diaphragm seal (KPC) is about to construct a cooking fuel storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The move is anticipated to ease the importation of Liquefied Petroleum Gas (LPG) into the country, growing competition amongst oil entrepreneurs and, in flip, bringing down the worth of the fuel.
The facility can additionally be expected to allow gamers to import cooking gasoline 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 merchandise 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 fuel.
KPC has began the search for a corporation that it stated would provide engineering designs for the proposed facility, which can inform the method of selecting a contractor for the construction works.
The consultant will also undertake environmental impression evaluation as nicely as LPG demand within the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for allotting LPG to fascinated parties via rail siding, truck loading, and bottling facilities,” said KPC in tender documents.
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“KPC is desirous of implementing storage capability of a minimal of 25,000 metric tonnes in the medium time period and 50,000 metric tonnes in the long term subject to confirmation after endeavor the LPG demand research.” The facility at KPRL, which KPC runs by way of a lease, might be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a study jointly conducted by the Ministry of Energy and The World Bank beneficial that LPG storage facilities 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 in search of a transaction adviser to assist it conclude the takeover of the defunct KPRL as it seeks to boost its storage capability. KPRL was placed underneath the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar didn’t 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 products while 233 million litres is for crude oil.
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