The Kenyan government is offering a stake into the planned construction of a liquefied petroleum gas(LPG)facility in Mombasa to private sector so as to ease the looming gas shortage in the country,
The energy permanent secretary,Mr Patrick Nyoike has said the investment will compliment already ongoing efforts by the Kenyan pipeline company(KPC)to construct an LPG handling plant in Nairobi at a cost of $13.5 million.
The project will also involve construction of 200 metric tonnes of storage bullets in the industrial town of Athi River,located in the out skirts of the Kenyan capital.
*we want to appeal to the private sector to extend our partisanships on the construction of these vital plants that if completed would critically solve our energy crisis*Nyoike siad in the capital last week.
The Mombasa LPG project which will be the main one will involve the construction of 6,000 metric tonnes storage bullets.
A cost study commissioned by the ministry revealed that the entire project will cost anything in the region of $50 million and therefore the ministry's call for private investors.
Already,KPC has entered into an agreement with the Kenya Petroleum Refineries for the development of the two projects.
More private investors are expected to come on board.The two projects are expected tp drastically reduce the cost of LPG in the country through the importation of large shipments of commodity which will result in reduced supply cost through the related economies of scale.
The projects fall under the governments economic Recovery Strategy(ERS)where KPC has been mandated to roll out a massive pro gramme to help ease the cooking gas shortage in the country.
After the two giant projects,the government will through KPC,venture into such plants in hinterland towns of Nakuru,Kisumu , Eldoret, Kakamega and Sagana.
*We are committed to the supply of safe and clean energy resources as it fall in our key mandate as a company*,said Kenya Pipeline Company managing director Mr.George Okungu.*The LPG projects are aimed at reducing over reliance on biomass and electricity*,Okungu further stressed.
The underlining objective of the project is to enhance supply of LPG in the country,promote consumption of clean fuel thereby reducing environmental degradation.
Statistics show that more than 70% of Kenyan households use wood fuel posing a threat to the environment through wanton cutting of trees for use in raw form or charcoal burning.
Therefore for all the willing investors out there.This is a great opportunity for a long term,prosperous investment in Kenya and the region of East Africa as well.This does not only save the environment,but provides better living conditions for the people with clean fuel and energy.
Chris in Kampala