The Kenya Pipeline Company (KPC) is set to assemble a cooking fuel storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The transfer is anticipated to ease the importation of Liquefied Petroleum Gas (LPG) into the country, growing competition among oil marketers and, in turn, bringing down the price of the gas.
The facility can additionally be expected to allow players to import cooking fuel via the Open Tender System (OTS), a fuel importation mechanism supervised by the Petroleum Ministry that contracts oil companies with the lowest bids to import petroleum merchandise on behalf of the trade. The bulk storage facility, to be owned by the government, could also usher in an period of worth controls for cooking gas.
KPC has started the search for an organization that it mentioned would offer engineering designs for the proposed facility, which will inform the method of choosing a contractor for the construction works.
The marketing consultant may also undertake environmental impact evaluation as well as LPG demand within the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for dishing out LPG to fascinated parties via rail siding, truck loading, and bottling amenities,” stated KPC in tender paperwork.
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“KPC is desirous of implementing storage capability of no less than 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the lengthy run subject to affirmation after endeavor the LPG demand research.” The facility at KPRL, which KPC runs by way of a lease, will be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a research collectively performed by the Ministry of Energy and The World Bank beneficial that LPG storage facilities with complete capacities of 8700 tonnes be set up within the three cities including Nairobi, Mombasa and Kisumu, and the 2 major towns of Eldoret and Nakuru.
Meanwhile, KPC is seeking a transaction adviser to help it conclude the takeover of the defunct KPRL as it seeks to spice up its storage capacity. เกจไนโตรเจนsumo was placed underneath the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar did not revive the country’s solely oil refinery.
KPRL has forty five tanks with a total storage capability of 484 million litres. About 254 million litres is reserved for refined products while 233 million litres is for crude oil.
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