Kenya Pipeline Company to devolve its fuel lines

Trucks transporting petroleum park outside the Kenya Pipeline Company depot in Nakuru on May 4, 2015. The company plans to spend Sh22 billion to devolve oil to counties across the country . PHOTO | SULEIMAN MBATIAH | NATION MEDIA GROUP 

In Summary

• The Kenya Pipeline Company’s Sh22 billion plan to devolve oil to counties across the country has entered a new phase, with the State firm now looking for least cost routes to target areas.
• An advertisement last week called for expression of interest from local and international firms to carry out feasibility studies that will enable the rolling out of the plan set to commence later this year.

By EDWIN OKOTH
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The Kenya Pipeline Company’s Sh22 billion plan to devolve oil to counties across the country has entered a new phase, with the State firm now looking for least cost routes to target areas.

KPC is also seeking to know the current and projected product demands in the regions earmarked for the plan set to reduce fuel transit cost by close to half.

An advertisement last week called for expression of interest from local and international firms to carry out feasibility studies that will enable the rolling out of the plan set to commence later this year.

“Kenya Pipeline Company Limited invites local and international firms to express interest to undertake a comprehensive feasibility study and preliminary engineering design for development of pipeline network to the counties,” read the advert.

Taita Taveta, Busia and Migori are among the counties being considered for the first phase of ‘devolving fuel’ while Laikipia and Nyeri, as well as Kericho and Bomet are being considered jointly for a similar plan.

LARGE CAPACITY

The strategy also involves the establishment of large capacity depots, holding up to 20 million litres each.

Winning firms will be expected to undertake environmental impact assessment studies in the Mount Kenya, the Upper Eastern region, lower Eastern and the upper Coast, south Nyanza and south Rift as well as Western regions.

The firm will also develop preliminary engineering designs, which will include hydraulic analysis, determination of optimal pipeline sizes, depot capacity and other associated infrastructure.

Last year, the then acting managing director Flora Okoth told the Daily Nation the move will see fuel disseminated into the strategic locations in a safe and more efficient way for the benefit of consumers.

“Just like economic growth pattern in Kenya followed the railway infrastructure, you will realise that such developments create more impact than just the pipeline network. This project will eventually spur other developments through available and steady supply of fuel. Transport costs will fall by close to half,” Ms Okoth told Smart Company.