Firms in cut-throat competition to build cooking gas plants

A Mombasa-based container freight station (CFS) firm has announced plans to build a multi-billion-shilling cooking gas handling facility.

Focus Container Freight Station (FCFS) said the new terminal near the port of Mombasa will be able to handle 15,000 tonnes of Liquified Petroleum Gas (LPG).

Changamwe residents and civil society groups gave the project a nod when it was subjected to the first round of public participation.

This comes after the cabinet passed a resolution to have industry players import cooking gas, heavy fuel oil and bitumen in a centralised manner.

“The Cabinet meeting also approved the procurement of LPG, heavy fuel oil, and bitumen through a centrally coordinated bulk procurement system,” said the despatch from State House, recently.

FCFS management relocated the project from the original site near the Chaani settlement area to a five-acre plot bordering the port to meet safety requirements.

The firm was also forced to reduce its LPG handling capacity from 30,000  tonnes to 15,000 tonnes. FCFS’s entry into the LPG business would ignite stiff competition following the entry of Tanzanian firm, Taifa Gas Ltd in the market.

Taifa Gas is constructing an LPG facility  with a capacity of 45,000 tonnes at the Dongo Kundu Special Economic Zone (SEZ) near the port.

Africa Gas, which is controlled by Mombasa tycoon Mohamed Jaffer, is also involved in the import of bulk LPG. The tycoon’s Proto Gas is involved in retail.

Meanwhile, the government has also announced a plan to establish an LPG common user storage facility at the defunct Kenya Petroleum Refinery Ltd land at Changamwe in Mombasa for importers.

FCFS chairman Abbas Feisal said the project was mooted in 2018 and got a license the following year but has been delayed due to safety concerns that made them change the location. “We had to relocate the project from the original site due to safety issues. We have also cut down the capacity from 30,000 tonnes to 15,000 tonnes because of those concerns,” he explained, after the public endorsement.

The project lead consultants Mr Bonface Osoro and James Mbuva said the project will now be allocated 208 metres away from the settlement areas which meets safety measures.

Osoro however said after public participation, they will file a report with the National Environment Management Authority (Nema) and seek approvals from other government agencies including Mombasa County and the National Construction Authority before the project takes off.

Osoro said instead of the minimum 75-metre location from settlements and other establishments, the proposed project was now 208 metres away, and hence safety could be adequately mitigated.

“The project is now located in a safe location far away from the settlement and nobody will be evicted because of this project,” he said.

Mbuva said the project will have six tanks which will be insulated and will have a fire-fighting system, gas detectors, and an emergency plan in place to enhance safety.

“We will ensure the project is constructed to the American standards which are recommended internationally and have a fire-fighting system in place,” he said.

Yesterday, Changamwe Deputy County Commissioner Mr Michael Yator said residents had unanimously endorsed the project after their earlier concerns had been addressed.

Human rights activists led by Mr Michael Nato had earlier stopped the project through the courts because it posed a danger to the residents.

“We had moved to court because the earlier project site was close to the people and posed danger. We had also opposed the volume that the project was going to handle. But we now fully support it after the site was relocated,” said Nato.