MOMBASA, Kenya, Feb 10 – Oil marketing company, Hashi Empex has invested Sh800 million in a major oil terminal in Mombasa as part of its strategic business growth plans.
The oil terminal has a storage capacity of 20 million litres of petroleum products and the largest liquefied petroleum gas storage facility in Kenya.
Speaking during a media briefing at the oil terminal in Mombasa on Tuesday, the Chief Executive Officer Mr Ahmed Hashi, said the investment in the oil terminal, formerly owned by Agip, is part of a five-year investment strategy, designed to support the company’s regional growth plans including entry into Kenya’s retail and industrial market.
Apart from improving the 20 million-litre terminal at Changamwe, the investment will also see the establishment of a new LPG bottling plant, expected to be fully operational during the second quarter of 2009.
“We anticipate that we will handle huge consignments of oil products to service our businesses locally and the Great Lakes region and need adequate storage facilities,” said Mr Hashi, adding that the firm would also offer storage services to other petroleum industry players.
The depot is linked to Kenya Petroleum Refineries Ltd which enables Hashi Empex to get fuel products delivered faster to them, thereby enhancing the efficiency of the company’s supply chain.
“This direct connection to the refinery will enable us turn around customer orders faster and enjoy efficiencies across our business,” said Mr Hashi.
“In addition to the oil terminal investment, we plan to roll out service stations in all major urban centres in Kenya and have commenced a refurbishment programme of existing depots in Kisumu, Nairobi, Mount Kenya, and Eldoret.”
During a familiarisation visit by Energy Minister Kiraitu Murungi to get an update on the refurbishment of the new terminal, Mr Hashi said his firm fully supported ongoing government efforts to ensure adequate supply of fuel and equitable allocation of storage (ullage) at the Kipevu Oil Storage Facility.