Oil marketers are now rubbing their hands in glee after the Kenya Pipeline Corporation has revealed plans to lease oil storage facilities from private investors in Nairobi and Mombasa a move that will improve product distribution and supply.The company has further announced its plans of increasing the capacity of fuel in its Nairobi terminal to cater for extra petroleum products when a new pipeline from Mombasa becomes operational in 2016.
The oil company plans to lease storage facilities to operational terminals in Nairobi and Mombasa, this will oversee the storage of 30 million litres and 100 million litres in the said terminal respectively. The KPC now runs the facility owned by international storage logistics firm VTTI under a five-year lease deal.
The newly leased facility is a major reprieve to the marketers who have previously complained about the strained national tanks at the Kipevu oil storage facility.Oil marketers have been paying tough penalties and furthermore deprived of reliable storage facilities to suit their demands to service the East African region. The terminal which is linked to the company’s main line from Mombasa to Nairobi allows products to be pumped from the coastal town to Nairobi, Eldoret and Kisumu. With the advent of oil discovery and drilling in East Africa especially Kenya, better storage facilities completes the equation of good petroleum products. Currently, Tullow oil is drilling oil in the Turkana county while ERHS Energy targeting at least 65 million barrels in the first well.