Kenya is reportedly in advanced talk with Asharami,a subsidiary of Nigerian energy giant,Sahara Group Ltd.,to co-build East Africa’s Biggest LPG Storage Facility. Strong sources familiar with this plan, proposed facility would have the capacity of 30,000 tons,this capacity will aid boost Kenya’s LPG storage capabilities.
Co-forming a joint venture with Asharami Synergy plc revealed to Bloomberg that the deal will enable state-owned Kenya pipeline to build the common user terminal set to be East Africa’s biggest LPG storage and bottling facility in the port city Of Mombasa.
The Energy and Petroleum Regulatory Authority (EPRA) has proposed formation of joint national-county government teams to implement the zoning of Liquefied petroleum gas (LPG) and Petroleum facilities.
EPRA Director General Daniel Kiptoo affirmed that the joint teams will oversee surveillance and the enforcement of measures aimed at promoting safety in the sector following a review on land-use approvals allowing construction of residential facilities within industrial zones.
“We ask county governments to collaborate with us in coming up with clear guidelines on exclusive zoning and reservation of land for setting up new petroleum and gas facilities away from densely populated areas,” said Kiptoo EPRA Director General during a sensitisation workshop attended by county energy executives and departmental heads.
Construction Period of the East Africa’s Biggest LPG Storage Facility
The facility estimated to take 2-years to build will be financed by Asharami,while land project located on the port-side will be provided with Kenya pipeline Co.
Kenya pipeline company manager director Joe Sang also told Bloomberg the process of on boarding a private sector company for the cooking-gas facility is ongoing while a spokesperson for Lagos-based on Asharami,this provided warehousing and logistics terminals in the downstream oil and gas sector across Nigeria and other nations in Africa,refused to comment.
Significance
If finalized,this collaboration,would mark a highly significant step for Kenya’s energy sector,potentially enhancing its LPG security and accessibility.
A clean-burning fuel,LPG,are highly gaining popularity in Kenya as a as more friendly environmental alternative to the traditional fuels like firewood and charcoal.The increased storage capacity would lead to steadier LPG supplies and it will highly lower prices for Kenyan consumers.
This talk between Kenya and Sahara are still ongoing,and details regarding East Africa’s Biggest LPG Storage Facility investment and timeline are yet to be finalised.This will highly increase collaboration signifies Kenya’s commitment to improving its cleaner cooking solutions for its citizens and LPG infrastructure. with estimated recoverable gas resources of around 57 trillion cubic feet (tcf), Tanzania will feature as part of an East African regional spotlight at Invest in African Energy (IAE) 2024, as the country seeks partners across various exploration, development and processing activities.
Kenya and Tanzania on the Race of becoming East Africa’s Major Oil Importer and Distributor
Since discovering large volumes of offshore gas, Tanzania has initiated plans to become a major LNG exporter. The country’s flagship Tanzania LNG project – set to process gas from fields operated by Equinor, Shell and ExxonMobil, producing 10 million metric tons per year – is awaiting the signing of a host government agreement that would enable the start of development.
Kenya and Tanzania are competing to position their facilities as the preferred entry points to the region, particularly inland markets in landlocked nations like Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo. Uganda, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo (DRC) import a huge percentage of their petroleum products using trucks through Kenya. Refined petroleum, which forms 13 per cent of Kenya’s total exports, is the country’s third-largest export after tea and cut flowers.
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