Kenya’s economy is dominated by agriculture and horticulture. The oil industry, on the other hand, is relatively new. The country aims to develop it and make it play a leading role in the medium term.
On May 10, Oil Ministry Cabinet Secretary John Munyes (pictured) announced that the land acquisition process for Kenya’s Lokichar-Lamu Pipeline project is expected to be completed in December. Six counties have been identified for this process. These are: Lamu, Meru, Isiolo, Garissa, Samburu and Turkana,
“Until we get the land, the private sector comes and the government invests money to make the duct, we will have to wait. The pipeline will pass through Lamu, Meru, Isiolo, Garissa, Samburu and Turkana counties. We hope to finalize this process by the end of the year,”said John Munyes.
The pipeline will be approximately 824 kilometres long and will connect the 10BB and 13 T oil fields in the South Lokichar Basin (north of Kenya) to the Lamu seaport in the south.
The Lokichar-Lamu pipeline is a key component of the LAPSSET (Lamu Port, South Sudan, Ethiopia Transport Corridor) corridor project currently under construction in Kililana, Lamu West. This mega-project will connect Kenya, South Sudan and Ethiopia via rail, airports, roads and pipelines.
In addition, the country should have another pipeline infrastructure, because with Tanzania, it recently signed a Memorandum of Understanding for the construction of a gas pipeline that will carry gas between the coastal city of Mombasa and Dar es Salaam in Tanzania. This conduit will cover 600 kilometres at a cost of $1 billion. It will help bring down the price of gas in Kenya and acquire energy at a lower cost and more environmentally friendly.
The Lokichar-Lamu pipeline is being developed in a partnership between the Kenyan state and a consortium of oil companies consisting of Tullow Oil (50%), Africa Oil (25%) Total (25%).
Source: Agence Ecofin
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