Cameroon Picks Sunon Asogli, China Energy for $312m Gas Plant

21 August 2025
Daba Finance (Abidjan)

TLDR

  • Cameroon has selected Sunon Asogli Power (Ghana) Ltd and China Energy Engineering Corporation Ltd to build the Limbe combined-cycle gas-fired power plant
  • The decision ends a decade-long search for a partner, after earlier attempts with Eranove and other firms stalled
  • The project, structured as a public-private partnership, will cost an estimated CFA 176 billion ($312 million)

Cameroon has selected Sunon Asogli Power (Ghana) Ltd and China Energy Engineering Corporation Ltd to build the Limbe combined-cycle gas-fired power plant and associated infrastructure in the country's southwest, the government announced August 20.

The decision ends a decade-long search for a partner, after earlier attempts with Eranove and other firms stalled. The award clears the way for contract signing, environmental studies, and financial close, according to the Ministry of Water and Energy.

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The project, structured as a public-private partnership, will cost an estimated CFA 176 billion ($312 million). The Cameroonian government will provide 26 billion CFA francs (15%), while Sunon Asogli and China Energy will fund the balance.

Construction is expected to begin in 2025 and conclude in 2029, delivering 350 megawatts of capacity. The new plant is expected to ease supply deficits in the southwest, coastal, and western regions and help Cameroon reach its 2030 target of 5,000 megawatts of installed capacity.

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Key Takeaways

Cameroon's Limbe project highlights both the scale of its energy deficit and its strategy to diversify generation capacity. With about 2,000 megawatts currently installed, demand far outstrips supply, constraining industrial growth and limiting electrification. By turning to gas-fired generation, the government aims to stabilize baseload supply while reducing dependence on hydropower, which has been vulnerable to climate variability. For Sunon Asogli, which operates gas plants in Ghana, and China Energy, a major global contractor, the project deepens their West African footprint. The deal also signals growing Chinese and Asian involvement in African gas-to-power projects, which are increasingly seen as transitional assets bridging fossil fuels and renewables. If delivered on time, the Limbe plant could transform energy availability in Cameroon's industrial southwest, improving competitiveness and supporting regional development goals. The success of the project will hinge on financing, execution discipline, and securing long-term gas supply agreements.

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