Government Plans to Set Up Bulk LPG Facilities In Mombasa

The Government is working towards setting up bulk LPG import handling and storage facilities at the Kenya Petroleum Refineries Limited (KPRL) facility in Mombasa County, soon after Kenya Pipeline Company (KPC) fully takes over KPRL.

The Energy & Petroleum Cabinet Secretary Mr. Davis Chirchir stated that the acquisition process is on the verge of completion, following robust consultative engagements between the Ministry, KPC, KPRL, and the County Government of Mombasa in the last few weeks.

CS Davis Chirchir was speaking at a press conference held today at the Mombasa Governor’s office.

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“I am pleased to inform you that the acquisition of KPRL by KPC will be finalized in the next few weeks. The Cabinet-approved acquisition will see KPC acquire KPRL by way of transfer of shares without any monetary compensation. The acquisition is envisaged to facilitate KPC to expedite pipeline operations and enhance storage capacity for petroleum and petroleum products thereby fostering synergy in the petroleum value chain. This will stabilize the supply of petroleum products in the country and ensure cost-efficiency through reduced demurrage costs” said CS Chirchir.

“The acquisition will also ensure optimal utilization of the 370 acres beachfront KPRL facility thereby enabling the Government to put up bulk LPG import handling and storage facilities to increase Kenya’s LPG consumption from 7 kg per capita to 10kgs in the next 3 to 5 years” he added.

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The merger of the two government institutions is further expected to increase storage capacity for the country, enable execution of the planned capacity enhancement of the pipeline system, manage petroleum and petroleum products price hikes, and position Mombasa as the dominant trading hub in East Africa.

CS Chirchir further indicated that KPRL and KPC entered a Lease Arrangement in March 2017 where KPC has been managing and operating KPRL facilities. In this regard, the two institutions have a working relationship. KPRL staff will not lose their jobs after the takeover, they will be absorbed by KPC.

The Ministry of Energy and KPC today held a consultative meeting with Mombasa political leaders to optimize the utilization of KPRL by identifying areas of collaboration between the National Government and County Government.

Operationalization of the KPRL facility is expected to elevate Mombasa’s status as a key business hub in the region, boost the County’s economic activities, and empower surrounding communities, particularly those residing in Changamwe constituency.

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