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Thursday 24 May 2012

Pipeline Supplies

Firm operates and maintains the Mombasa-Nairobi and Western Kenya systems that transport refined oil products

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Kenya Pipeline Company

Keep Wheels of Growth Turning

The Kenya Pipeline Company (KPC) was established in 1973 to construct a pipeline system to transport refined petroleum products from Mombasa to the hinterland. The Company was also charged with the responsibility of operating and maintaining the system.

 

Construction of the Mombasa — Nairobi system commenced in October 1976 and was completed and commissioned in February 1978. Following its success and the need to enhance supply of petroleum products to Western Kenya and the neighbouring countries, KPC constructed the Western Kenya Pipeline Extension (WKPE), from Nairobi - Nakuru - Eldoret and Kisumu.

 

TheWKPE was commissioned in March 1994. KPC safely and efficiently transports Motor Spirit Premium (MSP), Motor Spirit Regular (MSR), Automotive Gas Oil (AGO), Jet A-1 and Illuminating Kerosene (IK). It plays a critical role in ensuring an efficient and reliable supply of petroleum products for economic growth and development in Kenya, Uganda, Rwanda, Eastern Democratic Republic of Congo, Northern Tanzania, Burundi and Southern Sudan.

System Capacity

The Mombasa - Nairobi Section consists of a 450-kilometre 14 -inch diameter pipeline. The initial installed flow rate of the system was 440,000 litres per hour (translating to delivery of 3.85 billion litres per year). The products flow is controlled at Pump Stations (PS) at Changamwe Mombasa, (PS 1) through which products are received into the pipeline system, Maungu near Voi (PS 3), Mtito Andei (PS 5) and at Sultan Hamud (PS 7). The design and construction of the Mombasa - Nairobi pipeline system had a provision for the installation of additional pump stations at Samburu (PS 2), Manyani (PS 4), Makindu (PS 6), Konza (PS 8) to increase the flow rate.

 

There has been a marked increase in the pipeline traffic, rising from 879,776 m3 in 1978 to 4,317,439 m3 in the year 2009/10. The rise in demand has been driven by increased economic activities in the region. Consequently, the Mombasa - Nairobi Pipeline system reached its threshold in 2005/06 with a flow rate of over 424,000 litres per hour.

 

Short term measure

It then became clear that the initial installed flow rate of 440,000 litres per hour could not meet the rising demand for oil products. As a short term measure, the Government allowed road tankers to lift petroleum products from Mombasa to Nairobi, other destinations in Kenya and the neighbouring countries.

 

Studies show the demand for products from neighbouring countries will reach 4.6 billion litres by 2030 under a “business as usual” scenario. KPC estimates that demand for its petroleum products transportation services will increase by about 5 per cent annually, rising from about 4.5 billion litres in 2009/10 to 5.5 billion litres in 2013/14. The flow rate required on the Mombasa-Nairobi Pipeline to meet this through put is 522,000 litres per hour in 2009/10 rising to 640,000 litres per hour by 2013/14.

 

KPC embarked on a Capacity Enhancement Programme to construct new pump stations. Commissioning of the four new pump stations on the Mombasa – Nairobi Pipeline System is a major milestone in the enhancement of the petroleum products supply logistics in the region. The project was funded by KPC’s internally generated funds at a cost of USD 111.4 million.

 

The Capacity Enhancement Projects are critical to the achievement of Kenya’s Vision 2030 by ensuring uninterrupted supply of refined petroleum products. It is also in line with KPC’s goal to be “a globally predominant petroleum product handling and related services provider”. The enhanced capacity will reduce the number of petroleum tankers plying Kenyan roads and the associated road damage, carnage and maintenance costs.

Control Systems

Projects Completed in the Last Five Years


Information, Communication and Pipeline Control Systems Upgrades

 

SAP Systems: An ERP application which effectively automated financial transactions processing and reporting, procurement, human resource, plant maintenance among others at a cost of Kshs 191 million; Micro Wave Backbone: For Mombasa- Nairobi pipeline to provide communication links independence within the pipeline network at a cost of Kshs133.1 million;

 

Control Systems upgrade: At PS 3 (Maungu), PS 5 (Mtito Andei), and PS 7 (Sultan Hamud) to allow for enhanced local and remote operation at a cost of 930,556 Euros;

 

Tank Gauging: For Pump Stations 9 (Embakasi), 10 (Nairobi Terminal) and 12 (Moi International Airport) to improve product inventory and quality measurements on real time basis and online at a cost of USD 502,952;

 

Local Area Network (LAN): Project to enhance sharing of resources and improve communication through installation of Fibre Optic cable terminal equipment and LAN components linking 14 sites within KPC at a cost of about USD 1.6 million;

 

Scada upgrade and Pipeline Leak

Detection System: To enhance pipeline monitoring and control products within the pipeline system at a cost of USD 1.4 million;

 

VHF Network for Western Kenya Pipeline: To improve communication along the Right of Way for security purposes at a cost of KSh 37.5 million; Construction of Jet A-1 Tanks: At Eldoret and Kisumu at a cost of USD 8.6 million to improve operational flexibility and issue “ready into lane quality” Jet A-1 products at Kisumu and Eldoret depots;

 

Kenpipe Plaza: The project which stalled in 2002 was revived and completed in September, 2006; Morendat Training and Conference Centre (MTCC): Is fully utilised offering such services as training, conferencing, fitness, accommodation and recreation;

 

Eldoret Sewerage System: Was initiated in March 2005 and completed in November 2005 at a cost of KSh 17 million. It provides a sewerage system to the Eldoret Depot and neighbouring residential estates in Eldoret; Nairobi Terminal Borehole and Water

 
Supply System: The Project was undertaken to alleviate the perennial water shortage at Nairobi Terminal, occasioned by low pressure from the main water supply. The cost of the project was KSh 7.2 million;

 

Product handling

KPC Vision


“To be a globally predominant petroleum product handling and related services provider”

 

KPC Mission

“We efficiently receive, store, transport and deliver petroleum products and provide related services while adhering to international standards, exceeding customer expectations and optimizing value through continous innovation”.

 

KPC Motto

‘To do our best always’

 

Core Values


• Integrity
• Transparency
• Accountability
• Diligence
• Team spirit
• Loyalty
• Care for the Environment
• Operating Service Principles

 

Maintaining and promoting the highest standards of professionalism;

 

Promoting efficient, effective and economic use of resources;

 

Providing effective, impartial, fair and equitable services;

 

Being responsive to stakeholders’ needs;

 

Being transparent and accountable in provision of services;

 

Adhering to good corporate governance;

 

Handling our stakeholders with dignity, courtesy and utmost respect;

 

Respecting and protecting confidential information provided by our stakeholders; and,

 

Promoting dynamism and innovative practices through continuous improvements of systems and processes.