KPC awards pipeline tenders

December 9, 2008

, NAIROBI, Kenya, Dec 9 – All is set for the construction of the Nairobi-Eldoret pipeline to start next year after the Kenya Pipeline Company (KPC) awarded tenders to three companies for the set up of the 325-kilometre line.

KPC Managing Director George Okungu announced on Tuesday that they had awarded tenders to China Petroleum Pipeline Bureau, Flowserve Corporation Worthingtomm SPA of Italy and Burhani Engineers of Kenya to construct and supply an assortment of equipment for the project.

“The Chinese company quoted $179.3 million and has won the tender to do the main (civil) works. The Italian company, which is a pump manufacturer whose mother company is in Netherlands, will supply of four main line pump sets and all accessories as well as two years of operating spares,” he added.

The Kenyan firm would supply voltage transformers and 3.3Kv Mv switchgears at a cost of $655, 845 while Doshi and Company would provide transformers, isolators, earth switches and surge arresters.

Mr Okungu said the construction of the 14-inch diameter pipeline would start in March and was expected to take 18 months to complete.

He explained that upon of completion of the project, the company would significantly reduce the shortage of the petroleum and related products in the Western Kenya region.

The pipeline, which is commonly referred to as Line 4, is expected to be linked up to the Nairobi-Kampala line and will have a pumping capacity of 440,000 litres per hour.

Last week, a consortium of local banks extended an Sh8.2 billion loan to the company (KPC) for the capacity enhancement of the pipeline, which is estimated to cost Sh14.8 billion.

Mr Okungu told reporters on Friday that the Syndicated Term Loan facility would go a long way in supporting the project, which would involve the construction of a parallel pipeline between the two towns.

M/S Shengli Engineering and Consulting Company in association with Runji and partners consulting engineers and planners had been engaged to design a new pipeline that would meet petroleum products’ supply requirements up to the year 2030.

The project will optimise the use of the existing stations to augment the pipeline system, and allow for the construction of new facilities in the existing stations including two pump stations, two terminals, one bifurcation station and three future pump stations.

The capacity enhancement of Line 4 comes barely four weeks after the commissioning of Line 1, which involved the construction of four pump stations along the Mombasa-Nairobi pipeline and which will see the product flow-rate capacity doubled to 880,000 litres per hour.

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