The Kenya Pipeline Company (KPC) is ready to assemble a cooking fuel storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The transfer 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 additionally be expected to allow gamers to import cooking gasoline through the Open Tender System (OTS), a gasoline importation mechanism supervised by the Petroleum Ministry that contracts oil firms with the bottom bids to import petroleum merchandise on behalf of the industry. The bulk storage facility, to be owned by the government, may also usher in an era of value controls for cooking fuel.
KPC has started the search for a company that it mentioned would provide engineering designs for the proposed facility, which will inform the method of selecting a contractor for the development works.
The advisor may even undertake environmental impression 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 fascinated parties through rail siding, truck loading, and bottling amenities,” mentioned KPC in tender documents.
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“KPC is desirous of implementing storage capacity of a minimum of 25,000 metric tonnes in the medium term and 50,000 metric tonnes in the lengthy run subject to affirmation after enterprise 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 examine collectively performed by the Ministry of Energy and The World Bank beneficial that LPG storage facilities with whole capacities of 8700 tonnes be set up in the three cities including Nairobi, Mombasa and Kisumu, and the 2 main towns of Eldoret and Nakuru.
Meanwhile, KPC is seeking 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 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 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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