Kenya plans more LPG terminals as demand increase – Kenyan Business Feed

Demand for clean cooking methods have increased as more households take up liquefied petroleum gas (LPG) thereby sending the price of the commodity through the roof.

The government of Kenya now plans to license more liquefied petroleum gas (LPG) import terminals along the Indian Ocean coastline to boost uptake of the clean energy source, the energy regulator has said.

Daniel Kiptoo, director-general, Energy and Petroleum Regulatory Authority (EPRA) told journalists in Nairobi that the country currently relies on only one privately owned import terminal to satisfy the country’s domestic demand for cooking gas.

“We need to have more LPG import terminals to increase supply,” he said during the release of the 2021 Energy and Petroleum Statistics Report. 

Kiptoo added that Kenya is keen to have more berths for unloading LPG carriers to lower the cost of cooking gas in the market. He said that Kenya currently has no local production of natural gas and is therefore dependent on imports of LPG.

The energy regulator said eight private sector players have expressed interest in constructing import terminals for LPG. 

Kiptoo observed that more import terminals will also increase the country’s storage capacity and therefore will attract bigger LPG vessels to supply the cooking gas to the Kenyan market.

The official noted that currently, Kenya’s capita consumption of LPG stands at 7.5 kg compared to a target of 15 kg.  He noted that the lower cost of LPG will attract more households to switch from Kerosene, charcoal or firewood to clean cooking fuels.              

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