September 23, 2016 [Vivo Energy Kenya] - Vivo Energy Kenya has today opened a 23 million litre diesel storage tank at the company’s Mombasa terminal. The opening of this tank makes Vivo Energy Kenya the oil marketer with the largest diesel storage capacity in the country.
23 million litres of diesel can be ferried by 660 long haul trucks or 535 rail wagons. The company also opened a 5 million litres petrol storage tank.
The opening of these tanks increases the company’s diesel storage to 53 million litres, and Petrol storage to 29 million litres. Increasing diesel storage to this enormous amount, is a sign of growth in the industry with increased volumes being witnessed at service stations, manufacturing and agricultural sectors. Vivo Energy Kenya, is supporting this increased growth through this investment in fuel storage.
Diesel consumption at Shell service stations has grown significantly since November 2012 when Vivo Energy Kenya was formed to distribute and market Shell branded fuels and lubricants. This increased diesel consumption has created the need for additional fuel storage, which is now in place.
In the last three years Vivo Energy has increased the number of Shell service stations in Kenya by 54%, from 112 to 172. The company footprint has seen an increase of service stations across various counties.
The investment will also serve as an avenue of supplementing the current ullage received from the pipeline, and enable Vivo Energy Kenya to support inland and Vivo Energy Uganda business.
With the increased storage capacity, Vivo Energy Kenya will utilise the railway more to transport fuel from Mombasa to Nairobi.
Speaking during the commissioning of the new tanks Vivo Energy Kenya Managing Director, Mr Polycarp Igathe said: “Additional storage will enable Vivo Energy Kenya to support its rapidly growing retail business which has witnessed a 54% growth over the last three years. It also increases flexibility to support inland markets like Uganda.” He added that the company will additionally save money on shipping demurrage costs as fewer fuel tanker discharges will be needed.
The tanks were officially commissioned by the Principal Secretary in the State Department of Petroleum, Mr. Andrew Kamau. Construction of tank number three, with a capacity of 23 million litres of diesel, and tank number four with 5 million litres of petrol took 10 months. The construction was done by local Kenyan contractors and consultants. It was completed safely without any injury or incident.
