The Kenya Pipeline Company (KPC) is ready to construct a cooking fuel storage facility on the Kenya Petroleum Refineries Ltd (KPRL). The transfer is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the country, increasing competitors amongst oil entrepreneurs and, in turn, bringing down the value of the fuel.
The facility can additionally be expected to enable players 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 products on behalf of the business. The bulk storage facility, to be owned by the federal government, could additionally usher in an period of value controls for cooking gas.
KPC has started the search for a company that it mentioned would supply engineering designs for the proposed facility, which will inform the method of choosing a contractor for the development works.
The marketing consultant may also undertake environmental influence evaluation 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 fascinated events via rail siding, truck loading, and bottling facilities,” said KPC in tender paperwork.
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“KPC is desirous of implementing storage capability of a minimum of 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the long term subject to confirmation after undertaking the LPG demand study.” The facility at KPRL, which KPC runs by way of a lease, might be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a examine jointly carried out by the Ministry of Energy and The World Bank really helpful 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 cities of Eldoret and Nakuru.
Meanwhile, KPC is looking for a transaction adviser to help it conclude the takeover of the defunct KPRL because it seeks to spice up its storage capacity. KPRL was placed beneath the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar did not revive the country’s solely oil refinery.
KPRL has 45 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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