Kenya proposes own crude pipeline

Kenya has begun its search for contractors to design its newly proposed crude oil pipeline. The line will run from Lokichar in Turkana to Lamu.

Energy and Petroleum Minister Charles Keter stated: "In our estimation, if all goes well, the pipeline should be ready in 2Q21. The CAPEX, which can either come down or up, is US$2.1 billion."

This new pipeline project arose after Uganda decided to construct and lay its line through Tanzania instead of Kenya due to security concerns.

The Ministry of Energy and Petroleum announced: “The main objective of the FEED is to perform the necessary designs for all engineering disciplines for the crude oil export pipeline system, which shall include all the activities and deliverables as will be detailed in the Request for Proposal.”

Keter stated that although the project hasn’t reached the financing stage, enquiries have been made regarding the pipeline. "There are companies who have visited us; financial institutions. Even last year, I think International Finance Corporation (IFC) had shown some interest, as has African Development Bank. These are ready. But they were waiting for the decision on which route we are going to go," Keter stated.

In the meantime, Keter explained that Kenya intends to transport its crude oil supply via trucks and train until the pipeline has been completed.

Edited from sources by Stephanie Roker

Sources: Standard Digital, The Star, Chronicle

Read the article online at: https://www.worldpipelines.com/business-news/09052016/kenya-proposes-own-crude-pipeline/