Bloomberg News

Kenya Expects LPG Consumption to Triple by End of Next Year

July 06, 2011

(Updates with importer’s comments in third paragraph.)

July 6 (Bloomberg) -- Kenya, East Africa’s biggest economy, expects consumption of liquefied petroleum gas to triple by the end of next year, said Commissioner for Petroleum Energy Martin Heya.

Annual consumption is forecast to jump to 300,000 metric tons from 100,000 tons because of the construction of a “very big import and storage facility” in Mombasa by Africa Gas & Oil Co., Heya said in an interview today in Nairobi, the capital.

Africa Gas & Oil Co., a Kenyan-based importer, is constructing a 14,000-ton storage facility that is expected to be operational by the end of this year, Managing Director Ezra Pakter said in an interview today.

The storage container will be attached to a 5,000-meter (16,405-foot), 12-inch pipeline linked to a distribution center, and then transported on trucks or by railway, Pakter said on May 20. The second stage of the company’s $125 million plan is to build 16 storage facilities with the capacity to hold 28,000 tons of gas, he said.

Per capita consumption of liquefied petroleum gas in Kenya is 2 kilograms (4.4 pounds), in line with a sub-Saharan Africa average of slightly more than 2 kilograms and below a pan- African average of 10 kilograms, World Liquefied Petroleum Gas Association Chief Executive Officer James Rockall told reporters in Nairobi today.

Countries with the highest consumption include Mexico at 60 kilograms per person, while India and China use 14 kilograms, Rockall said. Consumption in East Africa has been curbed by limited investment in supply infrastructure, he said.

“East Africa presents a tremendous opportunity for growth,” he said.

--Editors: Gordon Bell, Ana Monteiro

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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