Kenyan petroleum firm in new investments

Kenyan petroleum firm in new investments

The state-owned Kenya Pipeline Company (KPC), has laid out plans for a Liquid Petroleum Gas(LPG) plant in the country`s coastal city of Mombasa at a cost of US$50 million, authorities announced here Monday.

A similar plant would soon be constructed in Nairobi, after an Indian firm, BARAT Ltd, was awarded the tender at a cost of US$30 million for being the lowest bidder.

KPC chief executive, George Okungu, said a company which has won the tender for the Mombasa project will be announced in two weeks` time.

According to Okungu, KPC had already released some US$10.2 million towards the project while the government will top up the balance through the Kenya Power and Lighting Company (KPLC).

He said the investments were part of the government`s strategic plan to assist in improving service delivery and rolling out new projects to enhance the distribution of oil both locally and regionally.

“The projects are part of the corporation`s reforms in improving and offering quality services to enable it meet both regional and international marketing standards,” Okungu said at a luncheon organized for its corporate customers here Monday.

He said KPC was also undertaking other new projects including the increasing of flow rates in the oil pipeline between Nairobi, Eldoret, Malaba and Rwanda and other parts of the east African region.

KPC, he added, would also expand the Mombasa pumping station to cater for the increased demand of petrol and petroleum products in the eastern and central African region.

The KPC was also overseeing the reconstruction of the Nairobi-Eldoret and Uganda supply line by a Libyan firm, Turmoil Company.


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