The Nairobi Kenya pipeline plays a crucial role in the transportation of petroleum products within Kenya and to neighboring countries. This article delves into the details of the pipeline's route, its extensions, the economic implications, and the challenges it faces.
Existing Infrastructure
The Kenya-Uganda-Rwanda Petroleum Products Pipeline is a pipeline that carries refined petroleum products from the Kenyan port city of Mombasa to Nairobi, and continues to Eldoret in the Eastern Rift Valley. As of May 2014, the pipeline originates in Mombasa and travels to Nairobi, continuing to Eldoret. The pipeline extension will connect Eldoret in Kenya to Kampala in Uganda, passing through Malaba. The pipeline will extend to Kigali in Rwanda and possibly to Bujumbura, Burundi in the future.
Feasibility Studies and Contracts
The feasibility study for the Eldoret to Kampala pipeline extension was awarded to an international firm in 1997. The study was completed in 1998, and the report was submitted the following year. The study was funded by the European Investment Bank. The report indicated that building the pipeline was feasible. The feasibility study for the Kampala to Kigali extension was awarded to the East African Community in September 2011, funded with $600,000 from the African Development Bank.
The construction contract was initially awarded, in 2007, to Tamoil, a company owned by the government of Libya. That contract was voided in 2012 after the company failed to implement the project.
As of April 2014, fourteen companies have submitted bids to construct the pipeline extension from Kenya to Rwanda. Construction was expected to begin in 2014, with a 32-month construction timeframe. The total construction cost for the Eldoret-Kampala-Kigali portion of the pipeline is estimated at approximately US$5 billion.
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Lokichar-Lamu Crude Oil Pipeline
The Kenya Crude Oil Pipeline, also known as the Lokichar-Lamu Crude Oil Pipeline, is a proposed crude-oil pipeline in Kenya. The pipeline will originate in the oil-rich South Lokichar Basin, near the town of Lokichar, in northwest Kenya to end at Port Lamu, on the Indian Ocean.
In November 2016, Tullow Oil Plc indicated that it would sign an agreement with the Government of Kenya before the end of 2016, which would pave the way for the construction of the 865 kilometres (537 mi) pipeline. The joint venture will involve African Oil Limited and Maersk Oil, two other companies with oil exploration rights in northwestern Kenya. The joint venture agreement (JDA) will be followed by studies on the pipeline's technical requirements as well as its financing and ownership structure.
It was expected that the construction of this pipeline would commence in 2018 and last until 2021. In January 2018, TotalEnergies, announced its commitment to invest and become a shareholder in this pipeline, as well as in new oilfields in the Turkana exploration region.
In April 2018, the government of Kenya selected Wood Group Plc, a multinational energy services company based in Aberdeen, Scotland, to carry out the FEED engineering for the pipeline. In November 2018, Business Daily Africa reported that the government of Kenya was seeking 20 percent shareholding in the company that will own this pipeline through the Kenya Pipeline Company at an estimated cost of KSh22.6 billion (US$226 million).
The construction cost of the pipeline has been revised down to US$1.1 billion (KSh113 billion), from US$2.1 billion (US$214 billion). Besides the construction of the pipeline, other related infrastructure including roads, to link to the pipeline will have to be built, at an estimated cost of US$1.9 billion (KSh194 billion).
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Economic and Strategic Implications
Uganda’s decision not to partner with Kenya is a major blow to the region’s biggest economy and could strain relations in the bloc. Some top officials in Kenya have accused Uganda and Tanzania of locking the country out of talks.
Kenya has recoverable oil reserves of up to 750m barrels, dwarfed by Uganda’s recoverable reserves of 1.8bn-2.2bn barrels. Kenya remains by far Uganda’s biggest trading partner in the region. Uganda exported goods worth $427m last year, but imported goods worth $610m from Kenya, according to the Bank of Uganda. In the same year, Tanzania exported goods worth $79m to Uganda.
Kenyan media report that Nairobi could begin talks with South Sudan about a possible partnership on the northern route. France’s Total, a major player in Uganda’s oil sector and widely seen as having influenced the choice of route, says it has already secured the $4bn needed to fund the Hoima-Tanga route. Kenya says the International Monetary Fund and the African Development Bank have shown interest in funding its pipeline.
EAC members are partnering to develop other projects, including a refinery in Uganda and a standard gauge railway. Kenya and Tanzania will buy stakes in the refinery as part of a commitment among member states to facilitate financing of projects that benefit the bloc. Kenya has said it will take a 2.5% share in the refinery, while Tanzania will take 8%.
Uganda picks Tanzania for its oil pipeline route
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Challenges and Considerations
Security was also an issue. As Lamu is closer to Somalia on the Indian Ocean, there are fears that a pipeline could be a target for al-Shabaab militants. In Tanzania, the government owns all the land, making it easier to access.
Kampala relies on Mombasa port for almost all her imports. During the post-election violence in 2008, Uganda was cut off, paralyzing businesses. Tanga port is already operational, while Lamu would only become available in 2022.
Elly Karuhanga, chairman of the Uganda Chamber of Mines and Petroleum, said the two pipelines present massive opportunities for citizens in the three countries. “This is an opportunity for local service providers in the oil and gas sector in Kenya, Tanzania and Uganda. You only need to prepare for it,” Karuhanga said. The project is envisaged to create 15,000 jobs in Uganda and Tanzania.
Isaac Shinyekwa, a research fellow on regional integration at the Kampala-based Economic Policy Research Centre, said: “Landlocked Uganda wanted to have an alternative port to rely on in case there were issues in Kenya.”
Existing Mombasa-Nairobi Pipeline
The existing Mombasa-Nairobi Petroleum Products Pipeline was commissioned in 1978. It is a 14-inch, 450-kilometer pipeline that can carry 125,000 barrels per day. KPC is currently building a new, 20-inch pipeline to replace the existing line. The new pipeline would be able to carry 287,000 barrels per day by 2023.
| Pipeline | Status | Capacity |
|---|---|---|
| Existing Mombasa-Nairobi Pipeline | Operational | 125,000 barrels per day |
| New Mombasa-Nairobi Pipeline | Under Construction | 287,000 barrels per day (by 2023) |
| Lokichar-Lamu Crude Oil Pipeline | Proposed | N/A |
Pipeline Estate in Nairobi
Pipeline estate is located approximately 9.5km Southeast of Nairobi CBD, West of the Outer Ring road in Embakasi South constituency, Nairobi County. The estate is one of the most densely populated towns in Kenya as it falls within Embakasi which was ranked as the most densely populated area in Kenya by the Kenya National Bureau of Statistics in the last census conducted year 2019.
Due to this high population, apartments are built so close to one another to maximize the use of space and cater to the housing need of the ever-growing population. This leaves the apartments with very minimal natural light especially on the ground floor units, forcing occupants to use torches even during the day. Most of these ground-floor units also suffer network connection problems.
Neighborhoods Bordering Pipeline
Some of the estates that border Pipeline estate are Tassia, Mukuru kwa Njenga, and Kware which are mostly occupied by low-income earners, and Imara Daima which is mostly occupied by middle-income earners.
Transport to Pipeline from Nairobi
There are 3 different main routes that can get you to pipeline estate from Nairobi commercial. These routes are coded as follows, 33C, 33DC, and 33DP. When you board a bus with line number 33C it means the matatu will follow Nairobi- Cabanas and Embakasi route. While line number 33DC follows Nairobi- cabanas through Donholm and Embakasi. Line Number 33DP follows Nairobi to the pipeline estate in Embakasi Directly. The fare ranges from as low as Ksh50 to Ksh150 depending on the time of the day and the matatu company.
Places of Worship in Pipeline
Pipeline estate is home to many places of worship where residents can seek solace and connect with their spirituality. There are over 100 churches in Pipeline; but here is a list of some of the most notable ones.
- Redeemed gospel church Pipeline
- African Inland Church
- Christ Dominion Ministries
- A.I.C Pipeline
- A.I.P.C.A Pipeline
- Church of restoration
- Gospel Victory Church
- PEFA community church
- Sosian PCEA Embakasi
- Christ Covenant Ministry International
- Light embassy church pipeline
- Redeemed Gospel Church
- R.G.C Pipeline Youth Ministry
Healthcare Services in Pipeline
Access to quality healthcare services is one of the crucial pillars of a thriving community. Below is a list of different places in and within Pipeline estate where residents can receive quality healthcare services.
- Neema care dispensary PCEA Pipeline
- Dilabit pharmacy Limited
- Aga Khan Pipeline
- PCEA Pipeline clinic
- Bliss Medical Centre Pipeline
- Pipeline Health Centre
- Bizet Medical Centre
- Pipeline Medical Centre
- Pipeline Modern Hospital
- Pipeline Nursing Home
- Phimas Chemists
Education in Pipeline
Some of the schools in and around Pipeline estate include:
- Topmax college
- Bimz Beauty College
- Softpro Training College
- Paris College
- Metab Computer college
- Siloam High School
- Pipeline Mukuru Academy Primary School
- The Young Achievers Schools
- Brookhurst International School
Entertainment Joints in Pipeline
For the lovers of nightlife, dance, good food, and fun here are some of the clubs and bars you should consider visiting while in or visiting Pipeline estate.
- Club Chairmans and Lounge
- Ten Ways Club
- Kaani I Club
- Check Inn Club
- Tonnies Lounge
- Irish Lounge
- Club Amazon and Lounge
- Royal Hotel Nairobi
- Icon Lounge
- The pebble Hotel
Internet Providers in Pipeline
Some of the Internet providers with the most reliable, affordable, high speed and quality services in Pipeline are:
- Wavelink Networks
- Zuku fiber
- Sigmate Wireless
- Selin solutions
Rental Houses in Pipeline
For those seeking a place to call home in Pipeline Estate here is the rent range of different units.
- Single rooms Ksh3, 500 to Sh5, 500
- Bedsitters Ksh5, 500 to Sh9, 500
- One-bedroom Ksh11, 000 to Sh13, 000
- Two bedroom Ksh14, 500 to Ksh16, 000
Advantages of Living in Pipeline
- Proximity to Nairobi CBD: Pipeline is located close to Nairobi city therefore residents can access the CBD with ease and at an affordable cost.
- Affordable rent: One can live in a wide range of houses at relatively affordable prices compared to other areas close to Nairobi CBD.
- Good connectivity to public transport: Traveling to Nairobi or any other part of the country from Pipeline by public means is quite convenient as Pipeline is close to the Outer ring road and has good public transport connectivity.
Disadvantages of Living in Pipeline
- High population density: Pipeline is known for how densely populated it is, this can limit personal spaces, privacy and increase the risk of diseases spreading during outbreaks.
- Limited natural light: Most apartments in Pipeline are built close to each other, which limits exposure to natural light, especially on ground floor units.
- Network connectivity issues: Many apartments here experience network connectivity issues due to their close proximity leading to poor mobile network reception.
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