Nairobi — The Kenya Pipeline Company is set to build a Sh17.7 billion liquefied petroleum gas (LPG) storage and handling facility at Changamwe in Mombasa County.
Through this, KPC will install a 30,000-metric tonnes facility that will get LPG from the Kipevu Oil Terminal Jetty.
R&E Modern Technologies as well as Petrochem Engineering Services from Pakistan will serve as consultants for the project.
“The proponent has undertaken a preliminary estimate of the total project cost using experienced consultants. The project is estimated to cost the proponent Kshs. 17,731,000,000 (Seventeen Billion Seven Hundred and Thirty-One Million) to implement,” KPC says in a report filled out to the National Environment Management Authority (NEMA).
The new facility comes at a time when President William Ruto seeks to lower the high cost of cooking gas, which has increased by about 30 percent in the last few years, blamed on the depreciating local shilling as well as the Ukraine-Russia war.
However, prices could drop as more firms invest in LPG plants in the coastal towns.
In February 2023, petrochemical company Eleven Energy sought approval from the National Environment Management Authority (NEMA) to set up a gas storage facility in Mombasa.
It will sit on Plot No. L.R. No. 4791 and 4792/VI/Mainland North, Kipevu area.
“Following the rise in demand of LPG within the country, the project Proponent Eleven Energy Limited, a company that specializes in sales of LPG in Kenya proposes to construct and operate a bulk LPG Import and Storage facility to be located off newly developed and finished Makupa causeway in Kipevu area, Changamwe Sub -County within Mombasa County.”