Reported on February 2, 2015
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 the construction of a 450-kilometer pipeline to enable it to 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 spokesperson.
The construction, which also involves developing four storage tanks with a capacity of 133.52 million liters, 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 liters, comparable to 22 percent of current Kenya’s Pipeline total national capacity of 612.32 million liters.
“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 the 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 for the construction of the new pipeline, which will run 450 kilometers. 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 meters after the Kipevu oil storage facility which holds 326,333 cubic meters of petroleum products. Kipevu oil terminal expansion project in Mombasa has also been started.