The Kenya Pipeline Company (KPC) is set to assemble a cooking gas storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The move is predicted to ease the importation of Liquefied Petroleum Gas (LPG) into the nation, growing competition among oil entrepreneurs and, in turn, bringing down the price of the fuel.
The facility can also be expected to enable gamers to import cooking fuel through 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 industry. The bulk storage facility, to be owned by the federal government, might also usher in an period of price controls for cooking gasoline.
KPC has began the search for a corporation 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 advisor will also undertake environmental impact assessment in addition to LPG demand within the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for dishing out LPG to interested parties by way of rail siding, truck loading, and bottling amenities,” stated KPC in tender documents.
READ: Kenya leads East Africa in electricity access
“KPC is desirous of implementing storage capability of a minimal of 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the long run subject to affirmation after undertaking the LPG demand study.” The facility at KPRL, which KPC runs via a lease, shall be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In ตัววัดแรงดันน้ำ , a examine jointly performed by the Ministry of Energy and The World Bank beneficial that LPG storage services with whole capacities of 8700 tonnes be arrange within the three cities together with Nairobi, Mombasa and Kisumu, and the two major cities of Eldoret and Nakuru.
Meanwhile, KPC is looking for a transaction adviser to help it conclude the takeover of the defunct KPRL as it seeks to spice up its storage capacity. KPRL was positioned 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 45 tanks with a total storage capacity of 484 million litres. About 254 million litres is reserved for refined merchandise while 233 million litres is for crude oil.
Share