KPC to complete new pipeline in September

By  Jeremy Ogola

The construction of the country’s new oil pipeline is set to be completed in September this year.

Kenya Pipeline Corporation chairman John Ngumi says the company is in a better position to finance the project and that the delay in completion was mainly due to challenges with the contractor.

The new pipeline which will cost 60 billion shillings is expected to replace the existing one which was built in the 1970s.

The Kenya Pipeline Corporation signed a deal worth billions of shillings that would see the construction of a new oil pipeline by Lebanese firm Zakhem International.

The new 20-inch multi-product pipeline was to replace the existing one constructed in 1973 by the same company. However concerns over the project’s viability were raised as it became clear that the project had fallen way behind schedule.

John Ngumi says the company is in a better position to finance the project fully. KPC says discussions are at an advanced stage to determine the options for optimal use of the Kenya Petroleum Refinery Limited storage facilities in order to reduce storage costs.

Ngumi has also refuted claims that the appointment of Joe Sang as the new KPC MD was done on ethnic basis. Before his appointment Sang worked at the EABL as the head of group business performance.

  

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