The construction of a US$75m liquefied petroleum gas (LPG) plant has begun in Kenya’s coastal city of Mombasa under the mantle of Mansa East Africa.
The onshore storage and filing facility will be constructed in three phases, with the first phase set to be completed in November at a cost of US$8.5m.
Mansa East Africa is a partnership between US company Petredec and Kenya’s Rift Gas.
Rift Gas Chairman Lt Gen (Rtd) Njuki Mwaniki said the US$75m includes the cost of the storage and filing facility at Mombasa’s Liwatoni area and other infrastructures upstream.
Once completed, the facility will move 12,500 tonnes monthly and is expected to shake up the importation of Liquefied Petroleum Gas in Kenya which has been dominated by African Gas and Oil Ltd.
The second phase will cost US$20m and an additional US$15m will be used in the construction of infrastructure in the cities of Nairobi, Nakuru, Kisumu and parts of the western region.
“When you add the funds that will be used here in Mombasa and all the down-stream infrastructure in Kisumu, Rift Valley, Nairobi and Western, the total foreign direct investment will hit Sh7.5 billion,” Mwaniki said.
The two firms’ joint venture – Mansa East Africa Ltd will build a storage plant of 1,000 tonnes capacity with additional 10,000 tones floating storage.
“The mounded LPG terminal will be supplied by a floating storage vessel moored at Comarco’s private port,” said Mwaniki.