Kenya to construct bulk cooking gas storage facility

The Kenya Pipeline Company (KPC) is ready to assemble a cooking gas storage facility on 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 marketers and, in flip, bringing down the price of the fuel.
The facility is also anticipated to allow players to import cooking gas by way of the Open Tender System (OTS), a gas importation mechanism supervised by the Petroleum Ministry that contracts oil companies with the bottom bids to import petroleum products on behalf of the business. เกจวัดco2 , to be owned by the federal government, might also usher in an era of value controls for cooking gas.
KPC has began the search for a company that it mentioned would offer engineering designs for the proposed facility, which can inform the method of selecting a contractor for the construction works.
The advisor will also undertake environmental impression evaluation as well as LPG demand in the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for dishing out LPG to involved events by way of rail siding, truck loading, and bottling services,” stated KPC in tender documents.
READ: Kenya leads East Africa in electrical energy entry
“KPC is desirous of implementing storage capacity of at least 25,000 metric tonnes within the medium term and 50,000 metric tonnes in the long term subject to affirmation after undertaking the LPG demand examine.” The facility at KPRL, which KPC runs via a lease, might be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a study jointly carried out by the Ministry of Energy and The World Bank recommended that LPG storage services with whole capacities of 8700 tonnes be arrange in the three cities together with Nairobi, Mombasa and Kisumu, and the 2 major towns of Eldoret and Nakuru.
Meanwhile, KPC is in search of a transaction adviser to assist it conclude the takeover of the defunct KPRL because it seeks to boost its storage capacity. KPRL was positioned beneath the management of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar didn’t revive the country’s solely oil refinery.
KPRL has forty five tanks with a total storage capability of 484 million litres. About 254 million litres is reserved for refined merchandise while 233 million litres is for crude oil.

Leave a Comment