Kenya Pipeline Company (KPC) has completed construction of four storage tanks at a cost of Sh5.3bn ($51m). The company has also announced the recent completion of the new $476m Mombasa-Nairobi oil pipeline.

The first batch of fuel on the new 450km Mombasa-Nairobi Pipeline has been successfully delivered to the KPC Nairobi depot paving way for the commissioning of the pipeline. The 20-inch Mombasa – Nairobi Pipeline is a Vision 2030 flagship project which seeks to ensure sustained, reliable and efficient transportation of petroleum products in the region and meet demand next 30 years.

The company has also completed construction of four new storage tanks that will provide sufficient capacity for receipt of higher volumes of products expected once Line 5 is commissioned. The four tanks will not only increase storage capacity in Nairobi by 133 million litres, but they will also enhance operational flexibility and increase tank turnaround for Kipevu Oil Storage Facility (KOSF) in Mombasa.

Speaking during the ceremony to receive Line 5 product and inspection of new storage tanks at the KPC Nairobi Terminal, Cabinet Secretary for Petroleum & Mining, John Munyes, said the new line will ensure timely transportation of petroleum and reduction in losses as experienced in the old pipeline.

He added: “As a result of the bigger storage capacity, the country and the region are now assured of security of supply but most importantly, there will be a reduction of demurrage charges because ships will not have to wait for long to dispense product. This will ultimately bring down the fuel prices for Kenyans.”.

KPC Managing Director, Joe Sang said the new pipeline will adequately serve the country and the region’s petroleum demand which is projected to rise to 11.4 billion liters in 2020.

Currently, KPC pumps 80 percent of all imported oil products in the country with the remaining 20 percent being transported by road.

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18th July 2018

18th July 2018