NAIROBI, Kenya, Sep 21 — Vivo Energy Kenya has opened a 23 million litre diesel storage tank at the company’s Mombasa terminal at Shimanzi in what is the largest diesel storage capacity in the country by one oil marketer.
The company also opened a 5 million litre petrol storage tank.
The opening of these tanks increases the company’s diesel storage to 53 million litres, and petrol storage to 29 million litres.
“Additional storage will enable Vivo Energy Kenya to support its rapidly growing retail business which has witnessed a 54 per cent growth over the last three years. It also increases flexibility to support inland markets like Uganda.” said Vivo Energy Kenya Managing Director, Polycarp Igathe.
He added that the company will additionally save money on shipping demurrage costs as fewer fuel tanker discharges will be needed.
In the last three years, Vivo Energy has increased the number of Shell service stations in Kenya by 54 per cent from 112 to 172.
In October 2015 the firm opened a 14 million litre petrol storage at the same facility.
Standard Investment Research Bank says the increase in storage capacity is not entirely a surprise as oil prices have declined; robust volume growth has been witnessed by downstream oil marketers.
“In the first half of 2016, Kenol Kobil volumes surged 23 per cent. The strategy to increase capacity however depends on the strategy adopted by the company and financial position,” the research bank commented.
Vivo Energy was formed in November 2012 with Vitol and Helios each owning a 40 per cent stake, with Shell holding the remaining 20 per cent.
Shell and Vivo Lubricants is 50 per cent owned by Shell and 50 per cent owned by Vitol and Helios. Vivo Energy operates 1600 service stations across 16 African countries.