Mombasa Gas receive Sh2.5b from the World Bank for LPG terminal
Lewis Njoka @LewisNjoka
Mombasa Gas Terminal has raised Sh2.5 billion from the World Bank for construction of the first phase of a Liquefied Petroleum Gas (LPG) import and storage terminal.
In a statement, the company which specializes in the importation, storage and marketing of LPG, said the terminal will enable a sustained increase in the uptake of clean energy fuels in the country.
“We confirm that we have received a facility from the World Bank for the Sh2.5 billion ($23m) Phase one of our bulk LPG import and storage terminal.
Storage capacity
The Second phase will complete the storage capacity to 22,000 metric tons or more with annual throughput capacity of 400,000 metric tons per annum,” said Mombasa Gas Terminal Managing Director, Julius Riungu.
“This project will underpin Kenya’s ambitious goal for sustainable economic development.
We are aiming to complete construction of Phase One and begin operations within six months,” he added.
Riungu said the terminal would serve both industrial and domestic users through dealer networks and will support the Big Four agenda by powering manufacturing and the other three pillars through reticulated gas systems.
The new terminal will include a direct mooring access for very large-sized LPG carriers, storage and associated infrastructure that will have multiple loading points for transfer of LPG to road and rail transport.
Several global LPG market players are in discussion to participate in long-term partnership with the project, according to the gas importer.
A 2019 study by the Ministry of Energy shows that 93.2 per cent of rural population still uses solid fuels as the primary fuel source.
Households that use LPG as the primary fuels source, according to the study, on average use 42 per cent of the amount of charcoal used by households that use charcoal as the primary fuel source.
The current LPG market in Kenya is over 300,000 metric tons per year.
It is estimated that the potential market in East Africa will be over 1,000,000 metric tons by 2027as infrastructure constraints are removed and LPG becomes an affordable and more accessible.
