U.S government has expressed support in the construction of an oil pipeline connecting northern Kenya oil fields to Lamu. The project estimated to cost KES2.4 trillion will be built between Lamu Port and Kenya’s oil fields in Turkana Basin, Uganda’s oil fields at Lake Albert’s Basin and South Sudan oil fields.

U.S government has expressed support in the construction of an oil pipeline connecting northern Kenya oil fields to Lamu. The project estimated to cost KES2.4 trillion will be built between Lamu Port and Kenya’s oil fields in Turkana Basin, Uganda’s oil fields at Lake Albert’s Basin and South Sudan oil fields.

The LAPSSET Pipeline Project is expected to have considerable effect on the areas navigating through it. First, it will readily avail crude oil as well as refined petroleum products to the northern and northeastern parts of Kenya, namely counties and towns such as Marsabit and Isiolo, thus reducing their reliance on Mombasa and Nairobi.

Secondly, fuel oil and diesel will benefit agro-industrial projects on the whole corridor, especially along the lower areas of the Tana River Basin. Other projects that could benefit from cheaper fuels include the cement and salt factories currently under feasibility study in the Chalbi Desert by Ewaso Nyiro North Development Authority (ENNDA) in collaboration with the Ministry of Regional Development Authorities.

The LAPSSET Oil refinery will provide employment to a large number of people during its construction besides availing cheaper fuel for both industrial and domestic uses. With anticipated development of agriculture and livestock through proposed irrigation schemes, the benefits of cheaper fuels are expected to maximize the benefits from agricultural and livestock production.

Implementation of Oil Refinery component shall be undertaken by the Ministry of Energy and Petroleum in coordination with LAPSSET Corridor Development Authority. A Special Purpose Vehicles (SPV’s) will be created to attract the participation of Private Sector in developing the Refinery (ies) Project on behalf of the Government of Kenya.

The U.S is also interested in funding expansion of electricity generation capacity and distribution which will help fast-track realization of ongoing power projects to meet growing demand. It is also engaging itself in small hydro power projects and development of renewable projects like solar, wind and hydro projects. These projects aim at reducing the cost of power and create an opportunity for Kenyans to engage in income generating activities. This project will be developed under Power Africa Intiative programme.

The feasibility study for the crude oil pipeline from Hoima-Lokichar-Lamu Port is complete and is awaiting funds to commence construction.  President Uhuru Kenyatta has given an American delegation a month to formulate the method to carry crude oil from Turkana oil fields to Mombasa for processing starting September this year.

 

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