Page 14 - DMEA Week 26 2022

DMEA NEWS IN BRIEF DMEA

product is not returned. and are important to be indicated as no one case filed by H Young & Company (East
The owners/importers of the missing can take 1.3 million gallons by tubes, bottles, Africa) Ltd for lack of merit.
products are said to be demanding an or gallons out of the LPRC compound. The judge said the company failed to
immediate replacement of their products in FRONTPAGE AFRICA point out how the Public Procurement
order to enable them to remain in business Administrative Review Board erred by
and avert a possible collapse of the sector upholding the contract granted to Comacon
and a subsequent economic disaster that the PETROCHEMICALS Ltd in a joint venture with Gulf Energy Ltd.
country is not prepared for. The judge said the board cannot be faulted
It remains unclear what the LPRC did with Marjan petchem plant 95% for reaching the decision it did after according
the automotive gas oil (AGO), but sources all the parties a hearing and correctly applying
within Petro Trade say the LPRC informed productive last year the law of evidence.
them that Aminata has 400,000 gallons of “It is clear from the foregoing that the
their product while Nexium has 300,000. The caretaker of Marjan Petrochemical board properly addressed itself to the evidence
“How is that possible when we are not Company said despite the restrictions on gas availed to it, analysed it, and reached a finding
informed. Where is the remaining product, feedstock in order to supply domestic gas in it did. This court, cannot sit on appeal on
then?” the inside source asked rhetorically. winter, the company’s yield was 95% of its the issue to determine the sufficiency of the
According to the inside source at Petro nominal capacity in the calendar year of 1400 evidence or otherwise,” he said.
Trade, their suppliers are now afraid to which ended on March 20. Evidence presented in court showed that
supply them and they are not going to According to Shastan Commercial five companies participated in the tender
bring any product into the country for now. Investment Company, Mehran Banazadeh and H Young & Company (East Africa) ltd
This, according to them, might cause an told the Annual General Assembly of Marjan said it was notified by KPC in February that
acute shortage on the market and create an Petrochemical Company on Saturday that had attained minimum qualifying marks in
unbearable situation for citizens. the company operated at 95% of its nominal its technical proposal and was invited for the
FrontPageAfrica could not get comments capacity during the previous calendar year opening of the bids.
from LPRC on the missing product. However, despite shortages in gas feedstock supply and BUSINESS DAILY
FrontPageAfrica has seen a June 17, 2022 construction of another methanol plant in the
communication from the Deputy Managing region.
Director of LPRC, Mr. Adrian Mario, Presenting the financial reports to the TERMINALS & SHIPPING
to the CEO of Petro Trade, Mr. Ibrahim assembly, he added: “The income from the
Hamdan, informing him that “upon LPRC’s sale of the products has doubled, but the Sipchem signs logistics
reconciliation of your stocks, our book increase in gas prices, as the most important
balance indicates that you have 1,474.576 component in the cost price of methanol, has agreement with Maersk
gallons of AGO”. had a great impact on rising costs.”
The inside source at Petro Trade says their SHANA Sipchem has signed an agreement with A.P.
management is now wondering how their Moller-Maersk in Saudi Arabia that will
product was given out or sold without their see the two parties collaborate on ocean
consent. PIPELINES transportation and storage through the King
According to the source, the product went Abdullah Port integrated logistics park.
missing between April and March despite KPC tender lawsuit Through this agreement, Sipchem will export
the LPRC book reconciliation as of June 17 its products to wider international markets.
indicating that they had over a million gallons. dismissed Commenting on the agreement, Sipchem’s
Product lifting from the LPRC terminal VP Commercial, Eng. Mater Aldhafeeri,
is subject to effective electricity to run the The High Court has dismissed a case said: “This new collaboration with Maersk, a
pumps & loading rack, technical team to open challenging an Sh1.08 billion tender for leading integrated logistics company, reflects
tanks & operate pumps and loading rack, the construction of a line to connect Kenya Sipchem’s great interest in bringing its diverse
importer or distributor delivery order, LPRC Pipeline Company (KPC) to the Kenya range of products to a wider global market
TLO, and security to open gates. Petroleum Refineries Ltd at Changamwe in through ports, logistic hubs, and new shipping
All of the above procedures are under Mombasa County. lines and sea lanes. This new business
LPRC Operation & Marketing department Justice Anthony Ndung’u dismissed the direction will see us take full advantage of

P14 www. NEWSBASE .com Week 26 30•June•2022