KPC EXCELS IN ASK MOMBASA SHOW.

Earlier, the Company had emerged tops in the highly coveted category “Best interpretation of Show Theme” in Nakuru ASK Show whilst at the Kisumu ASK Show the Company bagged first place in the Category “Best Display”.


                                                   

IT’S SILVER FOR KPC QUEENS

The Kenya Pipeline ladies’ volleyball team defied all odds to emerge the second best women volleyball team in Africa after scooping the Silver medal in this year’s Africa Women Volleyball for Club Champions played in Mauritius in May. The former five time Africa champions braved off stiff completion from formidable volleyball teams from North Africa and perennial arch-rivals from Kenya, to clinch the runners up position.

The tournament held under the auspices of the Confederation of African Volleyball (CAVB) saw a total of 15 teams drawn from all over Africa, pooled in five groups of four teams each with an exception of group “A” that had the host and two other teams, showcasing their volleyball prowess during the 10 - day competition.

Tears flowed freely; emotions ran high, tempers flared and unsporting behaviour exhibited during the team’s opening match. At one point, umpires had to sternly caution one of the tacticians for showing improper behaviour. Reason? KPC had done the unexpected. The KPC team had baptism of fire in this match. The game pitted the current league leaders against the youthful and swift North African side of ASWB Bajaia of Algeria. Coming from two sets down, the KPC side; a blend of both youthful and experienced hands, turned tables on the Algerians to finally carry the last laugh by dismissing  the North Africans 3-2  ( 22-25, 23-25, 25-10, 25-10, and 18-16). Of the tournament, this match is believed to have been one of the very few five-set encounters during the preliminaries and the most hotly contested playoff.

Known for their resilience, stubbornness and determination in the field, it was not perceived even by the seasoned bookmarkers that KPC would pull the surprise victory against ASWB. All the North Africans needed was a single set to game short the encounter with a convincing 3-0 victory. This was never the case.

Buoyed by this victory, KPC made minced meat of the little known Quantum of South Africa 3-0 before dismissing Vita of DR Congo by a similar margin of 25-20, 25-15 and 25-15. In the quarter finals, the queens beat APR of Rwanda 3-0 led by former KPC and international setter Janet Wanja,  before registering a 3-1 victory over Bafia Volleyball Evolution of Cameroon in the semi finals.

It was domestic rivalry in the finals.  KPC met Kenya Prisons to which the team lost 3-1 (25-23, 14-25, 10-25 and 22-25)in a battle of wits. However, history was made in the 2010 Africa Women Volleyball for Club Champions Championship when Kenyan teams comprising - Kenya Prisons, Kenya Pipeline and Kenya Commercial Bank took the first three positions, an indication of country’s prowess in volleyball.

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It was rivalry at its best! This sums up the thriller one hour match between KPC & Kenya Prisons at the Finals of the Alpha II Cup Tournament in Nyeri. The perennial arch-rivals came face to face with each other two weeks after destroying their opponents in their respective pools. Both teams were seeded in pools A and B. KPC headed Pool A and whilst Prisons was leading Pool B.
Exhibiting an explosive combination of talent and experience, both teams sailed through to the semi finals with minimum resistance from their opponents. However, the party was not over for the two teams in the Semis as they had to contend with opposition from two of the fastest growing teams in Kenya’s ladies volleyball circles;  Kenya Commercial Bank (KCB) and Athi River Cement’s  Blue Triangle. Both were runner-ups in their pools.
KPC overcame stiff resistance from KCB; dismissing the bankers 3-2 while Kenya Prisons under the tutelage of former KPC tactician David Lung’aho walloped Blue Triangle 3-0. Then it was time for the big game; the Finals pitting the ladies’ volleyball giants KPC against Prisons. In what looked like a one sided match, Prisons thundered in the first two sets, pounding KPC to near submission. It took the ingenuity and grit of KPC tactician Sylvester Kioko to push his ladies to victory. KPC turned the tables on the correctional center officers from the third set all the way to the fifth to be crowned the Champions!
 “It was a combination of three very fundamental forces comprising of determination, hard work and God that enabled us to win” said the KPC Captain Lucy Chege.
She said with the victory, the morale of the girls has soared and it is unlikely that they will regress on their gains. 

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KPC AWARDS TENDERS FOR CONSTRUCTION OF A PARALLEL MULTI-PRODUCT PIPELINE FROM NAIROBI TO ELDORET

Kenya Pipeline Company has awarded the contracts for construction of  an 14 inch, 325 Km parallel Multi-Product Oil Pipeline from Nairobi to Eldoret to China Petroleum Pipeline Engineering Corporation (CPPE) at a cost of US $ 179,353,678.
A consortium of Shengli Engineering and Consulting Company Limited and Runji and Partners Consulting Engineers are the Project Consultants while  M/S Floweserve of Netherlands will supply the mainline pumps at a cost of Euros 4,118,480. The main contract was signed on 30th October 2009 with a contract commencement date of 16th November 2009.
Speaking during the monthly prayer meetings at the KPC Recreational Gardens, the Managing Director Mr. Selest Kilinda said work for the construction was in progress.
Mr. Kilinda said he was happy the project was finally coming to fruition, adding that:  “It has taken a while for this project to see the light of the day, but with the progression made so far, I have no doubt in my mind that the project will see the light of day”.
The MD said a Committee to spearhead the process had been formed; headed by the KPC Chief Manager Technical (CMT), with several sub-committees headed by Managers. He called on staff to accord the committees the necessary support for the success of the project.
KPC Chief Manager Technical (CMT), Eng. Elias Karumi, said the new line has an initial capacity of 311,000 liters per hour and is estimated to be completed in 18 months. The project is aligned to Vision 2030 and is designed to meet the product demand for Year 2030 when its planned three phases are completed. 
“The refined petroleum products flow-rate to Western Kenya will be increased to 531,000 liters per hour and will eliminate the incessant product shortage experienced in the region,” he added.
Currently, the region is served by an 8inch diameter petroleum pipeline from Nairobi to Burnt Forest where it narrows to 6 inch diameter to Eldoret. Another 6 inch pipeline branches at Sinendet to Kisumu. The flow-rate to Western Kenya is currently standing at  220,000 litres per hour.  

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NEW MANAGERS AT KPC

Seven new managers have been appointed at Kenya Pipeline Company Limited. The positions fell vacant following the exit of the then office holders at the beginning of the year.
The new team comprises of:
• Mr Elias Karumi – Chief Manager Technical
• Mr. Philip Kimelu – Operations Manager
• Mr. Samuel Odoyo – Finance Manager
• Mr. Bramwel Wanyalikha – Engineering Manager
• Mr. Jenaro Ithinji – Administration Manager
• Mr. Nicholas Gitobu – Procurement Manager

At the same time, Ms. Flora Okoth has been appointed to the position of Company Secretary while Mrs Mary Kiptui has been moved to Pensions.

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KPC GETS A NEW MANAGING DIRECTOR

Mr. Selest Kilinda is the new Managing Director of the Kenya Pipeline Company.
Mr. Kilinda was appointed to the position by the Government on 12th August, 2009 after being at the helm in an acting capacity for the past eight months. Before his appointment, Mr. Kilinda was the Company’s Chief Manager Finance and Strategy.

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MINISTER ABSOLVES KPC IN THE SHS. 6 BILLION ALLEGED LOSS.

Energy Minister Kiraitu Murungi has termed the allegations in a section of the press that the Kenya Pipeline Company lost a whooping Shs. 6 billion in the line I (Mombasa – Nairobi) Capacity Enhancement Project as incorrect, misleading and not factually sustainable.

The minister said contrary to the report that the State Corporation estimated the project cost at Shs. 2.5 billion at inception and spent Shs. 8.6 upon completion, the factual start up figure for the project was Shs. 6.5 billion and at the time of commissioning, the actual estimated cost stood at Shs. 8.6 billion giving a marginal variation of Shs. 2.1 billion. He said the variations were as a result of several factors such as price escalations, time extension, and currency fluctuations.

The minister said because there was no authority sought by KPC management and Board to incur the huge variation as demanded of by Section 12 of the State Corporations Act, a number of senior management of the corporation have since had their services terminated. “We have done a radical surgery at KPC from the top. We have reconstituted a new Board as well as sent home all the senior managers implicated in the anomaly”. He said the move was geared toward streamlining the services at the State Corporation.

He said the new Board was comprised of people with admirable technical and administrative ability capable of streamlining KPC for the better.

The minister said in order to ensure that the mission for which Line I Capacity Enhancement Project was being undertaken is realized; to double the white petroleum products flow-rate from Mombasa to Nairobi from the current 440,000 litres per hour to 880,000 litres per hour, corrective engineering works are being undertaken at the Kenya Oil Storage Facility (KOSF) to up the suction pressure.

A team of experts from Jomo Kenyatta University of Agriculture and Technology and other experts have also been commissioned to ascertain the workability of the corrective engineering works at KOSF whose findings he said were positive. “It is therefore very probable that once the works at KOSF are through, the white petroleum products flow-rate along Line I will double”. he said.

Acting KPC managing director Selest Kilinda said of the estimated completion cost of Shs. 8.6 billion, only Shs. 7 billion have duly been certified. Kilinda said no further payments will be made until the final PPOA and the Kenya Anti Corruption Commission (KACC) reports are out. “We shall only pay for certified claims and not every claim forwarded to us”, he added. 

The disputed press detail was attributed to the Public Procurement Oversight Authority (PPOA) draft report on line I Capacity Enhancement Project. It alleged that KPC had lost Shs. 6 billion of the tax payers’ money in irregular procurement of goods and services.
KPC and the Kenya Petroleum and Oil Workers Union (KPOWU) have signed a Collective Bargain Agreement (CBA)

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KPC UNIONISABLE STAFF RECEIVE PAY HIKE.

The Kenya Pipeline Company Limited (KPC) and the Kenya Petroleum and Oil Workers Union (KPOWU) have signed a Collective Bargain Agreement (CBA) granting the company’s unionisable staff a 12.5% salary increment. 

The 13th Collective Bargain Agreement (CBA) was signed by KPC Ag’ Managing Director Selest Kilinda and KPOWU Secretary General Kepha Olala. Under the agreement, the 12.5% pay raise will be backdated one year; with the first tranche to be paid in May 2009 and the balance in June 2009. 

Speaking during the ceremony, the Ag. Managing Director said KPC Management was committed to implementing CBA agreements. “We at KPC appreciate the Union staff as an integral part of our Human Resource and we shall endeavor to ensure that they get what is rightfully theirs without favour”, he said. 

Mr. Kilinda challenged staff to work hard to raise the status and image of the company, which is their livelihood.

On pending industrial issues, Mr. Kilinda directed that all the pending industrial matters be amicably solved so as to begin the next Financial Year on a clean slate. “These issues are best dealt with as soon as possible”, he added. 

The Ag’ MD said the management was open to any suggestions or proposals that would help better the existing industrial relations with the Union. 

KPOWU Secretary General Kepha Olala expressed the Union’s appreciation to KPC Management for expediting the CBA negotiations to a positive conclusion.  He said in a bid to equip its membership with knowledge of the operations of KPC, the union would embark on an educational tour along Lines I, II and III. 

Mr. Olala said the Union was encouraged with the feedback from its members. “We have continued to get positive feedback from our members who have expressed confidence and satisfaction with the management. It is our humble submission that this spirit be maintained for mutual benefit of both the Union and the KPC”, he added.  

Present during the ceremony were the KPC Management team and National and Regional officials from the Union.

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KPC DONATES TOWARDS FIRE VICTIMS

Kenya Pipeline Company Limited has donated Sh1 million towards the Nakumatt and Molo fire victims.
The cheque was presented by KPC Board chairman, Mr. Samuel Maluki to H.E President Mwai Kibaki during the fundraising and prayers for survivors of Sachang’wan and Nakumatt fire tragedies, in which more than 160 people were burnt to death.
More than Sh80 million was raised to aid in the treatment of those in need of reconstructive surgery. Ag. Managing Director, Selest Kilinda was also present.

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FIFTY PERCENT OF PREMIUM MOTOR SPIRIT TO BE IMPORTED

Fifty percent of Premium Motor Spirit consumed in the country and the region will be imported through Kipevu Oil Storage Facilities (KOSF), the Government has directed.

Energy Minister, Kiraitu Murungi said the directive would remain in force until challenges being experienced at the Kenya Petroleum Refineries limited (KPRL) are addressed.

“Recognising that KPRL is facing technical challenges on its facilities for providing Premium Motor Spirit, the Government has reduced its quota from 70% to 50%. The remaining 50% will be imported and transported through KPC pipeline system,” he added.

The Minister was addressing members of the press after touring KPRL and KPC’s facilities in Mombasa.

Mr. Murungi also dissolved the Ullage Committee and replaced it with a new one to be reconstituted within a week.

“Noting the challenges that have arisen related to the allocation of ullage at KOSF, the Ullage Committee has been dissolved and a new one which will be chaired by the Permanent Secretary in the Ministry of Energy will be reconstituted within a week”, he added.

Mr. Kiraitu who was accompanied by Assistant Minister Mohamed Mohamoud, Charles Keter, KPC and KPRL Board members said the spare storage capacity available at KPRL would be integrated to KOSF and would be counted as part of available ullage.

He revealed that the Ministry would initiate discussions with owners of the private owned depots in Mombasa with the objective of integrating them with KOSF and KPRL.

At the same time, Mr Murungi said all importation of products into the country would be carried out through the Open Tender System in order to efficiently use the limited infrastructure and to exploit economies of scale.

He directed ERC to immediately carry out an audit and prosecute officials of Oil Marketing Companies (OMC’s) who were not holding strategic reserves as required by law.

Mr. Murungi said each OMC is expected to have 20 days of stock as strategic reserves, adding that the Ministry was seeking funds to enable it establish strategic oil reserves to be located outside Mombasa.

On KPC, Mr Murungi said investigations were still going on and anybody implicated in the oil scandal would be brought to book. He said there would be fundamental restructuring in the company.

KPC Chairman, Mr Samuel Maluki said the Company’s mandate is to receive, transport and store petroleum products brought into the country by Oil Marketing Companies.

He said the Board was awaiting the report from investigators after which appropriate action would be taken against those implicated.

Ag. Managing Director, Mr Selest Kilinda said KPC had plenty of fuel in the system and challenged the OMC’s to clear their cargo with Kenya Revenue Authority to enable them lift products from KPC on time.

He said the Company was carrying out civil works in KOSF to boost the flow rate to 880 litres per hour.

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KPC CLARIFIES FUEL SHORTAGE SITUATION IN THE COUNTRY

The management of the Kenya Pipeline Company has attributed the current shortage of white petroleum products in the country to acute power outages and vandalism of communication equipment along the pipeline.

KPC Managing Director, Mr. George Okungu said the company has not been able to pump to its full capacity due to incessant power outages and vandalism on its fibre optic cables powering the Supervisory Control and Data Acquisition (SCADA) communication network. 

He further said that delay in shippers bringing consignment and to some extent equipment failure also contributed to inconsistent transportation of products.
Mr. Okungu said in November alone, the company suffered 53 hours of power outage, causing massive losses to the company. “We have suffered severe damages as a result of these outages. As at now, KPC has to replace two vital pump components damaged by the power fluctuation supply. This will cost the company substantial sums of money. Note that the pumps are designed in such a way that they shut down immediately there is an outage and to re-start the system takes approximately one hour each time” he added.

Besides the damage to equipment, Mr. Okungu said, the company had suffered massive revenue losses due to the down-time occasioned by the interruptions. “We have been unable to move approximately 29,572,500 litres of products upstream since 1st November, 2008 to date and therefore cumulatively suffered revenue losses totaling Shs. 45,245,926”.
 

He said the vandalism on fiber optic cables powering KPC’s SCADA network worsened the situation as it rendered monitoring of the product flow very difficult. “We have not been able to monitor the flow rate as our screen monitors have been blank. This equally slowed our processes as we have been unable to ascertain the exact point of every product. Without communication, it is extremely dangerous to try running the new pumps”, he added.

Mr. Okungu said whereas the current KPC installed capacity is 880,000 litres per hour, the current pumping rate is 540,000 litres per hour, which meets the current demand.

He discounted allegations that the newly commissioned pump stations at Konza, Makindu, Manyani and Samburu are unable to accomplish the desired flow-rate of 880,000 litres per hour. He added that this flow-rate will be applicable by 2017. “The design for Line I Capacity Enhancement Project was meant to ensure that the threshold is attained in stages by 2017”.

Mr. Okungu said the current flow-rate of between 540,000 to 600,000 litres per hour meets the current market demand and added that it would take a bit of time for the engineers to integrate the new pumps with the old system.

“Both KPC and contractor’s, China Petroleum Pipeline Engineering Corporation (CPCE) engineers have since commissioning, been working round the clock to align the new installations and induct the pumps to the network,” he said.

Mr. Okungu assured Kenyans that KPC was up to the task given to it by the government of ensuring there is sufficient supply of white petroleum products on condition that there is consistent and uninterrupted power supply.

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TENDERS AWARDED FOR NAIROBI-ELDORET PIPELINE

The China Petroleum Pipeline Bureau has been awarded the main works to construct a parallel pipeline from Nairobi to Eldoret.
The Chinese firm won the bid to set up the 14-inch 325-kilometre line at a cost of Sh13.4 billion against three other firms that had tendered for the construction works.

The new pipeline will compliment the existing line by increasing petroleum flow rate from the current 2220,000 litres per hour to 310,000 per hour. This will later be enhanced to 500,000 litres per hour by 2020 and 800,000 litres per hour in 2030.
“As you can see, we are aligning all our plans to Vision 2030. The KIPPRA report gave us an insight of petroleum demand and we will be on course if we successfully implement these projects,” Mr Okungu said.

He added that: “This is the final step and we are now looking forward to the construction. We hope the contractors will be able to deliver within the stipulated time,” said Mr. George Okungu, KPC managing director.

Mr. Okungu urged the contractors to finish their work within the designated period of 18 months. “When we will finally commission this line, we will rid our roads of heavy trucks especially those plying the Northern corridor,” he added.
Other firms that will be involved in the 18-month project include Flowserve BV- Netherlands, which will supply mainline pump sets at a cost of Sh415,566,480 (Euros 4,118,480). Burhani Engineers will supply voltage transformers and 3.3 kilovolt switch gears at a cost of Sh5.9 billion ($655,845), while Doshi and Company will provide assorted high and medium voltage and protection units at a cost of Sh33,239,889 ($420,758).

Mr Okungu said the new pipeline will boost the company’s revenue, corporation tax and the company’s net asset value. 

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KPC AND BANKS SIGN LOAN AGREEMENT

The Kenya Pipeline Company Limited and a consortium of Banks have signed a Syndicated Term Loan Facility Agreement to finance the construction of the Western Kenya Pipeline Extension (WKPE) at an estimated cost of Sh14.8 billion.
The Banks comprising CFC Stanbic Bank Ltd, Barclays Bank of Kenya Ltd, Commercial Bank of Africa Ltd, Citibank, N.A Kenya Branch and Kenya Commercial Bank will jointly lend the company Sh8.2 billion and KPC will fund the balance from internally generated resources.
CFC Stanbic Bank Ltd, Commercial Bank of Africa Ltd and Kenya Commercial Bank have each loaned KPC Sh1,687 billion while Barclays Bank of Kenya Ltd and Citibank, N.A Kenya Branch loaned the company Sh1.5 billion and Sh1,640 billion respectively.
The funds will be spent on the following:

(i) Supply and construction of a 14inch diameter 325km  long steel pipeline  from Nairobi to Eldoret
(ii) Site preparation and associated civil works
(iii) Site facilities including fencing, gates, roads, paths, drainage, water supply and equipment supports.
(iv) Construction of office/control building, mainline pump shelter.
(v) Installation of two new mainline pumps in parallel configuration in PS21 and PS24 (Nakuru) respectively.
(vi) Upgrade of a firewater main including installation of hydrant pillars, cabinets with hoses and extinguishers.
(vii) Erection of outdoor 66/33kV switchyard together with provision of on-site electrical distribution, high and low voltage switchgear, cabling, standby diesel engine generator, lighting and small power.
(viii) Installation of a control system and field instrumentation including a remote pig detection device

Signing the agreement on behalf of KPC, the Managing Director, Mr. George Okungu thanked the Bank’s for the funds saying it was a sign of confidence in KPC and that the money will go a long way to ensure the success of the project.
“Since we could not meet the entire cost of the parallel line from Nairobi to Eldoret, we decided to get into partnership with local banks. After several months of negotiations between representatives of the consortium of banks and KPC’s Board and Management, we are here today signing this agreement which has been vetted and approved by various arms of Government,” he added.
Mr. Okungu further said the KPC Board of Directors and Management embarked on the project in a bid to meet the increasing demand for petroleum products in Kenya and the East and Central Africa region.
The Managing Director who was flanked by Chief Manager ( F & S), Mr. Selest Kilinda, Company Secretary, Mrs Mary Kiptui and Chief Legal Officer, Mrs Flora Okoth, said detailed engineering project designs were ready and tenders for the project were about to be awarded.
“We envisage that the project will be completed by 30th November, 2011,” he added.
Speaking on behalf of the Consortium, Mr. John Ngumi said the provision of the loan by local banks was a testimony that these Institutions had confidence in KPC.
He further explained that the signing of this agreement should act as an eye opener to other parastatals.
“It is clear that if parastatals are well managed, they can easily access credit from local banks. I want to add that KPC borrowed this loan without support from Government. There was no guarantee or letter from the Government to influence the issuance of this loan. KPC got this loan because of its strong financial status,” he added.

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LINE 1 CAPACITY ENHANCEMENT PROJECT COMMISSIONED

Pomp and colour marked the commissioning of the Line 1 Capacity Enhancement Project at Pump Station No. 6 in Makindu which is expected to increase the flow rate from the current 440,000 litres per hour to 880,000 litres per hour.
The ceremony officiated by His Excellency Hon. Mwai Kibaki CGH, MP, President and Commander – in – Chief of the Armed Forces of the Republic of Kenya was also attended by Right Hon. Prime Minister Raila Odinga, Vice President Kalonzo Musyoka, several Cabinet Ministers, Members of Parliament and a cross section of corporate leaders.
President Kibaki congratulated Kenya Pipeline Company Limited (KPC) for completing the construction of the four Pump Stations in record time. “This project comes at an opportune time for our economy. Availability of adequate supplies of petroleum products is critical to the realisation of rapid economic and industrial growth,” the President said.
He regretted the failure by vendors to reflect the changes and welcomed the limited “controls “about to be instituted by the Energy Regulatory Commission. The pricing formulae will be implemented after the expiry of a 40-day notice to stakeholders for proposals.
President Kibaki said sufficient transportation of oil was critical to the attainment of Vision 2030 designed to catapult Kenya into a middle-income country. “With the commissioning of this project, I expect the problem of recurrent shortages of oil products, particularly in Nairobi will be addressed in the medium term”, he added.
The Head of State said the Government was committed to ensuring oil prices are in tandem with those of crude oil in the international market.
Energy Minister Kiraitu Murungi said priority will now be given to the construction of Line IV (Nairobi-Eldoret). The extension to Western Kenya is approximately 325 kilometres to Eldoret and 345 kilometres to Kisumu Depot from Nairobi Terminal respectively. The Line to Eldoret has been pivotal in serving towns such as Kisumu and landlocked Rwanda, Uganda, Burundi and the Democratic Republic of Congo.
He said the construction of the parallel line will commence immediately so as to meet demand. “The bids for the tender have been evaluated and we shall be announcing the winning bid for construction of the parallel line. Construction should start immediately as we want to beat the deadline”.
The project is expected to be complete by the end of the 2010/2011 financial year and it is envisaged that upon completion, the product flow rate to Western Kenya and neighbouring landlocked countries will double from the current 220,000 litres to 440,000 litres per hour. The current line serving the region was commissioned in 1994 and has already reached its threshold.
KPC Managing Director, Mr. George Okungu said the project adopted technology from manufacturing plants in USA, UK, India, Japan and China. “This is modern “state of the art” equipment with operating life-spans of over 30 years, proven and factory tested by our engineers,” he added.

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WESTERN KENYA STATION CONTROL SYSTEMS UPGRADE COMPLETED:

The upgrading and refurbishment of the Western - Kenya Pipeline Station Control Systems has been completed. The UK consulting firm Unitech Engineering Services completed the works in a record 8 weeks, one week ahead of the scheduled completion time.

The control systems for Pump Stations No. 27 (Eldoret) and 28 (Kisumu) were commissioned by the Kenya Pipeline Company Managing Director, Mr. George Okungu on 25th September, 2008.

The upgrade and refurbishment done at a cost of Shs 99 million has ensured easy monitoring of processes hitherto done manually. Chief Engineer (Instrumentation and Control) Bramwel Wanyalikha said product inflow, and loading at Pump Stations Numbers 27 (Eldoret) and 28 (Kisumu), have been made easy. “The system is user friendly. At a touch of a screen, the controller on duty will be able to view most of the activity at the Tank Farm without necessarily having to physically visit the tank area. This in essence saves a lot of time as there is very little downtime” he added.

Eng. Wanyalikha said the system is the latest “state of the art” technology. “As opposed to the earlier system, maintenance of the new system is easy as spares are readily available. The system is equally very versatile. One is able to perform very many functions with it and in the event of any failure by any component, the complimentary component switches on automatically and hence zero waste of time”. He said the new system is capable of powering up to 30 other stations the size of Pump Station Number 28

Speaking during the official commissioning of the stations, KPC Managing Director Mr. George Okungu said the new system would enable a faster connection to the proposed Kisumu Oil Jetty. “The use of the Oil Jetty will be much easier as there will be no need for an extra control system "

Mr. Okungu said the malleability of the system makes it one of the latest installations among many by KPC to enhance efficiency. “This system has been tested and proven the world over that its failure rate is extremely minimal. It will therefore save KPC a lot of downtime that characterized the functioning of the older system. With that, our operations will not be interrupted as has been the case therefore better delivery of services and more revenue.  Operations in Western Kenya have never been made easier.” he said.

The new system forms part of a very elaborate equipment upgrading/replacement exercise by the Instrumentation and Control (I&C) Section of the Company. Some of the recently completed I&C projects are Tank Gauging Systems for Pump Stations 9,10, and 12, SCADA System Upgrade, Fibre Optic Cable Network, Control System Upgrade for Pump Stations 3, 5 and 7 and VHF Mobile Radio Network for Western Kenya Pipeline Extension. 

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 IT’S A PLATINUM SPONSORSHIP BY KPC FOR THE ENERGY CONFERENCE

 The Kenya Pipeline Company Limited is a proud co- sponsor of the National Energy Conference (NEC) slated for 7th to 9th October, 2008 at the Kenyatta International Conference Centre, (KICC) Nairobi. KPC has contributed Shs. 5 million to facilitate the hosting of the conference.
Presenting the contribution to the Minister for Energy Kiraitu Murungi, KPC Managing Director George Okungu said KPC was keen on supporting efforts aimed at addressing challenges in the energy sector.
“Efforts to help find lasting solutions to challenges within the energy sector is a move KPC will endeavour to support and the forthcoming National Energy Conference provides such a forum. We, as an institution are happy to be part of such a noble initiative”, he said.
Energy Minister Kiraitu Murungi said the conference resolutions will be presented for cabinet approval before a seasonal paper is prepared for parliamentary legislation.
“It’s only through such an elaborate and professional approach that problems in the sector can effectively be countered so as to resuscitate the sector.” he said.  
The National Energy Conference brings together local and international experts in the energy sector to explore ways and means through which problems plaguing the sector can be addressed and adequately dealt with, whilst maximizing on the great potential that it holds.
This formidable gathering of policy makers, technical experts and stakeholders from the energy sector will exchange views on how to achieve secure, quality and adequate energy supply at cost effective and affordable prices.  Strategies will be thrashed out for the adequate provision of electricity, petroleum products and renewable energy so as to provide economic growth stimulus for realization of Kenya’s Vision 2030.
The conference secretariat has made it possible for institutions, corporates and individuals to register online via http://www.nec.go.ke/ as sponsors, participants and exhibitors. Interested parties will be able to download among others: the conference programme, Ministry of Energy key priorities and many other documents for reference.

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 KPC DONATES TO ATHLETES.

Kenya Pipeline Company Limited donated KShs. 1.4 million to be shared among the 14 medal winners at the 2008 Olympics held in Beijing China. Each of the medal winners will take home Shs. 100,000 from the donation.
The team rated best of all the Kenyan teams that have participated in the Olympics, emerged overall 14th globally but top in Africa.  The donation was presented to the President by KPC Chairman, Mr. James Kenani and Managing Director Mr. George Okungu in Mombasa.
The donation forms part of KPC’s contribution to the development of sports as well as reward its commitment to reward sports men and women who excel in their in their field.
Last year KPC donated Shs. 700,000 to the Kenyan team to the World Athletic Championships in Osaka Japan. The team emerged 2nd after United States of America. The company also rewarded the national women volleyball team with Shs.300, 000 for winning the Continental title in the Africa Cup of Nations Women Volleyball championship. Kenya beat Algeria 3-0 to win the trophy.

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LINE 4 CAPACITY ENHANCEMENT PROJECT TENDER OPENED

The line four  (Nairobi-Eldoret) capacity enhancement project tender was officially opened on the 12th August 08.  In the prescribed scope of work, the winning bidders will be involved in the construction of a 235 KM multi-product parallel oil pipeline from Nairobi to Eldoret and two new pump stations.

The three-tier international tender categorized as AB and C involves the procurement, construction, installation and commissioning of the project under tender SQ/QT/200N/07(A), while tender SU/QT/200N/07(B) involves the supply of four (4) number of mainline pumps complete with all associated components and accessories. Tender SU/QT/200N/07(C) involves the supply of assorted high voltage (HV) equipment.

The tender floated on 15th May 2008 had a cumulative response of 12 bids. Four bids were received for category A, three bids for tender B, and five bids for tender C. Representatives of all the bidding firms witnessed the opening session.

It is envisaged that upon completion of line four, the petroleum product flow rate to Western Kenya and the neighbouring landlocked countries will increase twofold from the current 220,000 litres per hour to 440,000 litres per hour.

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