The new Kipevu Oil Terminal (KOT), valued at KSh40 billion, is 96% complete and should be operational by the end of the next month.
The executor, China Communications Construction Company (CCCC), anticipates delivering the building to Kenya Ports Authority before the year is up.
After that, Kenya Pipeline Company (KPC) will operate the terminal, which will take the place of the current Kipevu Oil Terminal, which is 50 years old.
The new terminal can simultaneously store and discharge volumes from four vessels (three carrying petroleum and one carrying LPG), which reduces vessel waiting times. Only one ship can be stored at a time in the old terminal.
Therefore, it is anticipated that the expanded capacity will shield importers from demurrage and surcharges, potentially lowering the cost of importing gasoline goods and the final pump pricing.
The modernized, contemporary oil terminal should be able to handle ships with a dead weight tonnage of up to 200,000. It will be able to handle crude oil, heavy fuel oil, and three different kinds of white oil products, including DPK aviation fuel, AGO diesel, and PMS gasoline. It will also have both subsea and land-based pipes connecting it to the storage facilities in Kipevu.
Kenya will increase its ability to handle transit petroleum products to Uganda, Rwanda, and Burundi starting in January 2022 from the present 35,000 tonnes upon completion of the new Kipevu Oil Terminal in Mombasa.