The Kenya Pipeline Company (KPC) is set to construct a cooking gasoline storage facility on the Kenya Petroleum Refineries Ltd (KPRL). The transfer is predicted to ease the importation of Liquefied Petroleum Gas (LPG) into the country, rising competition amongst oil marketers and, in flip, bringing down the price of the gasoline.
The facility can also be anticipated to enable players to import cooking gasoline by way of the Open Tender System (OTS), a gasoline importation mechanism supervised by the Petroleum Ministry that contracts oil firms with the lowest bids to import petroleum products on behalf of the industry. The bulk storage facility, to be owned by the government, might also usher in an era of value controls for cooking gasoline.
KPC has started the search for a corporation that it said would provide engineering designs for the proposed facility, which will inform the method of choosing a contractor for the construction works.
The consultant may even undertake environmental impact assessment as properly 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 interested parties through rail siding, truck loading, and bottling facilities,” mentioned KPC in tender paperwork.
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“KPC is desirous of implementing storage capacity of no less than 25,000 metric tonnes within the medium term and 50,000 metric tonnes in the lengthy term subject to affirmation after undertaking the LPG demand research.” The facility at KPRL, which KPC runs through a lease, might be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a study jointly performed by the Ministry of Energy and The World Bank beneficial that LPG storage services with total capacities of 8700 tonnes be arrange within the three cities including Nairobi, Mombasa and Kisumu, and the 2 main cities of Eldoret and Nakuru.
Meanwhile, KPC is looking for a transaction adviser to assist it conclude the takeover of the defunct KPRL as it seeks to boost 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 did not revive the country’s only oil refinery.
KPRL has forty five 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.
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