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“Kenya” uses “Aramco” to enhance its supplies of liquefied gas

May 21, 2024

Kenya is seeking to enhance its supply of liquefied petroleum gas, through talks with Saudi Aramco to obtain a floating facility. With the aim of reducing fuel prices in the East African country.

The CEO of Kenya Pipeline said that the ship that will be anchored off the port of Mombasa will be able to process 30,000 tons of fuel, and this facility will be used temporarily as a storage and packaging station, noting that Kenya will issue tenders to build the permanent facility within the next two months.

The facility is scheduled to contribute to increasing gas supplies when Kenya begins building a liquefied petroleum gas plant, which will take three years to establish. This project comes as part of Kenyan President William Ruto's efforts to reduce the cost of cooking gas.

In 2023, Ruto pledged to reduce the price of the six-kg cylinder by up to 90%.

With the risk of accelerating inflation in the country, prices of maize, Kenya's staple food, are under pressure as a result of drought caused by the El Niño phenomenon in South Africa and floods in the eastern regions.

Under the deal, Kenya will build a four-kilometre pipeline linking the LPG facility to a ship docking station.

On the other hand, Kenya Pipeline signed a transportation and storage agreement with the Uganda National Oil Corporation.

This agreement will ensure the transportation of Ugandan oil, which was purchased directly through Vitol Group, starting next June.