Kenya to construct bulk cooking gas storage facility

The Kenya Pipeline Company (KPC) is about to construct a cooking gasoline storage facility on the Kenya Petroleum Refineries Ltd (KPRL). The transfer is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the nation, increasing competitors among oil marketers and, in turn, bringing down the value of the gasoline.
The facility can additionally be anticipated to enable gamers to import cooking gas through the Open Tender System (OTS), a gas importation mechanism supervised by the Petroleum Ministry that contracts oil corporations with the bottom bids to import petroleum merchandise on behalf of the industry. The bulk storage facility, to be owned by the government, might additionally usher in an period of value controls for cooking gas.
KPC has started the search for an organization that it stated would supply engineering designs for the proposed facility, which can inform the method of choosing a contractor for the development works.
The consultant may also undertake environmental influence evaluation as nicely 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 through rail siding, truck loading, and bottling services,” mentioned KPC in tender paperwork.
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“KPC is desirous of implementing storage capacity of a minimal of 25,000 metric tonnes within the medium time period and 50,000 metric tonnes in the lengthy run topic to affirmation after undertaking the LPG demand examine.” 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 pressure gauge 4 นิ้ว , a examine jointly conducted by the Ministry of Energy and The World Bank really helpful that LPG storage amenities with total capacities of 8700 tonnes be set up in the three cities including Nairobi, Mombasa and Kisumu, and the two main towns of Eldoret and Nakuru.
Meanwhile, KPC is in search of a transaction adviser to help it conclude the takeover of the defunct KPRL because it seeks to boost its storage capacity. KPRL was placed beneath the management 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 45 tanks with a total storage capability of 484 million litres. About 254 million litres is reserved for refined merchandise whereas 233 million litres is for crude oil.
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