October 19, 2017

Construction of a new oil terminal in Kenya to cost US$ 120m

Niras, an engineering firm based in Denmark has been awarded a contract by the Kenya Ports Authority for the design of a new oil terminal that will replace the existing Kipevu Oil Terminal (KOT). Once the design stage of the project is over, another firm will undertake construction of the terminal at a cost of US$ 120m.

Niras is expected to design the new terminal at a cost of US$ 1.7m. Niras will be in charge of supervising the construction works of the project. The new terminal will be four times larger than KOT, which will be shut down once the construction of the new one has been completed. This will be done in 2017 when the new terminal will be ready for use.

This project is being undertaken to meet the growing demand for petroleum products in the region. This will also allow offloading of tankers with a capacity of 200,000 metric tonnes, improve capacity and efficiency. The new oil terminal will be built at a new location and will be able to cater to four ships up from the current capacity of one ship being handled by KOT.

Kipevu Oil Terminal is currently the country’s primary facility receiving imported refined petroleum products. Its current capacity is not adequate to meet regional demand for petroleum products estimated at 450 million liters monthly. KOT does not only serve Kenya but also other neighbouring land-locked countries of East and Central Africa.

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