The Kenya Pipeline Company (KPC) is about to construct a cooking gasoline storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The move is predicted to ease the importation of Liquefied Petroleum Gas (LPG) into the country, increasing competition among oil entrepreneurs and, in turn, bringing down the price of the gasoline.
The facility can be expected to enable gamers to import cooking gasoline by way of the Open Tender System (OTS), a gasoline importation mechanism supervised by the Petroleum Ministry that contracts oil firms with the lowest bids to import petroleum products on behalf of the industry. The bulk storage facility, to be owned by the federal government, might additionally usher in an period of price controls for cooking fuel.
KPC has began the search for an organization that it said would provide engineering designs for the proposed facility, which will inform the process of choosing a contractor for the development works.
The advisor will also undertake environmental influence evaluation as properly as LPG demand within the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for dispensing LPG to involved parties through rail siding, truck loading, and bottling services,” stated KPC in tender paperwork.
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“KPC is desirous of implementing storage capacity of no less than 25,000 metric tonnes within the medium term and 50,000 metric tonnes in the lengthy term topic to confirmation after endeavor the LPG demand research.” The facility at KPRL, which KPC runs through a lease, shall be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a examine jointly performed by the Ministry of Energy and The World Bank beneficial that LPG storage services with total capacities of 8700 tonnes be arrange within the three cities including Nairobi, Mombasa and Kisumu, and the two major towns of Eldoret and Nakuru.
Meanwhile, KPC is looking for a transaction adviser to assist it conclude the takeover of the defunct KPRL as it seeks to spice up its storage capability. KPRL was placed underneath 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.
KPRL has forty five tanks with a complete storage capability 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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