Page 16 - DMEA Week 12 2021

DMEA NEWS IN BRIEF DMEA

head the other way. Derived from crude, processing,†he added. QP signs long-term deal to
naphtha is used to make plastics and blend The team through, Kenya National
with gasoline, while middle distillates, also Highways Authority (KeHNA) Chairman supply LNG to Sinopec
made from crude, include jet fuel and diesel. Engineer Wangai Ndirangu said the
Vessel charterers or owners who are government has allocated Sh17 billion to Qatar Petroleum today entered into a 10-
unwilling to wait for the blockage to clear repair the road for effective transportation of year LNG Sale and Purchase Agreement
can opt to sail around South Africa, although goods. (SPA) with China Petroleum & Chemical
that’s a much longer route that would take Ibui however said that the Lamu – Corporation (Sinopec) for the supply of 2
more time and boost costs. An ocean voyage Garsen – Garissa road is an alternative route million tons per annum (MTPA) of LNG to
from the Persian Gulf to London takes 10 until the completion of the railway, pipeline the People’s Republic of China.
more days via the Cape of Good Hope than and road project. The SPA was signed by His Excellency Mr.
the canal, according to an online presentation Garissa Governor, Ali Korane said the Saad Sherida Al-Kaabi, the Minister of State
from the World Shipping Council. county government would fully support the for Energy Affairs, the President and CEO of
Still, pipeline networks will help the project which covers 400 km stretch within Qatar Petroleum, and Mr. Zhang Yuzhuo, the
industry bypass the impact of the blockage, Garissa County. Chairman of Sinopec Group, during a virtual
providing a route for continued crude “I fully support this project because it ceremony attended by senior officials from
transit. The Sumed pipeline in Egypt, with will help our people. The county government both sides.
capacity for south-to-north flows of up to will provide land, waive cess for construction Under the agreement, LNG deliveries
2.8 million barrels a day, links the Red Sea to materials and provide security for smooth will commence in January 2022, and will be
the Mediterranean, as does the smaller, bi- implementation of the project that will turn delivered to Sinopec’s LNG terminals in
directional Ashkelon-Eilat route across Israel. this region into a major economic hub,†China. This SPA further demonstrates the
BLOOMBERG Korane said. State of Qatar’s continued commitment
He urged contractors of the project to to meeting the growing energy demand of its
Lamu port set to start source labour from the locals in the area customers globally in the form of reliable long
term LNG supplies.
to boost their income especially among
operations by June unemployed youth. Excellency Mr. Saad Sherida Al-Kaabi, the
Commenting on this occasion, His
According the team, there will be resting
Lamu port is set to begin clearing Ethiopian places after every 100 km including Hindi Minister of State for Energy Affairs, the
cargo by 15 June this year, according to multi in Lamu, Hola and Madogo in Tana River President and CEO of Qatar Petroleum,
agency team steering the project. County. said, “In a step that will further solidify
Speaking after an inter-agency meeting in Present were Kenya Ports Authority the excellent bilateral relations between the
Garissa, LAPSSET chairperson Maj Gen (Rtd) Chairman Maj (Rtd) Joseph Kibwana, Kenya People’s Republic of China and the State
Titus Ibui, said following the meeting between Railways Corporation Chairman Maj Gen of Qatar, we are delighted to enter into this
President Uhuru Kenyatta and Ethiopia (Rtd) Pastor Awita and acting Commissioner historic long term LNG SPA. We are also
Prime Minister Dr Abiy Ahmed late last for Customs and Border control Pamela proud of the fact that this agreement will be
year at official inspection tour to Lamu Port Ahago. Sinopec’s first long term LNG SPA from
Project, the government is keen to complete The LAPSSET Corridor Project embodies Qatar, and we are hopeful that it will mark
the project and start clearing Ethiopian cargo Kenya’s dream of becoming a newly the start of a long and fruitful partnership
from Lamu port. industrialized middle-income economy by with Sinopec. Our LNG relationship with
“We travelled by road from Mombasa 2030. China dates back to 2009, when we started
to Garissa to inspect the project. The progress The Project is intended to facilitate supplying LNG through a host of LNG
is good. The road between Lamu and Garsen regional integration and interconnectivity SPAs with a number of our valued Chinese
is complete,†Ibui said. within the African continent, through partners. This SPA will further supplement
“We have contractors on the ground Regional Infrastructure, Social and Economic Qatar’s contribution in meeting China’s
in other areas to make sure by June we will Development. growing energy needs and we look forward to
have our first exports to Southern parts Kenya and Ethiopia have come a long way commencing deliveries under the agreement.”
of Ethiopia, Hawassa Industrial Park and in developing the LAPSSET Corridor Project, QP
Adama Industrial Park which specialize in having various bilateral agreements.
textile, motor vehicle assembly and food KENYA NEWS

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