Kenya Pipeline to construct gas import terminal at KPRL
The Kenya Pipeline Company (KPC) has announced plans to part of the land at the Kenya Petroleum Refineries Limited (KPRL) to construct a liquefied petroleum gas (LPG) storage terminal.
The move is expected to lower the cost of gas given the fact the country lacks an independent import terminal that has seen prices remain high.
KPC Managing Director Joe Sang said consumption of cooking gas has been on the rise signifying the need to improve handling.
“Currently, the country lacks a common user import terminal under the control of government for cooking gas since there are no government controlled storage facilities for LPG. With KPC’s acquisition of Kenya Petroleum Refineries Limited facility in Mombasa to boost the country’s fuel storage potential, there is also adequate land to put up an LPG bottling and storage plant,” Mr Sang said.
Data from the Kenya National Bureau of Statistics indicates that gas consumption rose by 233 percent between January and May this year, to 76,800 tons.
Mr Sang said the state agency will also construct additional storage facilities in Nairobi, Nakuru, Eldoret, Kisumu and Sagana to ensure ample supply and deepen penetration.
“This will significantly drive down the cost of cooking. As one of the key vision 2030 flagship projects, the initiative will also stem cowboy suppliers who are currently putting thousands of Kenyan lives at risk by selling substandard cylinders,” he said.
The country has over the years seen the rise in cases of illegal gas refilling owing to the lack of storage facilities.
Oil marketing companies have been pushing for strict enforcement of gas refilling with unlicensed gas operators accused of undercutting the market.
The cartel has over the years been hijacking gas cylinders on transit, taking them to illegal dens and them reselling to inspecting customers.
In June the government scrapped the 16 percent value added tax on cooking gas as part of efforts to deepen uptake of gas.
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