Kenya has announced completion of transaction that places state-owned Kenya Petroleum Refineries Ltd (KPRL) it under the management of Kenya Pipeline Company (KPC). This paves way for a gas pipeline from Dar es Salaam to Mombasa.
Cabinet Secretary for Energy and Petroleum, Davis Chirchir, made the announcement and said the restructuring aims to utilize the facility effectively and ensure its maximum use. The Mombasa-Dar es Salaam Gas Pipeline is set to serve means to transport natural gas for various purposes, including power generation, cooking, and heating.
Gas importation
“We hope once the 30,000 metric-tonne gas facility which is under construction in Changamwe is complete, the project will move to the next stage,” said CS Davis Chirchir.
A feasibility study was conducted by a consultant (K&M Advisors, a US firm) to assess the viability of gas power generation in Mombasa County using liquefied natural gas (LNG) from Tanzania. This study likely evaluated technical, economic, financial, environmental, and social aspects of the project.
The agreement between Kenya and Tanzania for gas importation would depend on the findings of the feasibility study. If the study determined that importing natural gas from Tanzania was more cost-effective than relying on local sources, the agreement would proceed.
Tanzania’s Tanga gas plant already supplied a significant portion of the Kenyan market. However, this gas was transported via truck through border posts, and the pipeline project aims to enhance the efficiency and capacity of this supply.
KPRL’s storage tanks in Mombasa are being repaired and will be used for storing various petroleum products. Kenya Pipeline Company (KPC) will also use these tanks to store imported fuel for distribution in the region.
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