Kenya to assemble bulk cooking gas storage facility

The Kenya Pipeline Company (KPC) is about to assemble a cooking gas storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The move is anticipated to ease the importation of Liquefied Petroleum Gas (LPG) into the country, rising competitors amongst oil entrepreneurs and, in flip, bringing down the price of the fuel.
The facility is also expected to allow gamers to import cooking gasoline via the Open Tender System (OTS), a gas importation mechanism supervised by the Petroleum Ministry that contracts oil firms with the lowest bids to import petroleum products on behalf of the trade. The bulk storage facility, to be owned by the federal government, may additionally usher in an era of worth controls for cooking gasoline.
KPC has began the search for an organization that it stated would provide engineering designs for the proposed facility, which is in a position to inform the process of selecting a contractor for the development works.
The advisor will also undertake environmental impression assessment as properly as LPG demand in the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for dishing out LPG to fascinated events via rail siding, truck loading, and bottling facilities,” stated KPC in tender documents.
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“KPC is desirous of implementing storage capacity of a minimum of 25,000 metric tonnes within the medium time period and 50,000 metric tonnes in the lengthy term subject to confirmation after undertaking the LPG demand study.” The facility at KPRL, which KPC runs through a lease, will be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a examine collectively performed by the Ministry of Energy and The World Bank really helpful that LPG storage amenities with total capacities of 8700 tonnes be set up in the three cities together with Nairobi, Mombasa and Kisumu, and the 2 main towns of Eldoret and Nakuru.
Meanwhile, KPC is in search of a transaction adviser to assist it conclude the takeover of the defunct KPRL as it seeks to spice up its storage capacity. KPRL was placed under the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar failed to revive the country’s only oil refinery.
List has forty five tanks with a total storage capacity of 484 million litres. About 254 million litres is reserved for refined products whereas 233 million litres is for crude oil.
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