Vivo Energy which is a downstream petroleum company based in Africa recently commissioned a 23 million litre diesel storage tank in Shimanzi, Mombasa County as it looks forward to boosting its supply in the region.
Speaking during the commissioning Vivo Energy Managing Director, Mr. Polycarp Igathe confirmed the news and said that the investment will allow the marketer to grow, expand and upgrade its retail network.
“Additional storage will enable Vivo Energy Kenya to support its rapidly growing retail business which has witnessed a 54 percent growth over the last three years,” Mr. Igathe said.
This initiative barely comes after oil marketers fight to find sufficient storage facilities for petroleum products which have resulted to thin profit margins, however the investment will serve as a major avenue for supplementing the current ullage received from the pipeline and also enable Vivo to support inland and its Ugandan subsidiary.
Apart from commissioning this storage tank, Vivo has in the recent past also opened a five million litre petrol tank pushing up its total storage capacity to 82 million litres for both products. The mega company has grown its service outlets over the last 12 months to 172 stations under the Shell brand.
Vivo Energy has also gone a mile further and partnered with Rift Valley Railways (RVR) to transport petroleum products via rail instead of transportation via the road and the pipeline.
The project pushed Kenya Pipeline Company (KPC) to lease out oil storage facilities since last year from public to private investors in Nairobi and Mombasa so as to improve product supply and distribution. Petroleum Principal Sectary, Mr. Andrew Kamau then challenged other oil marketers to invest in storage facility which will help offsetting challenges faced by KPC. Vivo Energy is the Shell licensee in 16 countries in Africa.