Kenya: Refinery Wants Out of Pipeline Union
03.04.2019 - NEWS

March 04, 2019 [The East African] - Three years after the Kenya Pipeline Company took over the Kenya Petroleum Refinery Ltd in a government-forced merger, the lease under which the union was created is set to expire in March.


This creates uncertainty about the operations of KPRL, which was converted into a storage facility after halting refining operations in 2013.

Since the exit of Indian investor Essar Energy in 2014, KPRL has largely remained a liability for Kenyan taxpayers, who had to shoulder its financial burden. In 2017, the government offered the refinery to KPC under a three-year lease.

Now, KPC is pushing for a renewal of the lease after the facility turned out to be an important revenue stream, earning it $20 million over the past 20 months.

Hudson Andambi, KPC acting managing director, said the process of renewing the lease is ongoing.

He said that additional storage capacity has helped improve operational efficiency and flexibility.

 

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