Kenya in Proposal stage for new crude oil pipeline

Source: Oil news Kenya

 Kenya’s active search for contractors to be charged with the responsibility of designing its newly proposed crude oil pipeline has begun. The pipeline is intended to run from Lokichar (Turkana) to the coastal town of Lamu. The project has arisen after Kenya’s defeat to win over Uganda in the deal that was intended to construct a pipeline through Kenya. The deal was won by Tanzania instead of Kenya due to Uganda’s security concerns on the Northern route which was to pass through Kenya and terminate at Lamu.

Kenya’s Energy and Petroleum Cabinet Secretary said in a statement “In our estimation, if all goes well, the pipeline should be ready in 2021. The CAPEX, which can either come down or up, is US$2.1 billion.”

The Ministry of Energy and Petroleum went on to announce: “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.”

Mr. Keter stated that in as much as the project has not reached the financing stage, enquiries have been made in regard to 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.

The Cabinet Secretary explained further that Kenya intends to transport its crude oil supply via trucks and train in the short-term until the construction of the crude oil pipeline has been completed.

Source: Energy global


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