Kenya to construct bulk cooking gasoline storage facility

weksler ea14 (KPC) is about to construct a cooking fuel storage facility at the Kenya Petroleum Refineries Ltd (KPRL). The move is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the nation, rising competitors amongst oil marketers and, in flip, bringing down the value of the gas.
The facility can additionally be anticipated to allow gamers to import cooking gasoline via the Open Tender System (OTS), a gasoline importation mechanism supervised by the Petroleum Ministry that contracts oil firms with the lowest bids to import petroleum merchandise on behalf of the business. The bulk storage facility, to be owned by the federal government, may additionally usher in an era of price controls for cooking fuel.
KPC has started the search for an organization that it mentioned would supply engineering designs for the proposed facility, which will inform the method of selecting a contractor for the development works.
The advisor may also undertake environmental impression assessment as nicely as LPG demand in the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for allotting LPG to fascinated events via rail siding, truck loading, and bottling amenities,” stated KPC in tender paperwork.
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“KPC is desirous of implementing storage capacity of a minimum of 25,000 metric tonnes within the medium term and 50,000 metric tonnes in the long term subject to affirmation after endeavor the LPG demand examine.” The facility at KPRL, which KPC runs through a lease, will be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a study collectively performed by the Ministry of Energy and The World Bank recommended that LPG storage services with complete capacities of 8700 tonnes be arrange in the three cities together with Nairobi, Mombasa and Kisumu, and the 2 major towns of Eldoret and Nakuru.
Meanwhile, KPC is in search of a transaction adviser to assist it conclude the takeover of the defunct KPRL because it seeks to spice up its storage capacity. KPRL was positioned underneath the administration 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 forty five tanks with a complete 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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