Algeria’s national energy company Sonatrach and the Kenya National Oil Corporation (KNOC) have taken a substantial step toward boosting East-West African energy trade via a Memorandum of Understanding signed at IATF 2025 in Algiers. The agreement lays out plans for Algeria to export liquefied petroleum gas (LPG) and refined petroleum products to Kenya, while also collaborating on joint upstream projects, knowledge transfer, training, and the development of regional trading platforms for fuels and petrochemicals.
Kenya’s energy sector is positioned for transformation. A government strategy to expand LPG access through common-user storage and handling facilities aligns closely with Sonatrach’s supply plans. The nation aims for universal access to clean cooking by 2028, targeting per-capita LPG consumption to hit 15 kilograms, up from current averages of roughly half that. Regulatory reforms increasing entry thresholds for licensed LPG dealers and promoting bulk import terminals are already underway. These initiatives are expected to reduce cost, improve safety, enhance reliability of supply, and strengthen local industry participation.
The MoU between Sonatrach and KNOC complements these domestic reforms by potentially providing a steady import source of LPG and petroleum products needed to balance Kenya’s supply gaps. Shared trading platforms and virtual storage could further leverage common user infrastructure, including the newly commissioned LPG bottom-loading facility in Mombasa and proposed bulk handling terminals. Such infrastructure scales are critical to reduce shipping and handling costs, bring down end-user prices, and make energy more accessible in rural areas.
Delegates during the agreement signing btn Sonatrach and KNOC at IATF2025 in Algeria
