New cooking gas rules set to take effect

The Energy Regulatory Commission has submitted new cooking gas rules to the ministry of Energy after drawing them up with the Attorney-General’s office and other interested parties.

Energy minister, Kiraitu Murungi, is expected to sign the new regulations soon which, after publication in the Kenya Gazette, will seek to protect investors and consumers by imposing stringent penalties for malpractice.

The rules are expected to create order in the market. In the past players operated under the Petroleum Act due to lack of rules on cooking gas, leading to the illegal and unsafe filling of cylinders.

According to Intoil managing director Peter Njirwa, licensing is required to enhance adherence to safety regulations while also creating a level playing ground to protect investors and consumers.

“Marketing companies have to make a return on their investment while cooking gas consumers ought to get value for money to encourage use of LPG as an efficient source of energy,” he said.

To promote availability and use of cooking gas, from March this year the government made it mandatory for all cylinders (vessels) to be fitted with 20-millimetre standardised valves.

The new rules aim to create order in the supply chain ahead of the LPG Exchange Pool becoming operational as gas has to be sold in cylinders of three, six, and 13 kilogrammes.

According to PIEA’s acting general manager Wanjiku Manyara, the ERC will oversee adherence to the new regulations that are expected to sufficiently and effectively regulate the LPG market.

They govern the licensing of all importers, wholesalers, distributors and retailers.

Prosecution

“Retailers who contravene Kenya Standard 1938-4 of 2005 by storing LPG cylinders for retail inside buildings risk prosecution due to the danger posed to life and property in case of gas leaks causing fire,” she said.

Cylinders have to be stored outside buildings in properly ventilated racks in designated locations, and retailers, among others, are under obligation to Kenya Standard 1938-4 of 2005 relating to handling vessels not exceeding 15 kilogrammes.

The code stipulates how LPG cylinders should be handled, transported and used in a secure position. Vessels should not be dropped from lorry tail board, dragged, rolled or allowed to skid.

The codes developed by the Petroleum Technical Committees of the Kenya Bureau of Standards (Kebs) require a minimum distance between the cylinder storage area and the nearest building, church, road and public throughfare.

Committee chairman James Mwangi said codes related to storage and cylinder filling sites as well as bulk LPG transport by road have been developed by local professionals to enhance safety.

“Industry players ought to ensure drivers of trucks are trained by the School of Petroleum Studies (SPS) in defensive driving and product handling before being allowed to transport gas,” he said.

He said cylinder filling should be done in licensed premises way from residential areas, and plants manned by trained personnel must have fire-ighting equipment.

Safety

In November 2008 an explosion occurred at a plant next to a residential area and a hotel in Juja where 6kg cylinders were being filled without regard to environmental health and safety standards.

Unlicensed operators not only sell underweight gas cylinders but also compromise the safety of consumers when the vessels do not undergo routine maintenance checks.

People cannot also conduct the business of importation, storage, export, wholesale, transport, filling or retailing of LPG without an ERC licence.

Mr Wanjiku said oil companies marketing gas have signed a code of ethics for handling cylinders fitted with uniform valves and the LPG Exchange Pool will oversee operations of licensed gas refillers.

Prior to a firm’s joining the LPG Exchange Pool, it will be required to have trained workers, 5,000 cylinders, take a public liability of Sh50 million, execute a security bond of Sh5 million and fill vessels in a licensed plant.