On April 20, 2022, Kenya Pipeline Company (KPC) concluded the takeover of the defunct State-owned Kenya Petroleum Refineries Limited (KPRL). This marks the second time the facility has exchanged hands in the past eight years, following a sale by Shell and British Petroleum Company (BP) to Indian investor Essar Energy Overseas Limited in 2016.
Essar Limited, which failed to revive the facility, relinquished its shares to the government after just six months of ownership, having acquired the facility at a cost of $5 million. The takeover coincides with the operationalisation of the New Kipevu Oil Terminal (KOT), which began a dry run this week at the port of Mombasa.
According to Kenya Energy Permanent Secretary Andrew Kamau, the acquisition is part of the government's strategy to ensure a steady supply of petroleum products in Kenya and other East African countries. He noted that the operationalisation of KOT will improve the time of ships docking to discharge fuel, reducing demurrage costs and leading to lower petroleum products prices.
Mr. Kamau further stated that the facility is set to become a region's petroleum products feeding hub, competing with Dar es Salaam, which has dominated the market for years. KPRL boasts 45 tanks with a total storage capacity of 484 million litres, with 254 million litres reserved for refined products and 233 million litres reserved for crude oil.
