Page 12 - DMEA Week 02 2022

DMEA FUELS DMEA

Possible fuel shortage

causes panic in Kenya

AFRICA PETROLEUM products marketing companies at the port.
in Kenya are bracing for gasoline shortages in Kenya last month allowed importation
the capital Nairobi and the western region of the of 30,000 metric tonnes of gasoline as pri-
country. vate cargo, a decision that prompted delays of
The stock-out is attributable to high demand ships that had been scheduled to offload fuel at
during the Christmas holiday season and elec- Mombasa.
tricity supply problems from the Mombasa sea “Discharge of this cargo has pushed forward
port to Nairobi, the Kenya Pipeline Company access of already firmed up petrol cargoes by
(KPC) said. up to five days, which exposes the industry to a
The looming shortages have also been linked petrol stock-out given the already constrained
to the unscheduled discharge last week of a ves- petrol stock position,” said Rubis Energy Group
sel ferrying gasoline in the Mombasa port. managing director Jean Christian Bergerone.
The firms said in a letter to the Ministry of Gasoline supply hitches comes a few days
Petroleum that the ship which ferried the fuel before Energy and Petroleum Regulatory
for one of the local companies pushed further Authority releases the monthly pricing that runs
the discharge of vessels that had been lined up from January 15 to February 15.™

TERMINALS & SHIPPING

Kenyan and Chinese officials

inspect Kipevu Oil Terminal

AFRICA PRESIDENT Uhuru Kenyatta and visiting Chi- reduce not only the cost of fuel but also to ensure
nese officials together inspected the ongoing that Kenya is able to consistently have an ade-
construction of the KES40bn ($354mn) offshore quate supply of fuel for our needs and develop-
Kipevu Oil Terminal, the largest of its kind in ment needs that of our people.
Africa, the presidency said in a press release on “This terminal once commissioned in a few
Thursday (January 6). weeks’ time will result in the saving of almost
The construction of the 770-metre-long KES2bn that we are currently paying every year
jetty, now 96% complete, is wholly funded by because of demurrage occasioned by the long
the Kenya Ports Authority (KPA) and imple- queues of vessels parked outside our harbour
mented by China Communications Construc- waiting to discharge their product,” President
tion Company. Kenyatta said.
Set to be completed in April, the offshore The presidency said that he and the visit-
facility will be able to load and offload very large ing Chinese minister discussed a wide array of
sea tankers of up to 200,000 DWT carrying all bilateral and multilateral subjects, including a
categories of petroleum products including development cooperation framework, regional
crude oil, white oils and LPG. peace and security, and the global fight against
President Kenyatta, accompanied by visiting COVID-19.
Chinese Foreign Affairs Minister Wang Yi, said In related news, Foreign Minister Wang Yi
the new jetty will enhance supply and ensure the announced that Beijing would soon appoint a
price stability of petroleum products in Kenya special envoy for the Horn of Africa, to work,
and the region by replacing the 50-year-old among other things, towards peace in neigh-
onshore Kipevu Oil Terminal (KOT). bouring Ethiopia. Kenya and China also signed a
When operational, President Kenyatta noted number of bilateral agreements during the visit.
that the new offshore jetty will save the country Chinese money accounts for some two-thirds
in excess of KES2bn annually in demurrage costs of Kenya’s external debt, and many people in the
incurred by oil shippers, thereby contributing to East African country fear it may lose control of
a significant reduction in fuel pump prices. key facilities, like the Mombasa port, if Kenya
“Once complete the new facility will be able to fails to repay the loans.™

P12 www. NEWSBASE .com Week 02 13•January•2022