M a r k e t N e w s

Tehran, Nairobi Mull Energy Cooperation

Posted on : Monday, 26th September 2016

Oil Minister Bijan Namdar Zanganeh said the implementation of the accord between Iran and major powers, formally called the Joint Comprehensive Plan of Action, has paved the way for promoting Tehran-Nairobi relations that are of high importance to Iran.

Zanganeh made the statement after meeting Kenyan National Assembly Speaker Justin Muturi in Tehran on Sunday, Shana reported.
"Expanding cooperation with Africa tops Iran's foreign policy priority," he added.
The oil minister noted that the two states can collaborate in a wide range of fields, namely energy and supply of oil byproducts.
Oil is Kenya’s major source of commercial energy and has, over the years, accounted for about 80% of the country’s commercial energy requirements. In 2012, significant oil reserves were discovered in northwestern Kenya. Studies are still being carried out to establish the economic feasibility.
Pointing to previous bilateral memorandums of understanding that were never implemented, Zanganeh said, "Now that international sanctions have become a thing of the past, we are keen to harness the potential and capacities to boost bilateral cooperation, particularly in the field of energy."
According to Mohammad Reza Safari-Rad, deputy manager of Sirri refinery, two consignments of gas condensates, in addition to liquefied gas, have recently been shipped to Kenya from the refinery.
After holding talks with Parliament Speaker Ali Larijani on Saturday, the Kenyan lawmaker said, "Nairobi seeks closer interaction with Tehran in various sectors, especially economy. We discussed cooperation in industrial, oil and gas fields."
According to Kenya's state-owned Geothermal Development Company, it is currently the largest producer of geothermal energy in Africa.
Electricity supply is predominantly sourced from hydro and fossil fuel sources. Until recently, the country lacked significant domestic reserves of fossil fuel. The country has over the years had to import substantial amounts of crude oil and natural gas.
Kenya seeks to increase its power production through a 5,000-megawatt program, which is focused on delivering new electricity generation infrastructure by 2030.
Reportedly, Kenya is set to join the ranks of oil producing nations after its government approved plans to extract up to 4,000 barrels per day from newly discovered reserves. African multinational oil and gas company, Tullow Oil, discovered crude deposits in the country's Turkana region in 2012 and is partnering with the country as it readies for full commercial exploration.
Kenya received grants three days ago amounting to $700 million for the energy sector from the US. The agreements were signed in New York in the presence of Deputy President William Ruto.
Ruto said the agreements in the renewable energy sector resonate directly with the US' Power Africa initiative which, at full implementation, is expected to contribute immensely to the increase and diversification of power generation across the African continent.
He said the Kenya government was committed to providing affordable and competitive electricity across the entire country within very strict time deadlines.
"Indeed, the government has achieved significant progress toward our stated target of increasing power generation capacity in Kenya by 5,000 MW between the year 2013 and 2018," he said.
Ruto said Kenya had doubled the number of citizens connected to the grid from around 13 million to almost 25 million, and connected over 14,000 new schools to electricity.

Source : financialtribune.com
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