A total of Sh 17.7 billion is expected to be spent on the establishment of a cooking gas handling and storage facility in Changamwe by Kenya Pipeline.
The revelation was made by the state corporation in an environmental impact assessment report. The report serves as an early estimation of the entire project cost prior to the front-end engineering design process.
The project’s proponent has used competent consultants to provide a preliminary cost estimate. Part of the report submitted by the National Environment Management Authority (Nema) states that the project is expected to cost the proponent Kshs. 17,731,000,000 to carry out.
R&E Modern Technologies and Petrochem Engineering Services have both been engaged by KPC as consultants for the undertaking. Both companies are based in Pakistan. A new 30,000 metric ton LPG facility will also be installed as part of the project. It will primarily be used to receive LPG from ships berthed at the Kipevu Oil Terminal jetty.
Why Kenya Pipeline is setting up the cooking gas handling and storage facility in Changamwe
The long-term objective of the project is to boost household use of clean cooking fuels to 42% by 2030. According to KPC, Kenya’s consumption of LPG has been increasing, showing a growing trend. To ensure that the objective goal of 15 kilograms per capita is not missed by 2030, the country must quickly employ new measures, according to KPC’s project notes.
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The handling and storage facility will serve as an improvement to the existing infrastructure for LPG importation, distribution, and storage, with the aim of assuring a reliable supply chain, reduced landing costs due to economies of scale, as well as the abolition of monopolies.
The current 37,470 metric tons of LPG storage capacity in Kenya will rise to 67,470 metric tons. This space is currently represented by a storage facility at Kenya Petroleum Refineries Limited. The project is expected to provide jobs for both skilled and unskilled people. The facility is also expected to speed up LPG loading for distribution.