Vivo Energy Kenya Opens 14 million Litre Petrol Storage Tanks in Mombasa

Vivo Energy Kenya has today opened two fuels tanks at its Mombasa depot, with a total capacity of 14 million litres of petrol; equivalent to over five Olympic sized swimming pools, or enough to fill nearly a quarter of a million average sized car fuel tanks.

The opening of these tanks increases the company’s petrol storage to 22 million litres, and ensures a ready supply, needed as a result of significant retail business growth.  In the last two years Vivo Energy has increased the number of Shell service stations in Kenya by 31%, from 121 to 158.

Retail business growth has seen Vivo Energy return to Western Kenya, increase its footprint in the Mt Kenya region, and steadily spread to other counties.

The growing retail network has prompted the need to increase fuel storage so that the market can be served efficiently, and service stations kept ‘wet’ and operational. According to a report by analyst firm IHS, Kenya has experienced sustained economic growth, and overall oil product demand in the country is estimated to increase by 3.1% on average through 2020. The motor fuel demand is expected to rise by 31% in the period between 2014 and 2020, driven by an expanding vehicle fleet and improved road network.

Petrol consumption at Shell service stations has grown from an average of 11 million litres to an average of 20.8 million litres per month, an 87% growth since November 2012 when Vivo Energy Kenya was formed to distribute and market Shell branded fuels and lubricants. This increased petrol consumption has created the need for additional fuel storage, which is now in place.

Speaking during the commissioning of the new tanks Vivo Energy Kenya Managing Director, Mr Polycarp Igathe said: “Additional storage will enable Vivo Energy Kenya to support its rapidly growing retail business which has witnessed a 31% growth over the last two years.  It also increases flexibility to support inland markets like Uganda.” He added that the company will additionally save money on shipping demurrage costs as fewer fuel tanker discharges will be needed.

Present at the event, Mr Christian Chammas, Vivo Energy Group CEO, reaffirmed the company’s commitment to growing all its businesses in Africa:  “Not just here in Kenya, but across our network of 16 markets in Africa we are passionate about growing and improving our business.  We are investing around $300m over the next three years to build new service stations and refurbish existing ones so that our customers can receive high quality fuels and lubricants and experience the best convenience retail offer.  I am delighted to see this tank project successfully and safety completed.”

The construction of tank number two, with a capacity of five million litres of petrol, took 10 months and the conversion of tank 24, with a capacity of nine million litres of petrol, took three months. The company is also increasing its diesel capacity and tank construction is underway.