Investors have expressed interest in the proposed liquefied petroleum gas (LPG) storage facility in Mombasa, which could become a shared pool for importers.
Fossil Supplies Ltd confirmed this week that it had submitted an environmental impact assessment report for approval to the National Environment Management Authority (Nema).
This came several months after Tanzania’s Taifa Gas Investment applied for the project’s construction license.
On Tuesday, Nema published a gazette notice inviting public comment on the proposed project, which will be located on 3.5 acres of land leased from Kenya Railways Corporation in Changamwe, near the government-owned Kenya Pipeline Company depot.
The total cost of the project is KES 1.97 billion ($16 million).
“The liquefied petroleum gas facility, being a common user, will enable the oil marketers access an alternative for importation and supply of liquefied petroleum gas at a competitive price to the end users,” said Fossil Supplies in regulatory filings.
Fossil Supplies already operates 94 petrol service stations in Kenya and Uganda through Petrocity Group.
It sells its LPG in Petgas-branded cylinders.
If approved, its new import handling and storage unit will help relieve demand pressure in the country by reducing stock-outs.
This will end Africa Gas and Oil Ltd’s monopoly, which owns the 10,000-tonne LPG storage facility that handles more than 90% of imported LPG, with smaller players paying to use it. Shimanzi Oil Terminal, which the government owns, has a capacity of 1,400 tonnes.
Kenya has an LPG consumption demand of 300,000 metric tonnes per year.
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