The Kenya Pipeline Company (KPC) has begun upgrading the facilities owned by Kenya Petroleum Refineries Limited (KPRL), seeking to boost its storage capacity.
Upgrade of the refinery is aimed at cutting perennial inefficiencies in the country’s supply chain, which results in high pump prices.
Increased storage capacity at KPC is expected to save oil marketing companies millions of shillings paid to shipping lines as demurrage charges. About 254 million litres of the storage are reserved for refined products while 233 million litres are for crude.
The Changamwe-based KPRL has 45 tanks with total storage capacity of 484 million litres. It became idle in September 2013 when Kenya opted to start importing processed oil.
As Business Daily reports, KPRL was placed under the management of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar failed to revive the country’s only oil refinery.