Continental Focus, International Reach

Kenya to Expand LPG Storage

Wednesday, February 6, 2008

 

According to the Kenyan government, the private sector has shown a growing interest in constructing a Liquefied Petroleum Gas (LPG) storage facility. The project, which has been on the books for four years, will be held 50% by the government and the rest spread throughout private sector companies.

Previously the government had wanted the Mombassa-based oil refinery and the Kenya Pipeline Corporation (KPC) to form a joint venture to build the storage and handling facility, however, this plan failed due to various circumstances and the government turned to the private sector.

The tender for the construction of the gas plant has attracted a number of bidders including Triton, Prasanth Projects Ltd., Bharat Petroleum, Kenya Shell, Metro Petroleum, and Moco Petroleum.

The construction of the plant will include an LPG import handling, storage, loading and bottling facility to be located in Mombassa. The LPG import handling facility will be located at Kipevu Oil Jetty with a transfer pipeline linking it to the bulk storage facility with a capacity of 6,700 tons, and a cylinder filling plant in Mombassa. There will also be an inland storage facility located near Nairobi, with bottling facilities scattered throughout the country.  


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