- One of the projects that is expected to reshape the region’s oil sector is the Kisumu Oil Jetty.
- The new pipeline will also help to improve the reliability of fuel supply to Uganda, Rwanda and eastern Congo.
Kenya Pipeline Company (KPC) is undertaking some major infrastructural projects in a plan to consolidate its position as a market leader in oil and gas commerce in the East African region.
One of the projects that is expected to reshape the region’s oil sector is the Kisumu Oil Jetty.
The construction of the Sh1.7 billion oil jetty began this month and will take half-a-year to complete.
The regional oil infrastructure project, which is being undertaken by a Kenyan firm, Southern Engineering Company, is expected to boost efforts to turn Kenya into the region’s petroleum hub.
The oil jetty’s target market will create an integrated marine fuel transportation, making it more efficient and commercially viable to reduce transportation costs for the oil marketing companies.
The jetty’s primary market will be around the lake region and expanding the petroleum export market into neighbouring Uganda, Rwanda, Burundi and the mines in northern Tanzania.
The project is also expected to increase throughput in Kisumu by a billion litres a year in the first phase and up to three billion litres a year by 2028.
It has been made possible following the completion of the new Sinendet-Kisumu oil pipeline in April last year.
The new pipeline has enhanced the availability of oil products in western Kenya and the export markets of Uganda, eastern Democratic Republic of Congo, Rwanda, Burundi and northern Tanzania.
The line has increased product flow to the Kisumu depot to 350,000 litres an hour from 110,000 litres an hour, increasing the country’s competitive edge in the region.
BOOST TO AGRICULTURE
The additional product has enhanced the optimisation of tank utilisation in Kisumu, which had stood at only 30 per cent for many years.
The full tank capacity for the port town is 39 million litres.
This is enough to meet the annual demand for petroleum products in western Kenya, which stands at 1.1 billion litres, whereas the regional demand is some 3.3 billion litres.