Page 7 - AfrOil Week 36 2022

AfrOil PIPELINES & TRANSPORT AfrOil

The Mombasa-Nairobi pipeline is part of KPC’s network (Image: KPC)

She was speaking to industry stakeholders at a infrastructure while at the same time keeping
public participation forum where EPRA was the products within the reach of the ordinary
seeking views on the tariff application. citizen,” he said. “We will ensure that KPC gets
If EPRA approves the proposed tariff enough to build and maintain infrastructure
increase, it will have the effect of increasing [and] that the public gets products at a fair rate.”
the retail cost of petrol by KES0.54 per litre in KPC believes that the rates it has proposed
Nairobi, KES0.42 cents per litre in Nakuru and are competitive. It said that the proposed tariff
KES0.29 per litre in Eldoret and Kisumu. of KES5.22 per cubic metre per kilometre is 40%
Motorists in Nairobi pay a surcharge of less than the rate for road transport, which is
KES2.07 per litre to cover the cost of transport- currently KES6.7 per cubic metre per kilometre.
ing petrol via the Mombasa-Nairobi pipeline. For fuel dealers from Uganda, who would use
EPRA Director General Daniel Kiptoo said the pipeline from Mombasa and lift the prod-
that the regulator would consider the reasons ucts at either Kisumu or Eldoret, the landed
given by KPC in applying for the tariff hike as cost in Kampala would be $74 per litre of petrol,
well as the views presented by stakeholders, according to KPC. This compares with a landed
including consumers. He said that EPRA has a cost of at least $90 per litre if they were to use
dual mandate, maintaining consumer protec- road transport from Mombasa to Kampala.
tion but also considering the investments that Uganda, northern Tanzania, Burundi, east-
different players have put in place to ensure the ern Democratic Republic of Congo and South
delivery of petroleum products Sudan import petroleum products through
“It is our role to ensure high quality of Kenya. ™

INVESTMENT
Eni set to acquire BP’s assets in Algeria

ALGERIA ITALY’S Eni said on September 7 that it had it commented.
reached agreement with BP (UK) on the acqui- Two of the key assets included in the acqui-
sition of the latter’s upstream assets in Algeria. sition are BP’s stakes in the In Amenas and
In a statement, Eni said it expected the deal In Salah gas blocks, it noted. The UK-based
to help it gain access to additional natural gas super-major has 45.89% and 33.15% stakes in
reserves that could be used to supply European the In Amenas and In Salah blocks, respectively.
markets, while also expanding its own business Both of these sites are operated by Equinor
operations in Algeria. (Norway), and Algeria’s national oil company
The transaction “will allow Eni to increase (NOC) Sonatrach is also a non-operating
its portfolio of assets in the country and, jointly shareholder. They are located in the Southern
with the new contracts of Berkine South and Sahara province and are home to seven fields
Block 404/208 recently signed, will allow new that yielded approximately 11bn cubic metres
and synergic development opportunities, of gas plus 12mn barrels of gas condensate and
mainly focused on increasing gas production,” LPG in 2021.

Week 36 08•September•2022 www. NEWSBASE .com P7