The Kenya Pipeline Company (KPC) is about to construct a cooking gasoline storage facility on the Kenya Petroleum Refineries Ltd (KPRL). The move is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the country, rising competition amongst oil entrepreneurs and, in turn, bringing down the worth of the gasoline.
The facility can be anticipated to enable players to import cooking gas 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 merchandise on behalf of the trade. The bulk storage facility, to be owned by the government, may also usher in an era of price controls for cooking gas.
KPC has started the search for a corporation that it stated would offer engineering designs for the proposed facility, which will inform the method of choosing a contractor for the development works.
The marketing consultant may even undertake environmental influence assessment as nicely as 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 parties via rail siding, truck loading, and bottling facilities,” stated KPC in tender paperwork.
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“KPC is desirous of implementing storage capability of no less than 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the lengthy term topic to confirmation after undertaking the LPG demand examine.” pressure gauge 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 research jointly conducted by the Ministry of Energy and The World Bank recommended that LPG storage services with whole capacities of 8700 tonnes be arrange within the three cities together with Nairobi, Mombasa and Kisumu, and the two main 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 boost its storage capacity. KPRL was positioned underneath the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar didn’t revive the country’s only oil refinery.
KPRL has forty five tanks with a total storage capability of 484 million litres. About pressure gauge 10 bar is reserved for refined merchandise whereas 233 million litres is for crude oil.