M a r k e t N e w s
Kenya Pipeline Corporation to construct US$ 343m oil pipeline
Posted on : Monday, 20th July 2015
Kenya Pipeline Corporation (KPC) is yet to construct a 450Km pipeline from Mombasa to Nairobi that will help them meet the rising demand for fuel in the market and complement the existing line and replace it ultimately.
The pipeline project by KPC has received funding worth US$ 343m from a consortium of local and international banks namely; Co-operative Bank, CfC Stanbic Bank, Citibank (Kenya), Commercial Bank of Africa, Standard Chartered Bank and Rand Merchant Bank.
“A consortium of local and international banks has coordinated, underwritten and arranged a long-term facility of US$343m for the Kenya Pipeline Company,” said one of the financiers in a statement.
The statement further said that the facility signed on July 15 with senior representation from all the banks, will be used to fund the replacement of KPC’s 450 kilometre Line 1 multi-product fuel pipeline running from Mombasa to Nairobi.
Fuel products imported through Mombasa Port are currently distributed through trucks. The new pipeline is set to reduce strain for space associated with storage of the products pitting oil marketers and suppliers.
The pipeline is projected to be complete by September 2016.
KPC has a distribution channel for petroleum products not only in Kenya but also in neighbouring countries like Rwanda, Burundi, South Sudan and Tanzania.
Source : constructionreviewonline.com
