Liwatoni LPG plant approval cancelled over safety issues

Mombasa county has cancelled approval to construct an LPG storage project after claims emerged that the site will lie on the port’s and ferry’s navigation channels. 

The Sh7.5 billion LPG project by Mansa and Mombasa Gas Terminal Limited was to be completed by November in Liwatoni. They had been cleared by the National Environmental Management Authority.

LPG, also known as propane, is highly flammable.

The plant would have  1,000-tonnes storage and 10,000 tonnes floating capacity storage, US company PetredecEast Africa said.

Yesterday, the county accused the company of omitting crucial information from its application. 

Lands executive Edward Nyale said the approval certificate on March 20. After new information and material omissions on the application for the construction permit arose, the county cancelled approval through a letter to the directors dated April 12. 

The county joins a growing list of stakeholders who have objected to the project, saying it will have grave repercussions for the environment and the community. 

Other opponents include the Kenya Ports Authority, Kenya Ferry Services, Energy Regulatory Commission, Mombasa Yacht Club and a section of Nema officials.

But in a statement dated April 18, Mansa said it followed due process on the project. Mansa said the project will benefit Kenyans by adding much-needed competition for imports while improving access to safer and cleaner fuel. 

“Opening the sector to the competition is essential to improve LPG penetration and de-risk the current supply situation," Mansa said.

Current LPG usage in Kenya is 250,000 metric tonnes per year, about half that of South Africa with similar population size.

With new infrastructure, Kenyan consumption could grow to more than 750,000MTS by 2024,” the statement read. 

The county said the statement that it and other agencies had given a clean bill of health to the project were misleading "since safety concerns and contraventions to the zoning regulations were not considered".

Some stakeholders said the site is below or near the route for the proposed Mombasa City Gate Bridge connecting Mombasa Island and Likoni. They have said it will be a big risk. 

Kenya Ferry Services MD Bakari Hamisi Gowa also wrote to Nema in May last year saying," The point where they want to put the LPG offloading plant and storage is in a most dangerous place at the mouth of Kilindini Port. It is also hazardous to the shipping route and ferry operations."

The letter read further, "It is a highly populated area, considering the flammable nature of LPG. It may not be safe for operations."

In a letter dated April 23 last year to Nema, KPA said the proposed site for the plant and jetty presents safety and security risks as they are very close to the navigation channel.

“This being the only access channel to the port, does not, therefore, match the best international maritime safety standards. The proposed land use does not align with the current KPA masterplan for dry docking and ship repair yard. KPA is the landowner for the proposed LPG site,” read the letter by harbourmaster Captain William Ruto, general manager operations. 

He also said close proximity to other marine facilities such as ship repair yards, docks and recreational areas would present an immense challenge in case of emergencies such as leakages, explosion and fire.

Attempts by the company to invite ERC’s Robert Pavel Oimeke for a groundbreaking event were rejected.

The Energy Regulation Commission, in a letter to company director Njuki Mwaniki on April 2, said Mansa is yet to obtain a construction permit. Proceeding with a groundbreaking ceremony would be in breach. 

The groundbreaking was scheduled for April 4. 

Mwaniki on Thursday told the Star they have scheduled a meeting with the county government on Tuesday.

One of Nema’s letters dated September 20 last year indicated that a site visit was done by environmental inspectors from Mombasa county. 

“The site is an open area currently as a storage yard on a large compound which has several uses, including storage of iron ore for export, oil drilling machinery and ship repair area.

"This same site had been proposed for another LPG and another EIA issued. Though this site has been licensed to have the LPG constructed, it has come to our knowledge that it is not in tandem to the KPA operations to have petroleum facilities within the port and particularly at the entry to the port,” a letter by Stephen Kitunga to the Nema director of compliance and enforcement read. 

Mombasa Yacht Club said the project is adjacent to the club and the capacity of the facility is believed to be 10,000 tons. 

“We are gravely concerned and we would have expected to be consulted about this high-risk project,” their letter read.

Currently, LPG has been dominated by African Gas and Oil Ltd. 

Mansa has partnered with US company Petredec and Kenya's Rift Gas and expects to move 12,500 tonnes of LPG monthly. 

During the launch, (Rift Gas chairman) Mwaniki said the first phase of the project will be completed at a cost of Sh850 million. 

Petredec East Africa manager Max Beckett had said they will build a storage plant of 1,000-tonne capacity with an additional 10,000 tonnes of floating storage.

(Edited by R. Wamochie)