Page 14 - AfrOil Week 13 2021
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                                           The Mombasa refinery has been serving as a storage facility since 2013 (Photo: KPRL)

       Mombasa refinery could be




       revived with Eni’s biofuel plan






             KENYA       PLANS are in motion to revive the dormant   unable to finance further crude oil purchases.
                         Kenya Petroleum Refineries Ltd (KPRL) facil-  Nairobi opted to convert the site into a stor-
                         ity at Changamwe, Mombasa, with Italy’s Eni in   age facility and allowed Kenya Pipeline Co.
                         talks to convert the unit to process biofuels.  (KPC) to lease the assets for a three-year term,
                           The refinery was transformed into a storage   scheduled to expire in March 2020. KPC oper-
                         terminal in 2013 after ceasing refining opera-  ates existing fuel tanks with capacity of 320mn
                         tions and most recently acted as a storage facility   litres at the port of Mombasa.
                         for crude oil produced under the Early Oil Pilot   KPRL’s facilities comprise 45 tanks with total
                         Scheme (EOPS) at the country’s South Lokichar   capacity of 484mn litres, including 254mn litres
                         oilfields, which was halted in mid-2020.  for refined products and 233mn litres (1.47mn
                           Eni CEO Claudio Descalzi recently met with   barrels) for crude oil.
                         Kenyan President Uhuru Kenyatta to discuss   Eni converted the Venice refinery to run on
                         various green initiatives with a broad aim of   biofuels in 2014 and intends to produce bio-
                         increasing energy security in an “efficient and   diesel by 2024, and also operates the country’s
                         sustainable” manner.                 Gela bio-refinery.
                           Talks focused on a multi-year initiative to   Meanwhile, Petroleum and Mining Principal
                         collect and process waste and agricultural resi-  Secretary Andrew Kamau said that Eni began
                         dues in biofuel plants to produce fuels including   biofuel studies in December. “One of the things
                         biodiesel, bio-jet and bioethanol by using circu-  we have been working on since December is bio-
                         lar economy methods.                 fuels. Eni has been undertaking a study in Kenya
                           In a statement following the meeting, Eni   to see how we can produce biodiesel and power
                         said: “The parties discussed the development   ethanol. The company is working with the min-
                         of circular economy initiatives, including the   istries of petroleum, agriculture and the treasury
                         recovery, regeneration and re-use of agricul-  to see how we can engage farmers to grow crops
                         tural and food waste produced in the country.   that can produce fuel.”
                         The industrial transformation of waste would   Kamau added that “the first step will be how
                         enhance its contribution to power generation in   to get used cooking oil from households, hotels
                         partial replacement of fossil sources, making a   and restaurants and then refine it towards using
                         decisive contribution to the country’s decarbon-  it as biodiesel. The other thing we are looking
                         isation process,”                    at is the growing of the crops – these include
                           Central to this would be the conversion of   rapeseed, castor seeds and sugar cane. This has
                         the KPRL plant, which was the region’s only   the potential to create employment and further
                         refinery.                            develop agriculture.”
                           The closure of the 35,000 barrel per day (bpd)   During the same visit, Eni announced that it
                         unit followed the withdrawal of foreign partner   had been given the rights to drill more explora-
                         Essar Oil of India,which had deemed a promised   tory wells offshore Mombasa, signing amend-
                         upgrade and expansion project uneconomic.   ments to three production-sharing contracts
                         This followed heavily indebted KPRL being   (PSCs). ™



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