Geza Ulole
JF-Expert Member
- Oct 31, 2009
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Do u know the crude storage farm and jetty EACOP is building at Tanga port's Mwambani? Bigger than anything in oil and gas activities in the EA region!From time to time, we always get news like these but eventually they fade away cause it was just click bait...
Tanzania needs to really invest in fuel supply infrastructure to permanently wrestle Kenya out of controlling the fuel supply business in Uganda....
I'll put things into perspective... While you now have the capability to transport 500,000 liters via rail to Mwanza in 24hrs, Kenya Pipeline has the capability of transporting 1 million litters per hour from Nairobi to Mombasa and 500,000 liters per hour from Nairobi to Eldoret oils depot for onward trucking And 300,000 liters per hour from Eldoret to Kisumu oil depot....
Plus, Kenya has already built an oil jetty in Kisumu as we await Uganda to finish hers and they are also about to finish the construction of an oil tanker... Once this is done, The oil transport process from Mombasa to Kisumu port oil jetty will be exclusively through pipeline .... Then the oil tanker will take over up to port bell and will offload the oil through another jetty straight to storage tanks in Uganda.
Simply put, You won't be able to compete with this kind of efficiency , Not unless you decide to build a new pipeline yourself... And if you propose to build a pipeline straight to Mwanza, Kenya will not sit down and watch you take that business from her... The next logical step for Kenya is to propose a joint project with Uganda to connect the Eldoret oil storage depot with a 500,000 liters per hour petroleum product pipeline straight to Kampala! Hapo itakua si game ya mashindano tena, itakua tumepasua mpira, tukalima uwanja na majembe, referee tukamvua nguo, na kikombe tukakiiba... Yani hakuna game tena forever!
Actually when I think about it, a 500,000 liters per hour pipeline can do 12 million litters in 24hours! Uganda only consumes less than 4 million litters per day so we could even build a smaller 200,000 liters per hour pipeline and it would be more than sufficient
From time to time, we always get news like these but eventually they fade away cause it was just click bait...
Tanzania needs to really invest in fuel supply infrastructure to permanently wrestle Kenya out of controlling the fuel supply business in Uganda....
I'll put things into perspective... While you now have the capability to transport 500,000 liters via rail to Mwanza in 24hrs, Kenya Pipeline has the capability of transporting 1 million litters per hour from Nairobi to Mombasa and 500,000 liters per hour from Nairobi to Eldoret oils depot for onward trucking And 300,000 liters per hour from Eldoret to Kisumu oil depot....
Plus, Kenya has already built an oil jetty in Kisumu as we await Uganda to finish hers and they are also about to finish the construction of an oil tanker... Once this is done, The oil transport process from Mombasa to Kisumu port oil jetty will be exclusively through pipeline .... Then the oil tanker will take over up to port bell and will offload the oil through another jetty straight to storage tanks in Uganda.
Simply put, You won't be able to compete with this kind of efficiency , Not unless you decide to build a new pipeline yourself... And if you propose to build a pipeline straight to Mwanza, Kenya will not sit down and watch you take that business from her... The next logical step for Kenya is to propose a joint project with Uganda to connect the Eldoret oil storage depot with a 500,000 liters per hour petroleum product pipeline straight to Kampala! Hapo itakua si game ya mashindano tena, itakua tumepasua mpira, tukalima uwanja na majembe, referee tukamvua nguo, na kikombe tukakiiba... Yani hakuna game tena forever!
Actually when I think about it, a 500,000 liters per hour pipeline can do 12 million litters in 24hours! Uganda only consumes less than 4 million litters per day so we could even build a smaller 200,000 liters per hour pipeline and it would be more than sufficient
Our domestic consumption of LPG is higher than yours so how can an LPG storage tank be a white elephant... Sometimes fikiria BanaKenya’s plan to seize LPG logistics business from Tanzania
THURSDAY JUNE 02 2022
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A truck ferrying liquid petroleum gas. There has been a snarl-up of trucks at the Kenya-Tanzania border town of Namanga following an impasse on clearing trucks. PHOTO | FILE | NMG
Summary
- The LPG cost in Mombasa is much higher than in Dar es Salaam LPG because the offloading and storage infrastructure at Dar es Salaam or Tanga ports is more efficient.
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By The East African
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Kenya seeks to dominate in the supply of liquefied petroleum gas (LPG) by constructing the biggest import and storage gas facility in Mombasa and licensing more private companies to compete with Tanzania which has dominated the business for years in the region.
The announcement to construct a 25,000 tonnes storage facility by the Kenya Pipeline Company (KPC) which will connect to the Ksh42 billion new Kipevu Oil Terminal 2 (KOT) at the port of Mombasa comes few days after Kenya banned imports of gas from Tanzania through the Namanga border.
KPC has contracted a giant Pakistani firm; Petrochem Engineering Services to design LPG import and storage facility in Changamwe, Mombasa as five private companies apply to tap into the new Kipevu Oil Terminal 2.
The facility in Mombasa once completed will quicken the loading of cooking gas for distribution by trucks which will help to cut demurrage costs.
KPC says faster loading is expected to translate to lower prices for LPG by 30 percent once operational as oil marketing companies pass the benefits of reduced demurrage costs to consumers.
“LPG storage capacity in Mombasa is limited and huge demurrage is incurred by LPG ships thus affecting the final consumer price of bottled gas,” read part of KPC in tender documents.
“KPC proposes to install, commission and operate a 500 tonnes per day LPG truck loading facility which will enhance product evacuation and as such ease ullage constraints and subsequently reduce demurrage costs.”
Limited LPG storage capacity in Mombasa has meant that ships stay longer at the port, leading to higher demurrage costs which are then transferred to consumers thus paying high prices of bottled gas.
KPC currently receives imported LPG from ships berthed at the Shimanzi Oil Terminal and puts it into its tanks - T610 and T611 located within its Changamwe facility the product is then evacuated to local terminals through inter-connecting pipelines for truck loading and bottling respectively.
The lack of loading gantries for truck loading has been a challenge to gas companies and the facility once complete will allow companies to ferry gas in trucks which has proved to be economically viable.
With the completion of KOT2 with a capacity to connect different gas suppliers, the business which has been controlled by a few companies will end the monopoly as already five companies have applied to connect to the terminal at the port of Mombasa.
According to National Environment Management Authority (Nema) and Energy Regulatory Authority (ERC), more than five companies have applied to get license from to construct gas facilities.
Some of the companies which have applied for the license to tap in the submerged gas pipeline from KOT2 include Aevitas Investment, Mombasa Gas Terminal Limited (MGT), Lions Gate limited, Focus Container Freight Station and Mansa East Africa Limited.
Once licensed, they will cater for the untapped LPG market with the increasing population and demand in the country and in the East African region.
Kenya imports about 40 percent of gas annually from Tanzanian liquefied petroleum gas (LPG) firms via the Namanga and Holili border posts and the remainder is imported through the Port of Mombasa.
The LPG cost in Mombasa is much higher than in Dar es Salaam LPG because the offloading and storage infrastructure at Dar es Salaam or Tanga ports is more efficient.
Early this month, Kenya started crackdown on gas importers from Tanzania as the country’s revenue authority Deputy Commissioner for Revenue and Regional Coordination Joseph Kaguru disclosed that the traders have been paying Value Added Tax (VAT) of eight percent instead of 16 percent.
Mr Kaguru added that the traders are shipping in the commodity from the Middle East and using the Namanga border point to pay lower taxes under the pretext they are sourcing it from Tanzania.
With the ongoing crackdown, Kenya is now is heavily relying on the new KOT 2 jetty project owned by Kenya Ports Authority (KPA) to open up the market, promote competition and to increase LPG consumption and reduce prices to citizens.
The new KOT2 project includes a dedicated berth and pipeline for LPG, which will now allow for larger vessels to call at the port of Mombasa promoting economies of scale and reducing handling costs drastically.
akitimo@ke.nationmedia.com
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Kenya’s plan to seize LPG logistics business from Tanzania
Kenya seeks to compete with Tanzania which has dominated the LPG business for years in the region.www.thecitizen.co.tz
MY TAKE
Another white elephant infrastructure at Mombasa port manifests itself! Ati Kipevu oil jetty 02!? Kipevu oil jetty my foot, make it KOJ 100..!!
CC: Tony254
Do u know the crude storage farm and jetty EACOP is building at Tanga port's Mwambani? Bigger than anything in oil and gas activities in the EA region!
Sasa kelele zote za upanuzi ni haka kanusu mkeka? Hiyo Africities conference imeendaje where r the 6 African presidents?Kisumu port
View attachment 2249967
New wing was added recently
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Africities summit iliendaje? Kuna Rais alikanyaga Kisumu kati ya sita waliotarajiwa?Kisumu port
View attachment 2249967
New wing was added recently
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