Construction of Sh40 Billion Oil Terminal in Mombasa Will Commence Shortly

Construction of Sh40 Billion Oil Terminal in Mombasa Will Commence Shortly. China Communications Construction Company, operator of Kenya’s new railway, won the bid to build Sh40 billion Kipevu Oil Terminal (KOT) in Mombasa port which has the capacity to handle four vessels upto 100,000 DWT (Dead Weight Tonnage). The Liquefied Petroleum Gas (LPG) line will help stabilise gas supply in the country, according to the East African nation’s port authority. Kenya and China signed the infrastructure deals that includes the establishment of a special economic zone at Dongo Kundu in the port city of Mombasa, where the new terminal will be situated.

The construction of the Kipevu Oil Terminal (KOT) for the discharge of fuel to the tanks owned by Kenya Pipeline Company  and other oil companies at a cost of about $400 million (Sh40 billion). Mombasa port currently has only two oil terminals that are ageing and too small to handle large quantities of imported oil and gas. The KOT will supplement the two facilities at Shimanzi and the old Kipevu terminal.

Construction of the oil terminals is part of KPA’s expansion programme that is seen to be critical to securing the country’s energy needs. KPA has also started construction of the second container terminal using a Sh30 billion loan from Japan International Co-operation Agency (JICA).

Construction of the first phase of the second container terminal, with additional capacity of 550,000 twenty-foot equivalent units (TEUs) every year, is complete. The second phase will offer additional capacity of 450,000 twenty-foot equivalent units’ containers when completed, taking the total capacity to one million twenty-foot equivalent units by 2021.

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