Kenya to sped 120 mln USD to relocate oil terminal to cut fuel costs
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- Category: Oil & Gas
- Published on Friday, 11 April 2014 05:03
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Kenya's government said Saturday it has begun the process of relocating Mombasa-based Kipevu oil terminal to create additional capacity at a cost of $120 million.
Kenya Ports Authority chairman Danson Mungatana said the new terminal, expected to be completed in 2018 and will reduce fuel pump prices in the East African nation.
"Preliminary design of the new facility has been undertaken and the relocation agreed upon by all stakeholders. The detailed design will cost 1.7 million dollars while construction of the facility will cost about 120 million dollars," said Mungatana.
The KPA chairman who was speaking during the official launch of the Kenya Oil and Gas Association in Nairobi said the new terminal will have capacity for two large vessels each carrying 100,000 tons of crude oil.
Kenyan oil firms have previously cited the high cost of refined petroleum products to losses incurred as a result of refining at the Kenya Petroleum Refineries Limited (KPRL) facility in Kipevu.
Read more: Kenya to sped 120 mln USD to relocate oil terminal to cut fuel costs
Kenya Refineries petitions MPs over proposed $1.2bn upgrade
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- Published on Friday, 11 April 2014 04:55
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Kenya’s troubled oil refinery has petitioned parliament to sanction the upgrade of the facility ahead of the proposed exit of Indian conglomerate Essar from the Mombasa-based plant.
The Kenya Petroleum Refineries Ltd (KPRL) said an upgrade of the refinery — estimated to cost at least $1.2 billion — was more feasible than the planned building of a new refinery at Lamu.
In a proposal to the Public Investment Committee (PIC), KPRL said oil discovered in northwestern Kenya, expected to be produced in the next three to four years, can be processed with comparative low investment if upgrading is done.
The politics around the upgrade or closure of the refinery as well as the exit of Essar have set East Africa talking, with the region desperate to have a strategic refinery following oil finds in Kenya and Uganda.
Read more: Kenya Refineries petitions MPs over proposed $1.2bn upgrade
Kenya Will Create Sovereign Wealth Fund Before Crude Output
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- Published on Friday, 11 April 2014 04:46
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Kenya plans to set up a sovereign wealth fund to invest revenue from future output of oil that Tullow Oil Plc (TLW) and Africa Oil Corp. (AOI) expect to start pumping as soon as 2016, central bank Chairman Mbui Wagacha said.
The country’s attorney general is “fine-tuning” a draft framework for the fund, which will shield the economy from cyclical changes in commodity prices, build savings for future generations and be used to invest in infrastructure, he said.
“We are unique in Kenya in that we are setting up our sovereign wealth fund prior to the phase of exploitation of natural resources,” Wagacha told reporters today in the capital, Nairobi, according to a live television broadcast. “The resources that we own today also belong to our future generations.”
Read more: Kenya Will Create Sovereign Wealth Fund Before Crude Output
Kenya to use Kshs. 10.3 billion to relocate Kipevu Oil terminal
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- Published on Friday, 11 April 2014 04:41
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Kenya government has began relocating Kipevu Oil terminal as it tries to increase capacity and reduce the frequent oil shortages.
According to the Kenya Ports Authority chairman Danson Mungatana the $120 million facility will take five years to be completed and will serve to reduce fuel prices as the country will be able to export huge amounts of fuel.
Formerly importers have heard to pay huge costs in demurrage costs resulting from ships stranded in the high seas as the Kipevu terminal has limited capacity.
Above the construction cost the project will also cost another $1.7 million to come up with a detailed design.
“Preliminary design of the new facility has been undertaken and the relocation agreed upon by all stakeholders. The detailed design will cost 1.7 million dollars while construction of the facility will cost about 120 million dollars,” said Mungatana.
Read more: Kenya to use Kshs. 10.3 billion to relocate Kipevu Oil terminal