Kenya’s plan to seize LPG logistics business from Tanzania

A truck ferrying  liquid petroleum gas.

A truck ferrying  liquid petroleum gas. There has been a snarl-up of trucks at the Kenya-Tanzania border town of Namanga following an impasse on clearing trucks. PHOTO | FILE | NMG

Kenya seeks to dominate in the supply of liquefied petroleum gas (LPG) by constructing the biggest import and storage gas facility in Mombasa and licensing more private companies to compete with Tanzania which has dominated the business for years in the region.

The announcement to construct a 25,000 tonnes storage facility by the Kenya Pipeline Company (KPC) which will connect to the Ksh42 billion new Kipevu Oil Terminal 2 (KOT) at the port of Mombasa comes few days after Kenya banned imports of gas from Tanzania through the Namanga border.