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Kenya has announced its plans to construct the biggest import and storage gas facility in Mombasa. It also proposes to offer licenses to more private companies to compete with Tanzania.
Tanzania has been dominating the supply of liquefied petroleum gas (LPG) for years in the East Africa region. However, Kenya is gearing up to compete in this business with Tanzania. Kenya has announced its plans to construct the biggest import and storage gas facility in Mombasa. It also proposes to offer licenses to more private companies to compete with Tanzania. Kenya has recently banned imports of gas from Tanzania through the Namanga border.
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The 25,000 tonnes storage facility to be constructed by the Kenya Pipeline Company (KPC) will connect to the new Kipevu Oil Terminal 2 (KOT) at the port of Mombasa. KPC has hired a Pakistani firm, Petrochem Engineering Services to design LPG import and storage facility in Changamwe, Mombasa. About five private companies have applied to tap into the new Kipevu Oil Terminal 2. On completion, the project is expected to lead to speed up the loading of cooking gas for distribution by trucks which will help to cut demurrage cost. The faster loading is expected to lower the prices for LPG by 30 percent as oil marketing companies pass the benefits of lower demurrage costs to consumers.KPC admitted that the limited storage capacity in Mombasa and huge demurrage incurred by LPG ships escalated the final consumer price of bottled gas.
