Sh6bn oil pipeline to Western Kenya set to impact East and Central African countries

Workers put final touches on the Western Kenya Pipeline Extension Project before it is laid down at Cheplaskei in Eldoret Town on September 15, 2010. PHOTO | JARED NYATAYA | NATION MEDIA GROUP

What you need to know:

  • The project will bring in an additional 360 thousand litres of oil per hour to the region whose energy demands have been on the rise.

  • Increased capacity to impact business in neighbouring countries including, Burundi, DR Congo, Northern Tanzania, Uganda and Rwanda.

  • Annual petroleum product demand for Western Kenya region is 1.2bn litre while the total demand including the export market is 2.3bn litres.

Kenya Pipeline Company will complete its oil supply project to Western Kenya in April.

The Sh6 billion project awarded to China Petroleum Pipeline Bureau in November 2014 involves a 10-inch pipeline from Sinendet in Nakuru County to Kisumu.

The new Line6 will be an addition to the existing six-inch Sinendet-Kisumu pipeline (Line3).

The project will bring in an additional 360 thousand litres of oil per hour to the region whose energy demands have been on the rise.

The current Line3 constructed 25 years ago has been supplying 800 million litres annually to the region whose demand has hit 2.3 billion litres, including supplies across the border.

KPC’s acting Managing Director Joe Sang said increased in oil supply to the region will benefit both the locals and the neighbouring countries. 

RIPPLE EFFECTS

“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.

The project’s manager Mr Gabriel Kiama said the state corporation is carrying out the project “with full utilisation of its local capacity”.

“One important aspect about the project is its implementation. For the first time, there is no consultant in the project. KPC through years of experience has fully taken up the role of the consultant, thanks to our experienced and well-trained staff,’’ Mr Kiama  said.

The modernised pipeline infrastructure will also include several tie in facilities like right of ways, electrical instrumentation and communication work stations as well as fibre optics.

It  will also create crucial short distance access networks in areas where the line passes.

HIGH DEMAND

According to a study by Chinese consulting firm, Sinopec Petroleum Engineering Corporation, petroleum product demand for Western Kenya region is approximately 1.2 billion litres while the total demand including the export market is approximately 2.3 billion litres annually.

The new line is expected to open up development of other projects such as the Kisumu Oil Jetty (KOJ) which has been put in abeyance mainly due to product shortages at the depot.

KPC is also undertaking construction of a new 20-inch pipeline to replace the aging 14-inch Mombasa-Nairobi pipeline.

The Sh50 billion project set to be complete by August will see over 4,000 fuel transporting trucks off the roads yearly as more fuel is set to reach the capital via the underground.

According to the Petroleum Institute of East Africa (PIEA), Kenya’s national demand for petroleum products in 2010 was 3.4 billion litres but in 2014, it stood at 4.4 billion litres.

PHENOMENONAL GROWTH

Regionally, the combined demand for Rwanda, Uganda, Burundi, Eastern DRC, South Sudan and northern Tanzania in 2010 stood at 2.4 billion litres but in 2014, it was 2.8 billion litres. 

The company has also embarked on a new phase of upgrading loading and storage facilities to meet new demand.

The construction of a modern bottom truck-loading facility is currently underway in Eldoret to be completed later this year.

Since the inception of KPC in 1978, volumes of oil moved through pipeline has been increasing over the years rising from 800 million litres per year to over 5.6 billion litres in 2013/14.

This year, the company targets to move about 5.9 billion litres.  And with a bigger pipeline coming up, KPC is putting up additional storage tanks in the Nairobi terminal to increase  by more than half the storage capacity of diesel and super petrol from the current 100 million litres to 233 million litres.

“Economic growth goes hand in hand with the demand for petroleum products and with this initiative, KPC will strategically position itself as a key driver for the local and regional economy through adequate supply of the crucial commodity,” Mr Sang said.