Kenya’s sole oil-importing facility is set for decommissioning following the contracting of Danish engineering firm Niras to oversee the construction of a new oil terminal.
Barely two months after the East African nation revived plans for the construction of an offshore fuel loading and offloading facility, State-owned Kenya Ports Authority (KPA) contracted Niras as the consultant for a new oil terminal in Mombasa to replace the 50-year-old Kipevu oil terminal.
The preliminary design work for the new terminal is estimated to cost $1.7-million, while construction will cost $120-million. The project is set for completion in 2017.
KPA head of project development and management Daniel Amadi says the project is aimed at quadrupling Kenya’s oil import capacity to meet growing demand in the country and the region.
The new terminal, to be located adjacent to the existing one, will handle four ships of up to 150 000 dead weight tonnes (DWT), up from the current capacity of one ship with a maximum 100 000 DWT. Increasing capacity will allow larger quantities of refined oil products to be imported, while improving efficiency.
The fact that only one vessel can dock and offload at Kipevu has been a major cause of high fuel prices in Kenya, owing to oil companies incurring huge demurrage costs.
Niras is to design the new terminal, prepare tender documents for the constructions works, including the many electrical and mechanical installations, such as pipelines and loading arms, and supervise the entire construction works.
Niras business unit director Jesper Harder adds that the infrastructure at many African ports is often inadequate and is deteriorating, despite the fast-growing economies on the continent, which provides an opportunity for Niras.
The deci- sion to replace the Kipevu terminal, the country’s primary facility for receiving imported refined petroleum products, comes at a time when demand for petroleum products in Kenya and the East African region is growing significantly.