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Kenya: Work begins on US$ 52m Nairobi pipeline terminal expansion

Kenya Pipeline Company’s (KPC)fuel terminal in Nairobi is set to undergo a US$ 52m expansion  involving construction of a 450-kilometre pipeline to enable it hold extra petroleum products once the new Mombasa pipeline starts functioning in 2016. It will be completed within 24 months according to Jacinta Sekou, a KPC’s spokesperson.

The construction, which also involves developing four storage tanks with a capacity of 133.52 million litres, will be undertaken by a consortium led by India’s Prashanth Project Ltd and Kenya’s Nyoro Construction is part of the consortium.

The construction will lead to new tanks that will hold 133.52 million litres, comparable to 22 per cent of current Kenya’s Pipeline total national capacity of 612.32 million litres.

“The project is ongoing and is expected to be completed within 24 months,” Jacinta Sekou, KPC’s spokesperson said.

She further explained that, in addition to increasing capacity when Mombasa-Nairobi pipeline becomes functional, the expansion is expected to provide a channel for tank maintenance when they fail, and help maintain adequate stocks for petroleum products to moderate the economy from product outages when there are importation delays in importation or failure of the system.

Recently, KPC has called for bids for funding of construction of the new pipeline, which will run 450-kilometre. The Kenyan government is seeking up to US$ 52m in loans to pay for the building of the fuel pipeline.

The Nairobi terminal is currently the second largest with a capacity of 100,528 cubic metres after the Kipevu oil storage facility that holds 326,333 cubic metres of petroleum products. Kipevu oil terminal expansion project in Mombasa has also been started.

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