K-gas to Put up a Sh1.13b LPG and LNG Factory in Kwale

Petroleum product company Ken Petrogas Limited (K-gas) will be putting up a Sh1.13 billion liquefied petroleum gas (LPG) and liquefied natural gas (LNG) factory in Shimoni, Kwale County.

National Environment Management Authority (NEMA) submitted an Environmental & Social Impacts Study Report that proposed the construction of 10,000 metric tons (MT) of LPG storage tanks, 140,000 m3 of LNG storage tanks, a floating jetty, and an LPG/LNG truck marshaling yard for 65 trucks.

“The first phase of the proposed project will entail construction of an LPG receiving & storage facility that will be able to store up to 10,000 metric tonnes of LPG,”

“In the second phase an LNG handling facility of 140,000 cubic meters. The site layout for the development is as shown figure below.”

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High demand for gas in the country has led to an increase in price for the commodity over the years.

The construction of the plant will hopefully lower the current gas prices.

Only a few days ago, Tanzanian billionaire Rostam Aziz received a license to put up a cooking gas plant in Mombasa.

Under the brand name Taifa Gas, the facility will have a capacity of 30,000 tons at the Special Economic Zone in Dongo Kundu.

The cost of the entire project was estimated at Sh16.25 billion.

“Based on the Environmental & Social assessment, the proposed project is a key investment in growing the country’s clean energy infrastructure & supply,” the study submitted to NEMA added.

“Sustainability elements have been inbuilt into the design process making the project viable for licencing subject to adequate resourcing and implementation of the environmental and social management plan.”