The Kenya Pipeline Company (KPC) is set to construct a cooking gas storage facility at the Kenya Petroleum Refineries Ltd (KPRL).
The facility is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the country, increasing competition among oil marketers and, in turn, bringing down the cost of the fuel.
According to KPC, the facility will enable players to import cooking gas through the Open Tender System (OTS), a fuel importation mechanism supervised by the Petroleum Ministry that contracts oil firms with the lowest bids to import petroleum products on behalf of the industry.
‘The proposed new facility is to be designed as a ‘common user’ facility for dispensing LPG to interested parties through rail siding, truck loading, and bottling facilities,’ said KPC in tender documents.
The facility at KPRL, which KPC runs through a lease, will be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
‘KPC is desirous of implementing storage capacity of at least 25,000 metric tonnes in the medium term and 50,000 metric tonnes in the long term subject to confirmation after undertaking the LPG demand study,’ KPC added.
