The Kenya Pipeline Company (KPC) is ready to construct a cooking gas storage facility on the Kenya Petroleum Refineries Ltd (KPRL). The transfer is anticipated to ease the importation of Liquefied Petroleum Gas (LPG) into the nation, increasing competition amongst oil entrepreneurs and, in turn, bringing down the price of the gasoline.
The facility is also expected to allow players to import cooking gasoline via the Open Tender System (OTS), a gasoline importation mechanism supervised by the Petroleum Ministry that contracts oil companies with the bottom bids to import petroleum products on behalf of the trade. The bulk storage facility, to be owned by the federal government, could also usher in an era of price controls for cooking gas.
KPC has began the search for an organization that it stated would provide engineering designs for the proposed facility, which will inform the process of selecting a contractor for the development works.
The marketing consultant may also 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 dispensing LPG to fascinated events via rail siding, truck loading, and bottling facilities,” stated KPC in tender documents.
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“KPC is desirous of implementing storage capability of no much less than 25,000 metric tonnes within the medium term and 50,000 metric tonnes in the long run subject to confirmation after enterprise the LPG demand examine.” pressure gauge 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 collectively conducted by the Ministry of Energy and The World Bank beneficial that LPG storage facilities with complete capacities of 8700 tonnes be set up within the three cities including Nairobi, Mombasa and Kisumu, and the two main towns 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 spice up its storage capability. 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 only oil refinery.
pressure gauge 10 bar has 45 tanks with a complete storage capability of 484 million litres. About 254 million litres is reserved for refined products whereas 233 million litres is for crude oil.
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