The Energy and Petroleum Regulatory Authority (EPRA) has revealed that it is considering giving a licence to Tanzanian firm Taifa Gas Investment to construct a liquefied petroleum gas (LPG) import and storage terminal in Mombasa.

The announcement comes after President William Ruto held bilateral talks with her Tanzanian counterpart Samia Suluhu.

EPRA said it would review an application afresh by Taifa Gas after an earlier undisclosed “shortcoming” saw the firm denied a licence.

The firm, which is the largest LPG supplier in Tanzania, had earlier sent an environmental impact assessment study report to Nema for approval.

Taifa’s entry into the Kenyan market promises a major disruption in the fast-growing and lucrative cooking gas supply chain that a few firms dominate.

In Tanzania, Taifa Gas currently sells a fully-filled six-kilogramme gas cylinder, together with a grill and burner, at TSh40,000. Such prices in Kenya could disrupt the market.

At the same time, Kenya and Tanzania agreed to start working on a gas pipeline from Dar es Salaam to Mombasa and later reroute to Nairobi.

Dr Ruto said there was a need to expedite the gas pipeline project from Dar es Salaam to Mombasa as part of efforts to lower energy tariffs.