Kenya to construct bulk cooking fuel storage facility

The Kenya Pipeline Company (KPC) is ready to assemble a cooking gas storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The transfer is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the country, increasing competition among oil marketers and, in flip, bringing down the price of the gasoline.
The facility can be expected to allow gamers to import cooking fuel through the Open Tender System (OTS), a gas importation mechanism supervised by the Petroleum Ministry that contracts oil corporations with the bottom bids to import petroleum products on behalf of the business. The bulk storage facility, to be owned by the federal government, might also usher in an era of worth controls for cooking gasoline.
Extraordinary has started the search for a company that it mentioned would provide engineering designs for the proposed facility, which is ready to inform the method of selecting a contractor for the development works.
The consultant may also undertake environmental impact assessment in addition to LPG demand within the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for allotting LPG to fascinated events through rail siding, truck loading, and bottling services,” stated KPC in tender paperwork.
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“KPC is desirous of implementing storage capacity of at least 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the lengthy run topic to confirmation after enterprise the LPG demand study.” The facility 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 examine collectively conducted by the Ministry of Energy and The World Bank beneficial that LPG storage services with total capacities of 8700 tonnes be arrange in the three cities including Nairobi, Mombasa and Kisumu, and the two main towns of Eldoret and Nakuru.
Meanwhile, KPC is seeking a transaction adviser to assist it conclude the takeover of the defunct KPRL as it seeks to spice up its storage capability. KPRL was placed under the management 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 forty five tanks with a total storage capability 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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