Kenya dreams to recapture region's fuel market

Kenya’s plan to recapture region’s fuel market

TUESDAY DECEMBER 5 2017


Oil tankers delivering fuel to Uganda queue at Busia Kenya border. Kenya has embarked on a charm offensive to recapture lost market share after Rwanda, Burundi and DRC in 2016 opted to import fuel through the Central Corridor from the Dar es Salaam port. PHOTO FILE | NATION

In Summary

Kenya has embarked on a charm offensive to recapture lost market share after Rwanda, Burundi and DRC in 2016 opted to import fuel through the Central Corridor from the Dar es Salaam port, citing long tanker queues at the depot and adulteration of products.

By KENNEDY SENELWA


Kenya has moved to recapture the Great Lakes Region’s fuel market after losing a share of it to Tanzania due to allegations of adulteration and long queues at the Eldoret depot.

The Kenya Pipeline Company has finished installing new loading facilities in the Eldoret fuel depot, which has cut the loading time by and effectively raised the amount of fuel transported to the Great Lakes Region from 4 million litres to 6.5 million litres daily.

The depot serves fuel exporters to Uganda, Rwanda, Burundi and eastern Democratic Republic of Congo.

Long queues

Kenya has embarked on a charm offensive to recapture lost market share after Rwanda, Burundi and DRC in 2016 opted to import fuel through the Central Corridor from the Dar es Salaam port, citing long tanker queues at the depot and adulteration of products.

Transit products are not subjected to upfront taxes in Kenya and Tanzania and there have been reports of diversion of export fuel into the local market. The two countries have stepped up efforts to curb adulteration of petrol and diesel.

The $3.3 million upgrade of the Eldoret depot with bottom truck loading facilities is expected to improve safety and efficiency in loading of trucks. Bottom loading, as opposed to top loading, is the globally accepted practice.

Joe Sang, KPC managing director, said evacuation of export petroleum products in Eldoret has increased by 2.5 million litres per day.

The shorter loading time is expected to maximise utilisation of the two parallel pipelines from Nairobi to Eldoret.
“Because of this efficiency, there will be no need for trucks to drive all the way to Nairobi,” said Mr Sang.

Kenya’s plan to recapture region’s fuel market

MY TAKE
BTW who owns Primefuels business?

ok nc try

Hii kampuni ya Prime Fuels hata hapa bongo ipo tena ni kampuni kubwa sana

Nadhani battle ground ipo kwenye mafuta ya DRC, Rwanda na Burundi ni rahisi kwao kutumia central corridor na Uganda Northern corridor

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joto la jiwe said:

Nadhani battle ground ipo kwenye mafuta ya DRC, Rwanda na Burundi ni rahisi kwao kutumia central corridor na Uganda Northern corridor

Click to expand...

Kumbe unalijua hilo😀

3rd man said:

Kumbe unalijua hilo😀

Click to expand...

Ninyi ndiyo mnaokataa ukweli, mnasisitiza reli yenu kufika Rwanda na Burundi, wakati mkijua nchi hizo ni sehemu ya central corridor.
Northern corridor soko lake ni Uganda na South Sudan pekee, Uganda tunajaribu kupunguza market share ya Northern corridor, tumefanikiwa kulichukua bomba la mafuta la Uganda, na sasa hivi tuna 20% share ya bidhaa za Uganda, battle continues

Workers put final touches on the Western Kenya Pipeline Extension Project before it is laid down at Cheplaskei in Eldoret Town

“It (new pipeline) is good news for our customers in Western Kenya, Uganda, Northern Tanzania and The Great Lakes Region. The days of long wait for the product (fuel) at the Kisumu deport and the road trips to Nakuru depot shall be history once the new Line6 becomes operational because we will finally be able to meet the 2.3 billion litres per year demand,” Mr Sang said.

KPC hopes to boost its revenues and fuel economic expansion in the lake region and western Kenya with its increased capacity set to impact the three neighbouring countries of DRC, Burundi and Rwanda as well.

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The annual demand for petroleum products in western Kenya is 1.1 billion litres whereas the regional demand stands at 3.3 billion litres.

Mr Sang said the new line will turn Kisumu into a focal point of oil and gas commerce in the region through safe transportation of fuel across the lake.

“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,” he said.

Kenya Pipeline is currently undertaking a number of large scale energy infrastructure projects aimed at tapping growth opportunities in the regional oil and gas sector.
The annual demand for petroleum products in western Kenya is 1.1 billion litres whereas the regional demand stands at 3.3 billion litres.

Mr Sang said the new line will turn Kisumu into a focal point of oil and gas commerce in the region through safe transportation of fuel across the lake.

“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,” he said.

Kenya Pipeline is currently undertaking a number of large scale energy infrastructure projects aimed at tapping growth opportunities in the regional oil and gas sector.
The annual demand for petroleum products in western Kenya is 1.1 billion litres whereas the regional demand stands at 3.3 billion litres.

Mr Sang said the new line will turn Kisumu into a focal point of oil and gas commerce in the region through safe transportation of fuel across the lake.

“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,” he said.

Kenya Pipeline is currently undertaking a number of large scale energy infrastructure projects aimed at tapping growth opportunities in the regional oil and gas sector.



Kisumu Oil jety under construction by SECO