East African Business Week (Kampala)
28 June 2008
Kenya could start exporting Liquefied Petroleum Gas (LPG) products to the East African Region countries in two years time, Energy minister Kiraitu Murungi has said.
He said this will come after the successful completion of LPG storage, distribution and dispensing facilities in various towns with the pioneer ones expected at the Kenyan coast by end of this year.
The minister said the completion of the LPG project is expected to reduce the cost of the commodity in the region and shift over reliance on electricity which is currently in short supply in the region. Kiraitu said the government was keen on building capacity for LPG import facilities to meet the demand for alternative sources of energy both in the country and the region.
"The government of Kenya has a deliberate policy to facilitate adequate supply and distribution of LPG in all parts of the country and the region at large," said the minister.
He said the use of LPG in the region had all along been constrained by the lack of LPG import facilities in the Mombasa refinery and a weak LPG infrastructure within the region.
After the enhancement of the storage and distribution facilities in Mombasa, the government announced a rollout of the same in major towns including Kisumu, Nakuru, Eldoret and Sagana.
Kiraitu said the Mombasa LPG facility is being financed by the Kenya Pipeline Company (KPC) and the Kenya Petroleum Refineries Limited (KPRL) on behalf of the government to the tune of 50 per cent while private sector players are expected to take up the remaining 50 per cent stake.
An international tender for the project has so far been advertised with several firms reported to have developed interest in the lucrative venture.
The project is expected to involve pipelines to transport gas from the jetty LPG terminal with a pipeline link between existing refinery and the new LPG terminal.
It will also come with a 6700 metric tonne bullet for LPG storage and rail and road truck loading facilities. It will have a cylinder filling plant on completion.
Another LPG facility planned for Nairobi would be located at Athi River and financed by KPV and Bharat Petroleum Company of India.
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