South Sudan/ Kenya to form pipeline commission
A joint commission is being formed to move plans forward on the pipeline to take South Sudan crude to Kenya’s Port Lamu for export. South Sudan plans 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 Kenya’s Energy Permanent Secretary Energy Patrick Nyoike in a Business Daily article. A similar arrangement would be adopted for the planned refinery, possibly on a 50/50 basis.
Kenya signed the oil pipeline deal, as well as a fiber optic deal, allowing South Sudan to build and own a pipeline through Kenya last week.
“We will form a joint venture on the twin projects. We have a counterproposal from Toyota Tsusho Corp. to build several multi-products to Lamu and Nakuru,” Nyoike was cited as saying.
There is also another line planned to deliver petroleum 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.
Nyoike said it was possible to complete the project in a year given that the 2,000 km line from South Sudan oil fields to Port Sudan was laid in 18 months.
The pipeline offers South Sudan an alternative route to transport oil, by-passing any need to deal with neighboring Khartoum.
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