Gas-Penetration
The Kenya Ports Authority (KPA) and Kenya Pipeline Company (KPC) have vowed to work together to facilitate the penetration of Liquefied Petroleum Gas (LPG) in the nook and cranny of the country in line with the government commitment.
KPA Managing Director (MD) Capt. William Ruto said during the signing of a Service Level Agreement (SLA) between the two state corporations that they will use the Kipevu Oil Terminal 2 (KOT 2) in the offloading of LPG.
“The facility is capable of handling four ships at any given time. All products can be offloaded simultaneously in this facility which also reduces the cost of doing business and in terms of demurrages that this country has been paying a lot of demurrages,” said Capt. Ruto.
KOT 2, he added can offload up to 8000 metric tons per hour. The facility serves landlocked countries, and 50 per cent of petroleum products are from landlocked countries. Private firms can connect to KOT2 through a common user manifold.
KPC MD Joe Sang said in partnership with the private sector they will construct a four-kilometre pipeline from the common manifold to the Kenya Petroleum Refineries Limited (KPRL) 377-acre land in Changamwe.
“The pipeline will have a 24-inch diameter pipe to the bulk import facility with a capacity of 30,000 metric tons that will be set up in partnership with the private sector,” stated MD Sang.
KPC has developed a master plan to establish KPRL as a trading hub for the region. “We want to serve close to 12 countries in the larger East African region from Ethiopia down to South Africa,” said Sang.
In line with the government’s promise to increase the accessibility of LPG. KPC is targeting five million homes to access subsidized LPG by 2027.
“Most of our households cannot afford. The price of the six kilogramme LPG is close to 2500 including the cylinder and the gas itself. We want to see a reduction so that it is affordable not only for Kenya but also for the region,” stated the KPC MD.
KPC will also set up storage facilities in the hinterlands to support accessibility to LPG.
The MD further revealed that on average 15,000 Kenyans die as a result of health-related complications brought about by the use of unsafe cooking habits. To improve tree cover, KPC in partnership with the Kenya Forest Service targets to plant five million trees in line with the Presidential green agenda.
In Jomvu Creek, KPC has so far planted 440,000 trees. “Our ambition is to be able to do 500,000 every year for the next ten years,” said Sang. KPC Chairman Faith Boinett said the KOT 2 will enable KPC to open KPRL to bunkering and penetration to the region.
“There is a conversation between Uganda and Kenya to have a pipeline all the way to DRC, with this we will be able to have short turnaround time in terms of pushing the products efficiently and be able to meet the demands of the market,” she said.