Vivo Energy Kenya is seeking regulatory approval to overhaul part of its liquefied petroleum gas (LPG) storage infrastructure at its Shimanzi fuel terminal in Mombasa, replacing ageing tanks with newer, lower-capacity units in what appears to be a safety-driven modernization of one of Kenya’s key coastal energy hubs.
- •According to an Environmental Impact Assessment (EIA) study report submitted to the National Environment Management Authority, the company plans to decommission two above-ground LPG tanks with a combined capacity of 515 metric tonnes and install four new bullet tanks with a total capacity of 400 metric tonnes.
- •The move reduces total storage capacity by 115 metric tonnes, roughly 22%, at a time when the government is aggressively pushing LPG consumption nationwide.
- •Under Kenya’s National LPG Growth Strategy launched in October 2023, the government aims to raise annual per capita LPG consumption from 6.5 kilograms to 15 kilograms and increase national penetration from 24% to 70% by 2028.
Rather than expand capacity, Vivo Energy's project signals a pivot toward newer infrastructure built to updated international safety standards. The proposed tanks will feature secondary containment bunds, automated emergency shutdown systems, gas detection alarms and fixed water deluge firefighting systems.
The EIA also details strict permit-to-work controls, corrosion protection regimes, preventive maintenance schedules and regular integrity inspections — reflecting tightening oversight of petroleum infrastructure in urban industrial zones.
The storage review comes against a backdrop of strong LPG demand growth driven by policy reforms.
According to government data released in December, LPG consumption rose to 360,594 metric tonnes in 2023, up from 333,830 metric tonnes in 2022, while per capita usage increased from 6.5kg to 7kg. Authorities have also zero-rated taxes on LPG and are investing in storage and import infrastructure to support scale.
The state is partnering with the private sector to develop a common-user LPG import facility at Kenya Petroleum Refineries Ltd and has adopted an Open Tendering System aimed at stabilizing supply and pricing.
The policy thrust suggests demand growth will continue, even as operators recalibrate how and where they hold inventory.
The Shimanzi terminal sits adjacent to the Port of Mombasa, in a dense industrial zone near commercial and residential neighborhoods. Hazardous cargo movements through the area have historically raised safety and congestion concerns.
The EIA proposes restricting oversized tanker deliveries to off-peak hours between 10 p.m. and 5 a.m., in coordination with the Kenya Ports Authority and local traffic police. Route inspections, traffic marshals and advance warning systems are included in mitigation measures.
Mombasa remains the primary entry point for petroleum products destined for Kenya and landlocked regional markets including Uganda and Rwanda, making coastal storage infrastructure strategically important for regional supply chains.
Under Section 59 of the Environmental Management and Coordination Act, NEMA has invited public comments before making a determination.
The EIA flags risks including accidental LPG leakage, fire and explosion hazards, worker safety exposure and waste generation during decommissioning. Mitigation measures include integrated emergency response planning with county fire services and regular drills aligned with off-site responders.
