Mombasa cooking gas firm gets Sh4.8bn IFC loan to build terminal

The International Finance Corporation (IFC) is set to lend Mombasa Gas Terminal Limited (MGT) Sh4.8 billion to construct a liquefied petroleum gas (LPG) terminal in the port of Mombasa.

The loan is part of Sh11.2 billion funding for the firm, which is owned by Dubai-based Milio International Limited, a trader of refined fuels.

“Total project cost is $112 million (Sh11.2 billion), and IFC is considering supporting the project by providing MGT with $48 million (Sh4.8 billion) in a combination of loans for its own account and for other participating lenders,” IFC said in an investment disclosure statement.

“The aim of the project is to address issues of LPG supply and infrastructure in the Port of Mombasa to support the LPG master plan for Kenya.”

The terminal will include a private berth for unloading mid-sized LPG carriers, an onshore storage whose capacity is 22,000 metric tonnes and associated infrastructure that will have multiple landing points for transfer of LPG to transport vehicles.

The facility, which will also have a pipeline and direct mooring access for large-sized LPG carriers, is scheduled to commence operations in early 2020.

MGT has contracted Lloyd Jones Construction, an American firm to construct the terminal over an 18-month period, besides providing maintenance support for the project during the first two years of operations.

MGT will use LPG-approved tanks to transfer the gas by trucks to the Rift Valley Railways (RVR) yard in Kilindini and the Standard Gauge Railways (SGR) yard in Port Reitz, from where the commodity will be transported to Nairobi and other parts in the country.

The company will also use LPG bullet trucks accredited by third party and contracted by customers for transport of the gas.

Environmental and social impact assessment test on the project were undertaken in February.

MGT currently operates a fleet of 20 containers to import LPG into Mombasa on-board container vessels.

Source: Business Daily

Subscribe to our Newsletter

Receive regular updates from Kenya Investment Authority.

How can we help?

We are always ready to help

Contact Us