Tuesday, 16 September 2014

East Africa’s EOI for Pipeline extension

Kenya, Uganda and Rwanda have invited EOI (Expression Of Interest) to build a 784-kilometre pipeline to transport while petroleum products. The project, to be built in in two phases will transport refined petroleum products from Kenya to both Uganda and Rwanda.
The project, part of east African regional integration plans, involves extending an existing pipeline that runs from the Kenyan port of Mombasa and the western town of Eldoret.

The extension will link that pipeline to Kampala and Kigali and also serve markets in Tanzania, Burundi, South Sudan and the Democratic Republic of Congo. Products now have to be trucked by road.

Uganda and Kenya have discovered commercial quantities of oil and plan to start production in about three years. Those finds are among a series of discoveries along Africa's eastern coast and Rift Valley which runs through Kenya and other states.

As well as exporting crude, Uganda plans to refine some oil, making products that could flow through the pipeline extension. Plans include modifying the existing pipeline, which pumps products from the coast inland, so products can flow both ways.
 Interested parties should submit the bids by Sept. 30.

 The advertisement does not have a price tag. However, previously the tag was estimated at $300 million.

The existing products pipeline is owned and operated by the state-run Kenya Pipeline Company (KPC).

The extension would be built in two phases, comprising a 350-km stretch between Eldoret and Kampala and a 434-km pipeline between the Ugandan capital to Kigali.  It also includes construction of storage terminal at Kampala, Mbarara and Kigali.

Separate to the products pipeline, Kenya, Uganda and Rwanda invited bids in June for a consultant to oversee a feasibility study and initial design for a 1,300-kilometre oil export pipeline to the Kenyan coast. 

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