The Kenya Pipeline Company (KPC) is ready to assemble a cooking gasoline storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The move is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the country, rising competitors among oil entrepreneurs and, in turn, bringing down the price of the fuel.
The facility is also anticipated to allow gamers to import cooking gasoline through 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 products on behalf of the trade. The bulk storage facility, to be owned by the federal government, may additionally usher in an era of value controls for cooking gas.
KPC has started the search for an organization that it stated would provide engineering designs for the proposed facility, which can inform the method of selecting a contractor for the construction works.
The marketing consultant will also undertake environmental impact evaluation in addition to LPG demand in the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for dispensing LPG to interested parties by way of rail siding, truck loading, and bottling amenities,” stated KPC in tender paperwork.
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“KPC is desirous of implementing storage capacity of a minimal of 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the lengthy term topic to confirmation after undertaking the LPG demand study.” The facility at KPRL, which KPC runs through a lease, might be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a study jointly performed by the Ministry of Energy and The World Bank recommended that LPG storage amenities with whole capacities of 8700 tonnes be set up within the three cities together with Nairobi, Mombasa and Kisumu, and the two main cities of Eldoret and Nakuru.
Meanwhile, KPC is in search of a transaction adviser to help it conclude the takeover of the defunct KPRL as it seeks to boost its storage capability. KPRL was positioned underneath 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.
KPRL has forty five tanks with a complete storage capacity of 484 million litres. About 254 million litres is reserved for refined merchandise while 233 million litres is for crude oil.