The Hindu Business Line : BPCL in pact with Kenyan firm for LPG bottling plant

Bharat Petroleum Corporation Ltd (BPCL) has entered into an equal joint venture with the Kenya Pipeline Company Ltd for setting up an LPG bottling plant in Nairobi, Kenya.

The plant will have a capacity of 2,000 tonnes with LPG coming from Mombassa, Kenya.

Funding plans

The initial investment in the project is expected to be around $15 million and will be funded through a 70:30 debt equity ratio, the Kenyan Energy Minister, Mr Kiraitu Murungi, told reporters here on Saturday.

The Minister is in India with a delegation to discuss the details of the project with the Indian company.

He said the Kenyan energy sector has enormous investment opportunities and Indian companies and investors can take advantage of it.

With Kenya being a net importer of oil, it is looking for technical-tie ups in the energy sector.

Kenya is seeking Indian collaboration for developing storage, bottling and handling facilities for oil and gas.

The country is setting up a 500-km pipeline connecting Mombassa and Nairobi to transport petroleum products at a cost of $110 million.

It is being implemented by China Petroleum Pipeline Engineering Corporation and supervised by Petroleum India International.

Related Stories:
BPCL’s refinery at Bina set for completion by next Dec
BPCL to set up LPG bottling unit in Bangalore

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