INDUSTRYGAUGE LOGO ORI

Kenya to assemble bulk cooking gasoline storage facility

The Kenya Pipeline Company (KPC) is set to assemble a cooking gasoline storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The transfer is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the nation, increasing competitors amongst oil marketers and, in flip, bringing down the price of the gasoline.
The facility can be anticipated to enable players to import cooking gasoline by way of the Open Tender System (OTS), a gasoline importation mechanism supervised by the Petroleum Ministry that contracts oil corporations with the bottom bids to import petroleum merchandise on behalf of the trade. The bulk storage facility, to be owned by the federal government, could additionally usher in an period of value controls for cooking gas.
KPC has started the search for an organization that it stated would supply engineering designs for the proposed facility, which will inform the process of choosing a contractor for the construction works.
The advisor 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 dispensing LPG to interested events through rail siding, truck loading, and bottling services,” mentioned KPC in tender documents.
READ: Kenya leads East Africa in electrical energy access
“KPC is desirous of implementing storage capability of at least 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the long run subject to confirmation after undertaking the LPG demand study.” เกจวัดแรงดัน300psi at KPRL, which KPC runs via a lease, will 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 recommended that LPG storage services with complete capacities of 8700 tonnes be set up within the three cities together with Nairobi, Mombasa and Kisumu, and the 2 major cities 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 boost 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 did not revive the country’s only oil refinery.
KPRL has 45 tanks with a complete storage capability of 484 million litres. About 254 million litres is reserved for refined products while 233 million litres is for crude oil.
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