The Kenya Pipeline Company (KPC) is set 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 competition among oil entrepreneurs and, in flip, bringing down the value of the fuel.
The facility is also expected to allow gamers to import cooking gas via the Open Tender System (OTS), a fuel 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, could additionally usher in an period of worth controls for cooking gas.
KPC has began the search for a company that it said would provide engineering designs for the proposed facility, which will inform the method of choosing a contractor for the development works.
The consultant may also undertake environmental impact evaluation as well as LPG demand within the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for allotting LPG to involved parties through rail siding, truck loading, and bottling amenities,” 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 term and 50,000 metric tonnes in the long term topic to affirmation after endeavor the LPG demand examine.” The facility at KPRL, which KPC runs through a lease, will be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a research jointly performed by the Ministry of Energy and The World Bank recommended that LPG storage services with complete capacities of 8700 tonnes be arrange within the three cities together with Nairobi, Mombasa and Kisumu, and the 2 major towns of Eldoret and Nakuru.
Meanwhile, KPC is seeking a transaction adviser to help it conclude the takeover of the defunct KPRL because it seeks to boost its storage capability. KPRL was placed 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 capability of 484 million litres. About pressure gauge octa is reserved for refined merchandise whereas 233 million litres is for crude oil.
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