Page 7 - AfrOil Week 05 2022
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AfrOil COMMENTARY AfrOil
At present, Nigeria is spending around NGN3 The latter facility includes a 3mn tonne per
trillion ($7.23bn) per year on subsidies, while year (tpy) fertiliser unit that will produce ammo-
refined product imports account for around nia and urea for use in the agricultural sector,
30% of foreign exchange spending. as well as petrochemicals such as polypropylene
With Dangote buying up to 70% of its feed- and polyethylene.
stock in naira, the Central Bank of Nigeria Such figures paint a bright future for fuel and
(CBN) anticipates that the government will no fertiliser availability in Nigeria, and they may
longer need to import fuel, with another 10% of also serve to provide Abuja with the support it
forex spending to be saved by the launch of the needs to remove subsidies and ease the strain on
integrated Dangote Petrochemical unit. government coffers.
PIPELINES & TRANSPORT
KPA says Kipevu Oil Terminal is attracting
healthy interest from oil, shipping firms
KENYA THE Kenya Ports Authority (KPA) this week (KPRL) and Kenya Pipeline Co. (KPC).
said that the $350mn Kipevu Oil Terminal Set to be completed in April, the offshore
(KOT) at the Port of Mombasa is already attract- facility will be able to load and offload very large
ing interest from shipping and oil companies sea tankers of up to 200,000 DWT that carry
ahead of its April launch. all categories of petroleum products, including
The company’s head of communications, crude oil, white oils and LPG.
Haji Masemo, said that the Ugandan affiliate of In December, Kenyan President Uhuru Ken-
France’s TotalEnergies and Ghana Petroleum yatta, accompanied by visiting Chinese Foreign
Authority (GPA) would be carrying out inspec- Affairs Minister Wang Yi, said the new jetty will
tions with an intention to utilise the facility. He enhance supply and ensure the price stability of
added that Sturrock Shipping Co. and Inchape petroleum products in Kenya and the region by
Shipping have already said they will offload oil replacing the 50-year-old onshore facility of the
at the terminal. same name.
The construction of the 770-metre-long jetty, When operational, the new offshore jetty will
now 98% complete, according to KPA’s acting save the country in excess of KES2bn ($18mn)
managing director John Mwangemi, is wholly per year in demurrage costs incurred by oil ship-
funded by the KPA and implemented by China pers, thereby contributing to a significant reduc-
Communications Construction Co. tion in fuel pump prices. “Once complete, the
The unit includes five subsea pipelines that new facility will be able to reduce not only the
were buried 26 metres beneath the seabed to cost of fuel but also to ensure that Kenya is able
ensure they are not disturbed by future dredg- to consistently have an adequate supply of fuel
ing. It is connected by pipeline to storage tanks for our needs and [the] development needs that
owned by Kenya Petroleum Refineries Ltd of our people,” Kenyatta explained.
The Port of Mombasa imports oil and fuel via the Kipevu and Shimazi terminals (Photo: Twitter/@Kenya_Ports)
Week 05 02•February•2022 www. NEWSBASE .com P7
