Mombasa-Nairobi Petroleum Pipeline in Kenya

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The Mombasa-Nairobi Petroleum Pipeline Project has successfully completed its rehabilitation works and is currently operational. In 2018, the first batch of fuel on the new 450-kilometer pipeline was delivered to the KPC Nairobi depot. Moreover, the US$350 million project also had the construction of four new storage tanks to provide sufficient capacity,

While commenting on the project, John Munyes said that the Mombasa-Nairobi Petroleum Pipeline Project will ensure the timely transportation of petroleum. Furthermore, the Cabinet Secretary for Petroleum & Mining also said that it will reduce losses that were experienced while the old pipeline was in use.

Kenya to build another petroleum products pipeline

Reported On 2 April 2015

Kenya: Nairobi-Mombasa petroleum pipeline set for rehabilitation

The 450km Nairobi-Mombasa petroleum pipeline, was built in 1976. It is due for rehabilitation after an audit had shown immense shortcomings that are compromising safety and performance. The aging pipeline has in the past, had raptures. Hence compromising on reliability of the movement of petroleum products from Mombasa to Nairobi.

“The latest in-line inspection of the pipeline made use of the magnetic flux leakage technique. The results had shown the old pipeline’s degradation both internal and external. Alongside, metal loss defects that need repairing, in order to maintain the pipeline’s structural integrity for safe operation,” Kenya Pipeline Company (KPC) said. KPC is seeking a contractor to carry out major repair works on the pipeline.

The audit reveals that other than raptures, the 14-inch petroleum pipeline is experiencing massive corrosion in some sections, which has been causing partial blockages and weakening seams on the pipeline.

According to KPC, rehabilitation of the petroleum pipeline will involve repairing Line 1 so as to restore the reliability of the pipeline as well as ensure operational safety. The repairing process will be done in a careful manner to avoid any kind of disruptions in the current transportation of petroleum products from the Coastal region.

“The contractor shall plan his welding works to coincide with the availability of distillate product as per product schedule,” KPC said. The country is also joining Ethiopia, which plans to construct a new pipeline at the cost of US$ 1.4bn to connect Ethiopia-Djibouti. The pipeline construction has been given green light following the signing of an agreement between the two countries earlier this year.

The Kenyan Government however plans to build a new pipeline that will complement and eventually replace the existing one, and recently awarded the tender to Lebanon’s company Zakhem International.

Reported On 23 July 2015

US$ 350 million oil pipeline in Kenya from Mombasa to Nairobi.

Kenya Pipeline Company has a $ 350 million loan to invest in the construction of a new 450-kilometer oil pipeline in Kenya from Mombasa to Nairobi. The state-owned oil dispenser will move ahead to a 20-inch contemporary multi-product oil pipeline in Kenya to reinstate the more than 30-year-old – 14-inch pipeline currently in use.

For the duration of the signing of the loan with a group of six banks, KPC acting managing director Flora Okoth’s work is likely to be complete in eighteen months from the July 1 2014 contract signing date. Lebanese firm Zakhem International won the contract.
There are six local and international banks that do this. These are Citibank, Rand Merchant Bank (a division of FirstRand Bank Limited London Branch) Standard Chartered Bank, Commercial Bank of Africa, CFC Stanbic, and Co-operative Bank.

As Okoth speaks the contractor is on the ground procuring most of the items and requirements for the project. The requirement of completion is eighteen months however, an extra or less is being looked at in April 2016. The payment period of the loan is 10 years. KPC will fund 30 percent of the project plus is putting in $150 (Sh15.3 billion) in the Sh50.9 billion project.

Okoth also said that this will increase the product flow from the obtainable 730,000 liters to one million liters per hour. Once the lines are on, we will be taking off roughly four thousand trucks per day off the Mombasa-Nairobi route, One of the prime profitable bank financing ever entered into by a Kenyan parastatal with no government guarantee is, the loan.

Chairman John Ngum said “KPC can be seen like a proxy for the government. It has a profitable track record and a strong asset base,

Reported On 17 Nov 2017

Mombasa-Nairobi oil pipeline to be launched in December

The new Mombasa-Nairobi oil pipeline is due for commissioning before the end of December this year. This is according to the Energy Cabinet Secretary Charles Keter. The launch will come as a relief to road users as the pipeline will ease traffic along the Mombasa-Nairobi highway. It will also significantly improve supplies and stability in Nairobi, Kisumu, and their environs.

The new 20-inch 450-km oil pipeline from Mombasa to Nairobi is 97% complete. Mr. Keter further said that said the pipeline will ensure the country has a stable petroleum cover. He further said that the pipeline will serve the purpose of de-congesting traffic congestion along the Mombasa-Nairobi highway.

Clean energy

The CS also said plans to roll out low-cost liquid petroleum gas (LPG) were at a significant stage. Further, the plans target launch before Christmas.

According to him, the move will increase the penetration of alternative forms of energy. This is with reference to commonly used sources like charcoal and kerosene. The government is looking to phase out the latter in the long term due to the environmental impact.

Reported On 10 Sep 2022

Plans to build a new Mombasa-Nairobi pipeline underway

A new Mombasa-Nairobi pipeline is set to be constructed by Kenya Pipeline Company (KPC) for the transportation of petroleum products. This comes barely four years after the commissioning of the line that currently carries fuel between Mombasa and Nairobi.

The newly constructed Line 5 Mombasa-Nairobi pipeline went into operation in 2018. Although it can pump up to 1.8 million liters per hour, it currently pumps about a million liters per hour. After Line 5’s commissioning, KPC continued to use the old line in addition to the new one until last year.

It is said that the pipeline is currently under strain. Additional investments, like the construction of another line as well as increasing the capacity at its inland depots, are needed.

KPC calls for an increase in tariff oil marketing companies pay to use its pipelines and depots

In order to actualize its plans to construct the new Mombasa-Nairobi pipeline, KPC has called for an increase in the tariff oil marketing companies pay to utilize its pipelines and depots to transport and store petroleum products.

The company has reportedly did submit an application to the Energy and Petroleum Regulatory Authority (Epra). In regard to a 13% rise in its transport and storage tariff. As a result, it would bring it from the current Sh4.61 per cubic meter per kilometer to Sh5.22 over the 2022–23 financial year.

In the 2023–2024 financial year, the price will rise to Sh5.53 per cubic meter per kilometer. However, it will fall slightly to Sh5.50 in the following year. This is when the new Mombasa-Nairobi pipeline will have been, hopefully, complete. 

The application date of the tariff review 

KPC initially applied for a tariff review in January of this year. This is according to Elizabeth Akinyi, chief planning officer at KPC. Akinyi said that the application was amended in July to cater to the anticipated investments in the new Mombasa-Nairobi pipeline. In their initial tariff application, she explained that they had not factored in the capital for the improvement of the Mombasa-Nairobi line. 

The additional money from the higher tariff will potentially allow KPC to expand its storage capacity at its depots in the Western Kenya region. Due to storage constraints, Ms. Akinyi said that KPC’s depots in Eldoret and Kisumu have been experiencing operational challenges.