Construction of Kenya’s new KSh40 billion Kipevu Oil Terminal(KOT) is 96% done, with the facility expected to ready for operations by end of next month.
China Communications Construction Company (CCCC), the executor, is expected to hand over the facility Kenya Ports Authority before the year closes.
KPA will then handover the terminal to Kenya Pipeline Company (KPC) which will operate it, replacing the current 50-year-old Kipevu Oil Terminal.
The new terminal has the ability to hold and offload volumes from four vessels (three petroleum and one LPG) at once, hence save on the vessel waiting time. The old terminal holds only a vessel at a time.
The increased capacity is thus expected to save importers from demmurage and surcharges, hence a possible drop in the cost of importing fuel products and the final pump prices.
The upgraded modern oil terminal is expected to have a capacity to accommodate vessels of up to 200,000 DWT (dead-weight tonnage). It will also have both subsea and land-based pipelines connecting it to the storage facilities in Kipevu, and the capacity to handle crude oil and heavy fuel oil as well as three types of white oil products — DPK-aviation fuel, AGO-Diesel and PMS-Petrol.
Completion of the new Kipevu Oil Terminal in Mombasa will see Kenya double its capacity to handle transit petroleum products to Uganda, Rwanda and Burundi starting January 2022 from the current 35,000 tonnes.