Kenya to construct bulk cooking gasoline storage facility

The Kenya Pipeline Company (KPC) is ready to construct a cooking gasoline storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The transfer is anticipated to ease the importation of Liquefied Petroleum Gas (LPG) into the nation, increasing competitors amongst oil marketers and, in flip, bringing down the value of the fuel.
The facility can also be anticipated to enable gamers to import cooking gas through the Open Tender System (OTS), a fuel importation mechanism supervised by the Petroleum Ministry that contracts oil firms 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 also usher in an period of worth controls for cooking gas.
KPC has started the search for an organization that it stated would offer engineering designs for the proposed facility, which is able to inform the method of selecting a contractor for the development works.
The advisor will also undertake environmental impact assessment 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 fascinated events through rail siding, truck loading, and bottling services,” mentioned KPC in tender documents.
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“KPC is desirous of implementing storage capability of at least 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the lengthy term topic to confirmation 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 research collectively carried out by the Ministry of Energy and The World Bank really helpful that LPG storage facilities with whole capacities of 8700 tonnes be arrange within 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 assist it conclude the takeover of the defunct KPRL because it seeks to spice up its storage capacity. KPRL was positioned beneath the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar failed to revive the country’s solely oil refinery.
KPRL has 45 tanks with a complete storage capacity of 484 million litres. About Forgotten is reserved for refined products while 233 million litres is for crude oil.
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