26 August 2014

Kenya: East Africa Spectre Seeks Clearance for LPG Factory

A company linked to the Odinga family plans to set up an LPG filling and oil depot at Nairobi's Embakasi area as demand for cooking gas rises.

Demand for the liquefied petroleum gas in the country is expected to increase steadily and several firms in the oil and gas industry have recently embarked on building inland LPG filling depots to capitalise on the projected boom.

In a notice published Friday in the Kenya Gazette, National Environmental Management Authority has invited public participation for a proposed LPG filling depot by East Africa Spectre Limited.

"The proponent (East Africa Spectre Limited) is proposing to develop an LPG filling plant, white oil depot and offices in Embakasi, Nairobi County," said Nema in the public notice.

"The development will include five LPG bullets of 100 tons each, three oil tanks (AGO-10 Million litres, PMS-10 million litres, IK-five million litres), White oil Loading gantry complete with loading arms, pumps, LPG road tanker offloading point, three manual cylinder filling points, LPG cylinders offloading zone, a segregated drainage system for the management of storm water and potentially, contaminated waste water, firefighting facilities and approved pipe and pumping systems."

According to Kenya National Bureau of Statistics, the quantity of domestic LPG consumed from year 2010, 2011, and 2012 increased steadily from 87.8 to 91.6 to 93.6 metric tonnes respectively and then decreased to 92.9 metric tonnes in 2013. In 2013, the data shows that LPG had a share of 2.5 per cent in the overall petroleum fuel market, while kerosene earned higher at eight per cent.

The Energy ministry estimates that the country's annual LPG usage will rise to 735,217 mt by 2035 if supply problems are resolved.

Kenya Pipeline Company plans to build a storage facility of 2,200 mt in Nairobi, National Oil has also set up a storage and filling capacity recently with a capacity of 130mt.

In 2012, market leader in LPG Total built two bulk storage tanks in Industrial area Nairobi. Hass petroleum and KenolKobil are also working on similar installations.

A study done by a British firm last year on the LPG industry proposed increase of inland storage facilities with cylinder filling plants in all major towns and the three cities in the country.


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