Kenya Pipeline Company to develop US$125mn LPG facilities in Nairobi and Mombasa

KPC PThe move is set to increase the use of cooking-gas in Kenya. (Image source: Adobe Stock)Kenya Pipeline Company (KPC) has revealed plans to build US$125mn facilities to handle and store liquefied-petroleum-gas (LPG), aiming to increase the use of cooking-gas in the East African country

As reported by Bloomberg, Joe Sang, managing director of Kenya Pipeline Company, said that the Kenyan government has removed VAT on cooking gas and subsidised the cost of six-kilogram cylinders to make the fuel more affordable to the citizens of the country.

Sang noted that Kenyan government is considering bids to build LPG plants in Nairobi and Mombasa. In a statement to the source, he said that the US$65mn depot in Mombasa and the US$60mn plant in Nairobi are set to have the capacity to store 25,000 tonnes and 10,000 tonnes of gas, rail and truck loading and bottling facilities respectively.

Most of the Kenyan people use cheaper charcoal, firewood and kerosene as fuel. According to the World Bank, currently, about 30 per cent of Kenyans live in towns, with the number expecting to be quadrupled by 2045, thus enhancing the need of convenient and inadequate LPG storage, distribution and supply network, said the source.

The Energy Regulatory Commission has estimated presently Kenyans consume between 5,000 and 23,750 tonnes of LPF each month. As mentioned by the source, the Kenyan government aims to increase usage to 15kg from the current four kilograms per person by the end of 2030.

In order to achieve this development, Kenya Pipeline Company is seeking to receive finance from development institutions and investors, said Sang to the source.

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