, NAIROBI, Kenya Oct 29 – Vivo Energy Kenya has opened two fuels tanks at its Mombasa depot, with a total capacity of 14 million litres of petrol, enough to fill nearly a quarter of a million average sized car fuel tanks.
The opening of the tanks increases the company’s petrol storage to 22 million litres, and ensures a ready supply needed as a result of significant retail business growth.
In the last two years Vivo Energy has increased the number of Shell service stations in Kenya by 31 percent, from 121 to 158.
Retail business growth has seen Vivo Energy return to Western Kenya, increase its footprint in the Mt Kenya region, and steadily spread to other counties.
Vivo Energy Kenya Managing Director Polycarp Igathe said the growing retail network has prompted the need to increase fuel storage so that the market can be served efficiently, and service stations kept ‘wet’ and operational.
“Additional storage will enable Vivo Energy Kenya to support its rapidly growing retail business and also increases flexibility to support inland markets like Uganda,” Igathe said.
He added that the company will additionally save money on shipping demurrage costs as fewer fuel tanker discharges will be needed.
According to a report by analyst firm IHS, Kenya has experienced sustained economic growth, and overall oil product demand in the country is estimated to increase by 3.1 percent on average through 2020.
The motor fuel demand is expected to rise by 31 percent in the period between 2014 and 2020, driven by an expanding vehicle fleet and improved road network.
Petrol consumption at Shell stations has grown from an average of 11million litres to an average of 20.8 million litres per month, an 87 percent growth since November 2012.