The World Bank private financing arm, the International Finance Corporation (IFC), will inject Ksh.2.5 billion towards the construction of an LPG import and storage terminal.
Mombasa Gas Terminal (MGT) Managing Director Eng. Julius Riungu announced the financing on Friday which anchors the completion of the project’s first phase.
“We confirm that we have received a facility from the World Bank for the Ksh2.5 billion ($23m) phase one of our bulk LPG import and storage terminal. The second phase will complete the storage capacity to 22,000 metric tons or more with an annual throughput capacity of 400,000 metric tons,” he said.
“This project will underpin Kenya’s ambitious goal for sustainable economic development. We are aiming to complete construction of Phase One and begin operations within six months.”
The terminal is expected to increase the country’s uptake of clean energy fuels and aligns with Kenya’s target of achieving universal access to modern cooking solutions by 2030.
The new terminal will include direct mooring access for large-sized LPG carriers, storage and associated infrastructure that has multiple loading points for the transfer of LPG to road and rail transport.
Further, the terminal is tipped to end infrastructure constraints in the LPG value chain and promote the accessibility and affordability of the product.
“We embarked on the Mombasa Gas Terminal project to reduce supply constraints and improve the affordability and accessibility of clean fuel usage in the country for both industry and households. We at MGT are very excited at the possibilities that we will create an opportunity for our fellow Kenyans to improve the quality of their environment and their health,” added Eng. Riungu.
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