • 4 - Hub LNG Import & Regasification
    lng-hub
  • 5 - Cryogenic Trucks
    cryogenic
  • 5 - End User
    end-user

Project Outputs

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01

400 MW electricity generation for Lamu and Dongo Kundu SEZ

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02

Hydrogen production – 5 tons per day

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03

Water desalination – 300 tons per day

co2

04

Carbon dioxide bunkering – 60 tons per day

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05

Piped natural gas distribution in:

  • Mombasa households
  • Kipevu Power
  • Devki Steel
  • And later to Nairobi
local_gas_station

06

Natural Gas refill units along Mombasa– Nairobi highway

Benefits and Impacts

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Environmental Impacts

  • Zero carbon emissions, aligning with global climate objectives.
  • Potential carbon credit earnings from bunkered carbon dioxide.
  • Water desalination to change the Dongo Kundu environment through afforestation.
  • Introducing pollution free Hydrogen as a new source of energy in Kenya.
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Economic

  • $1 Billion in cost savings by replacing diesel and heavy fuel oil.
  • A 15% reduction in electricity costs.
  • A catalyst for generating direct and indirect employment, creating a plethora of job opportunities.
  • Power generation to support electrification of SGR.
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Investments

  • Spur development of Dongo Kundu SEZ with affordable electricity at 12 US Cents per kilowatt-hour.
  • Establishment of an international manufacturing hub in Dongo Kundu SEZ.
  • LNG refueling for ships to comply with International Maritime Treaty.
  • Foreign exchange earnings from hydrogen exports

Project Financial Metrics

$ 3 Billion

Project NPV (Net Present Value)

25%

Project IRR (Internal Rate of Return)

$ 820 million

CAPEX (Capital Expenditure)

25%

Gross Profit Margins

9 Years

Project Amortization

25%

Net Profit Margins

Project Financing Overview

S/N Description Amount
1 Project Implementation Plan $80,000,000
2 LNG 70,000 m3 Carrier Vessel(s) $174,000,000
3 120,,000m3 Floating Storage Regasification Unit/s (FSRUs) $466,000,000
4 120,000 MT Onshore Storage
5 300 MT/d Desalination Unit
6 5 MT/d H2 Conversion, 60MT/d CO2 Capture (CCS), 200MW LNG Energy Production Plants, Cryogenic Transport Trucks
7 Total Marine, Civil Works & Infrastructure for LNG Platform $100,000,000
8 Total Amount $820,000,000

Partners

end-user
Original Equipment Manufacturers
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Transaction Advisor
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Technology Transfer
end-user
Project Management
end-user
Molecule Supplier
end-user
Gyeonggi University of Science & Technology
end-user
FEGASUS Manufacturer
end-user
Project Contractor

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