The Kenya Pipeline Company (KPC) is about to assemble a cooking fuel 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, increasing competitors amongst oil marketers and, in turn, bringing down the value of the fuel.
The facility is also expected to enable players to import cooking gas via the Open Tender System (OTS), a fuel importation mechanism supervised by the Petroleum Ministry that contracts oil companies with the bottom bids to import petroleum merchandise on behalf of the trade. The bulk storage facility, to be owned by the government, might additionally usher in an period of price controls for cooking gas.
KPC has began the search for an organization that it stated would offer engineering designs for the proposed facility, which is in a position to inform the method of selecting a contractor for the development works.
The advisor will also undertake environmental influence evaluation as well as LPG demand in the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for dispensing LPG to involved 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 much less than 25,000 metric tonnes within the medium time period and 50,000 metric tonnes in the lengthy run topic to confirmation after enterprise the LPG demand research.” 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 research jointly conducted by the Ministry of Energy and The World Bank beneficial that LPG storage facilities with total capacities of 8700 tonnes be set up within the three cities together with Nairobi, Mombasa and Kisumu, and the two main towns of Eldoret and Nakuru.
Meanwhile, KPC is seeking a transaction adviser to assist it conclude the takeover of the defunct KPRL because it seeks to spice up its storage capacity. KPRL was positioned under the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar didn’t revive the country’s only oil refinery.
ไดอะแฟรม ซีล 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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