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- Oct 31, 2011
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Energy PS Patrick Nyoike. Last Tuesday,
Kenya signed the oil pipeline and fibre optic
deal allowing South Sudan build and own a
pipeline through the Kenyan territory. FILE
By ZEDDY SAMBU (email the author)
Posted Monday, January 30 2012 at 21:04
Kenya and South Sudan will form a joint
commission to streamline plans for the
construction of an oil pipeline between Juba
and the port city of Lamu.
South Sudan intends to construct a pipeline
through Kenya to export its crude oil while
the government would build a refinery in
Isiolo to process the crude for local use and
export to countries like Ethiopia.
We do not have the money to build the
pipeline. South Sudan has said it will build it
but it will be jointly managed by the two
countries, said Energy PS Patrick Nyoike.
The PS said a similar arrangement would be
adopted for the planned refinery, possibly
on a 50:50 basis.
Last Tuesday, Kenya signed the oil pipeline
and fibre optic deal allowing South Sudan
build and own a pipeline through the
Kenyan territory.
We will form a joint venture on the twin
projects . We have a counterproposal from
Toyota Tsusho Corporation to build several
multi products to Lamu and Nakuru, he
said.
Another line is planned to deliver products
to the border town of Moyale to be tapped
by Ethiopia. A pipeline would also be built to
connect to the oil fields in Hoima in northern
Uganda.
Mr Nyoike said it was possible to complete
the project in a year given that the 2,000-
kilometre line from South Sudan oil fields to
Port Sudan was laid in 18 months.
The refinery, pipeline and fibre optic cable
are part of the Sh16 trillion Lamu Port and
Southern Sudan-Ethiopia Transport Corridor
project.
The project includes resort cities along the
corridor and airports linked via a modern
railway line.
The pipeline offers South Sudan an
alternative route to transport oil, which
accounts for 98 per cent of its revenues
while opening up northern Kenya for
development.
Toyota Tsusho Corporation is planning to
build a 1,400-kilometre oil pipeline under
Build Operate and Transfer before handing
over control of the facility to the two
governments after 20 years.
The pipeline would carry a projected
450,000 barrels of oil a day from Juba in
southern Sudan to Lamu on the Indian
Ocean.
The estimated cost of the pipeline is $1.5
billion dollars (Sh135 billion).
The pipeline is a gateway to move
Sudanese oil to the market including Kenya.
Both the crude oil line and the refinery are
urgent. Our plan is to deliver both at the
same time, said Mr Sylvester Kasuku,
Infrastructure specialist at Kenyas Office of
the Prime Minister.
He said Kenya would earn transit fees in line
with international best practice adding that
preliminary works on other aspects of
Lappset such as roads and port building
have started.
Kenya signed the oil pipeline and fibre optic
deal allowing South Sudan build and own a
pipeline through the Kenyan territory. FILE
By ZEDDY SAMBU (email the author)
Posted Monday, January 30 2012 at 21:04
Kenya and South Sudan will form a joint
commission to streamline plans for the
construction of an oil pipeline between Juba
and the port city of Lamu.
South Sudan intends to construct a pipeline
through Kenya to export its crude oil while
the government would build a refinery in
Isiolo to process the crude for local use and
export to countries like Ethiopia.
We do not have the money to build the
pipeline. South Sudan has said it will build it
but it will be jointly managed by the two
countries, said Energy PS Patrick Nyoike.
The PS said a similar arrangement would be
adopted for the planned refinery, possibly
on a 50:50 basis.
Last Tuesday, Kenya signed the oil pipeline
and fibre optic deal allowing South Sudan
build and own a pipeline through the
Kenyan territory.
We will form a joint venture on the twin
projects . We have a counterproposal from
Toyota Tsusho Corporation to build several
multi products to Lamu and Nakuru, he
said.
Another line is planned to deliver products
to the border town of Moyale to be tapped
by Ethiopia. A pipeline would also be built to
connect to the oil fields in Hoima in northern
Uganda.
Mr Nyoike said it was possible to complete
the project in a year given that the 2,000-
kilometre line from South Sudan oil fields to
Port Sudan was laid in 18 months.
The refinery, pipeline and fibre optic cable
are part of the Sh16 trillion Lamu Port and
Southern Sudan-Ethiopia Transport Corridor
project.
The project includes resort cities along the
corridor and airports linked via a modern
railway line.
The pipeline offers South Sudan an
alternative route to transport oil, which
accounts for 98 per cent of its revenues
while opening up northern Kenya for
development.
Toyota Tsusho Corporation is planning to
build a 1,400-kilometre oil pipeline under
Build Operate and Transfer before handing
over control of the facility to the two
governments after 20 years.
The pipeline would carry a projected
450,000 barrels of oil a day from Juba in
southern Sudan to Lamu on the Indian
Ocean.
The estimated cost of the pipeline is $1.5
billion dollars (Sh135 billion).
The pipeline is a gateway to move
Sudanese oil to the market including Kenya.
Both the crude oil line and the refinery are
urgent. Our plan is to deliver both at the
same time, said Mr Sylvester Kasuku,
Infrastructure specialist at Kenyas Office of
the Prime Minister.
He said Kenya would earn transit fees in line
with international best practice adding that
preliminary works on other aspects of
Lappset such as roads and port building
have started.