September 24, 2018 [Kallanish Energy] - Construction of a new oil terminal at Kenya’s main port of Mombasa soon will commence, following the award of a $400 million contract to a Chinese contractor, Kallanish Energy learns.
Kenya Ports Authority (KPA) acting managing director Daniel Manduku said last week the contract was awarded to China Communications Construction Co. Construction is estimated to take 18 months.
The new Kipevu Oil Terminal (KOT) will have the capacity to handle four vessels of up to 100,000 dead weight tonnes each, increasing the port’s oil-handling capacity from the current 20,000 DWT. It will also feature a liquefied petroleum gas (LPG) line, which is expected to help stabilize gas supply in the country.
The expansion project is part of the Kenyan government’s strategy to secure the country’s energy needs.
“We are soon embarking on construction of the Kipevu Oil Terminal (KOT) for discharge of fuel to the tanks owned by Kenya Pipeline Co. and other oil companies at a cost of about $400 million,” he said.
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