Sh 2.5bn has been injected by the World Bank private financing arm, the International Finance Corporation (IFC) for the construction of a liquefied petroleum gas (LPG) import and storage terminal.
Mombasa Gas Terminal (MGT) Managing Director Eng. Julius Riungu confirmed the report and said the funding paves way for the completion of the project’s first phase. The project underpin’s Kenya’s ambitious goal for sustainable economic development.
“We embarked on the Mombasa Gas Terminal project to reduce supply constraints and improve the affordability and accessibility of clean fuel usage in the country for both industry and households. We at MGT are very excited at the possibilities that we will create an opportunity for our fellow Kenyans to improve the quality of their environment and their health,” said Eng. Riungu.
Universal access to modern cooking solutions
The terminal is expected to increase the country’s uptake of clean energy fuels and aligns with Kenya’s target of achieving universal access to modern cooking solutions by 2030. Supply of cooking gas is set to increase upon completion of the project.
Africa Gas and Oil Ltd (AGOL) facility was built to allow for bulk imports of cooking gas to lower unit costs through economies of scale and curb shortages, which had been made difficult by the smaller import terminal at Shimanzi. Phase one of the project is set to begin operations within six months. Phase two works on the other hand is set complete the storage capacity to 22,000 metric tons or more with an annual throughput capacity of 400,000 metric tons.
The new terminal will include direct mooring access for large-sized LPG carriers, storage and associated infrastructure that has multiple loading points for the transfer of LPG to road and rail transport. Further, the terminal is tipped to end infrastructure constraints in the LPG value chain and promote the accessibility and affordability of the product.
