KPC on the spot over Sh400m bill to decommission hazardous oil pipeline

Kenya Pipeline Company is in the spotlight after it emerged that Sh400 million was spent to decommission an old oil pipeline and use it to supply water to Mombasa despite the plan being flagged as a potential health hazard.

The Parliamentary Investment Committee on Commercial Affairs and Energy raised questions over the move, yet the National Environment Management Authority (Nema) did not clear the project.

The pipeline could pose a health threat to the intended water consumers, Nema said.

Apart from Nema, a company contracted to carry out an Environmental Impact Assessment on the project had also raised concerns about potential health risks.

The 14-inch oil pipeline, which runs 276 kilometres, was to be repurposed to convey water from the Mzima Spring Water intake point in Taita Taveta County to Mombasa in partnership with the Coast Water Works Development Agency.

The Auditor-General, Nancy Gathungu, raised concern over the payment, which was part of a Sh750 million budget to flush out petroleum products in Kenya's oldest pipeline.

The committee, chaired by Pokot South Member of Parliament David Pkosing, sitting in Mombasa, asked KPC managing director Joe Sang to explain the procedure used to disburse the funds, yet the project had several queries.

Kaloleni MP Paul Katana said health experts had also questioned how a pipeline ferrying fuel could convey water.

Cost-effective means

“KPC should stick to its mandate to provide efficient, reliable, safe and cost-effective means of transporting petroleum products from Mombasa to the hinterland. How they started to engage in water supply raises questions,” said Katana.

In 2022, KPC stopped the usage of Line 1, which used to transport gasoline, kerosene, Jet A-1, and diesel from Mombasa to the hinterland due to the increased frequency of pipeline leaks and hydrocarbon releases, which endangered safety and adverse environmental aspects, coupled with the escalating cost of maintenance.

The pipeline had a design shelf life of 25 years but remained in service for 42 years, leading to several operational challenges, including frequent leakages.

In the decommissioning report, KPC considered several decommissioning options, including removing the entire line and disposing of the pipes as scrap metal before restoring the right of way.

The second option was to abandon the pipe underground, while the third was to re-use the whole pipeline or some sections to supply water. 

Intended to repurpose

KPC had intended to repurpose part of an old pipeline, which ceased operations to supply water from Mzima Spring to Mombasa, which is water-starved, but environment and health experts questioned its repercussions.

A company commissioned by KPC to conduct an environmental impact assessment on the project concluded that there is a high probability of water contamination by petroleum residue, with or without mitigation measures by the implementing agencies.

“Reusing a petroleum pipeline to supply water is not common practice in the world. The impacts could be more significant than the benefits and will require strict implementation of the proposed mitigation measures.

“Additionally, this study lacks sufficient project details like feasibility studies and engineering design to support this option,” a section of the assessment report seen by Nation.Africa states.

During public participation meetings held by the pipeline company, inquiries about water safety were among the major concerns raised.

At the meetings, KPC assured the public that the entire pipeline from Mombasa to Nairobi was cleaned.

It added that the procedure was repeated up to 10 times, and the inline water was then tested for petroleum compounds until the water met the regulatory requirement for drinking water.

However, researchers said no evidence was produced to ascertain that the pipeline was clean.

“The information in this report regarding inline water is as reported during consultation with KPC at Voi,” it says.

Reusing the pipeline

The company had defended its move to use the pipeline to supply water to Mombasa, which is facing water shortage issues, stating that reusing the pipeline was the most financially viable option.

The current water demand in the Coast region is approximately 329,306 cubic metres per day against production of 180,000 cubic metres daily.

The Coast region mostly depends on bulk water supply system schemes presently comprising Mzima Pipeline, Marere Pipeline, Tiwi Boreholes, and Sabaki-Mombasa Pipeline, supplying Mombasa and 13 townships in Kwale, Kilifi, and Taita Taveta counties.

The remaining six townships get supplies from local sources.

KPC, in its Environmental Impact Assessment Study Report by Kurrent Technologies Ltd, a Nema-registered firm of experts, said abandoning the pipe along the right of the way would have required minimum cost to monitor potential pollution and minimal environmental disturbances since there would be no site construction or demolition activities leading to insignificant environmental impacts.

On the other hand, the company said abandoning the pipeline would have challenges as scrap dealers would have had a field day, leading to insecurity, environmental, and safety issues because there is an active oil pipeline nearby.

For KPC, however, the directive issued by then President Uhuru Kenyatta continues to haunt the state agency after it spent Sh400 million that is now being questioned by the Auditor-General.

In a letter dated March 25, 2022, from the then Head of Public Service Joseph Kinyua, KPC was directed to repurpose the old pipeline to take water from Mzima spring to Mombasa.

"To help alleviate the water supply shortage within Mombasa County, and in recognition that the Mombasa-Nairobi Oil pipeline (Line 1) is the process of being decommissioned from transporting refined products. It is notified that His Excellency the President has directed that Ministry of Petroleum facilitates the utilisation of pipeline for supply of water from Mzima Springs to Mombasa City and its environs," read the directive by Mr Kinyua.

The letter was addressed to the then Principal Secretary for Petroleum, Andrew Ng'ang'a, who forwarded the directive to the then KPC boss, Dr Macharia Irungu. 

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