Kenya to construct bulk cooking gasoline storage facility

Index (KPC) is set to assemble a cooking gas storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The transfer is predicted to ease the importation of Liquefied Petroleum Gas (LPG) into the country, growing competitors among oil entrepreneurs and, in flip, bringing down the value of the fuel.
The facility can additionally be anticipated to allow gamers to import cooking gas via the Open Tender System (OTS), a gas importation mechanism supervised by the Petroleum Ministry that contracts oil firms with the lowest bids to import petroleum products on behalf of the business. The bulk storage facility, to be owned by the federal government, may also usher in an period of price controls for cooking gasoline.
KPC has started the search for an organization that it mentioned would provide engineering designs for the proposed facility, which is ready to inform the method of choosing a contractor for the construction works.
The advisor will also undertake environmental impact assessment as properly as LPG demand in the Kenyan market. “ Professional proposed new facility is to be designed as a ‘common user’ facility for dispensing LPG to involved parties through rail siding, truck loading, and bottling facilities,” said KPC in tender paperwork.
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“KPC is desirous of implementing storage capability of at least 25,000 metric tonnes within the medium time period and 50,000 metric tonnes in the lengthy run topic to affirmation after undertaking the LPG demand study.” The facility at KPRL, which KPC runs by way of a lease, shall be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a examine jointly performed by the Ministry of Energy and The World Bank recommended that LPG storage amenities with whole capacities of 8700 tonnes be arrange in the three cities together with Nairobi, Mombasa and Kisumu, and the 2 main cities of Eldoret and Nakuru.
Meanwhile, KPC is seeking a transaction adviser to assist it conclude the takeover of the defunct KPRL because it seeks to spice up its storage capacity. KPRL was placed underneath 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.
KPRL has 45 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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