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The Kenya Pipeline Company (KPC) will commence the construction of Kisumu oil jetty in March this year to facilitate safe transportation of petroleum product through Lake Victoria to the neighbouring countries.
The construction of the jetty is expected to take 6 months and will increase KPC’s competitive edge in the region as the leading oil transporter.
The Jetty is expected to boost the firm’s production in Kisumu by 1 million litres a year in phase 1 and up to 3 million litres annually by 2028.
KPC’s Managing Director, Joe Sang said the Sinendet-Kisumu Pipeline (Line 6) operationalized in April 2016 now ensures ample petroleum product volumes is available in the Western Kenya region and the export market of Uganda, Eastern DRC, Rwanda, Burundi, and Northern Tanzania.
“Construction of the Jetty is now commercially feasible following completion of Line 6 which has increased product flow to Kisumu depot by 350,000 litres per hour from the previous 110,000 litres per hour,” said Sang.
“The Target market is around the lake and expanding the export market into Uganda and mines in northern Tanzania. The jetty will also create integrated marine fuel transportation in the region making it more efficient and commercially viable and reduce transportation costs for the oil marketing companies,” said Sang.
The additional petroleum product will also enhance optimization of tank utilization in Kisumu, which previously stood at 30 percent. The full tank capacity for the port town is 39 million litres. The annual demand for petroleum products in western Kenya is 1.1 billion litres whereas the regional demand stands at 3.3 billion litres.
Line 6 is a Kshs 5.7 billion 122km 10-inch diameter pipeline parallel to an existing 6-inch diameter pipeline from Sinendet to Kisumu (Line 3) expected to enhance petroleum product availability in the Western Kenya and the export market (Uganda, Eastern DRC, Rwanda, Burundi, Northern Tanzania).
KPC is currently undertaking a number of large scale energy infrastructure projects aimed at tapping growth opportunities in the regional oil & gas sector.
The company is currently constructing the Mombasa-Nairobi Pipeline replacement Project (Line 5) which is scheduled to be completed this year.
The firm is also establishing a new state of the art loading facilities in Eldoret and new tanks in Nairobi Terminal which will ensure provision of sufficient capacity for receipt of higher volumes of products expected once the Mombasa – Nairobi pipeline is replaced.