Kenya Electricity Generating Company (KenGen) plans to produce an additional 500 megawatts (MW) to ease the energy crisis.

KenGen Managing Director Eddy Njoroge said the investments would enable the company play its role of stabilising power supply.

"The investment will guarantee enough additional and affordable capacity to cope with the anticipated rising demand at eight per cent annually," he said.

Last week, President Kibaki commissioned the 60 MW Sondu Miriu Power project that is expected to ensure constant supply of electricity in Nyanza and Western provinces.

KenGen has already identified key sources in new geothermal, thermal and wind power generation and is in the process of seeking funds to implement the projects, some of which are ongoing.

Some of the projects include Kipevu 3 thermal with a 120 MW capacity to be commissioned in October next year and a 5 MW wind plant to be commissioned later this year.

Other projects include Olkaria II third unit with a 35 MW capacity, Eburu 3 MW and Olkaria 4 with 140 MW.

"The projects are part of our strategy of diversifying power sources to reduce dependence on hydro, which suffers when rainfall is below expectations," said Njoroge.

The power producer is awaiting approval from the Capital Markets Authority to float a Sh15 billion bond.

Electricity Prices

The investments come at a time when the country is experiencing a biting energy crisis that has seen electricity prices increase due to dependence on thermal generation.

The situation will worsen if the short rains expected in October through December are not enough and oil prices in the international market continue on an upward trend.

This is because KenGen has shut down generation at Masinga power station and might be forced to close down Kamburu, if water levels continue to drop.

One of the losing bidders in the just concluded public tender to produce emergency power is keen to develop geothermal energy near Naivasha.

Muringa Holdings, a local energy consortium, has sent an expression of interest to KenGen and the Ministry of Energy to generate about 120 megawatts next to the area where Aggreko has been given the nod to set up an emergency power station, amidst the raging power crisis.

Last week, Aggreko, a UK firm, won a public tender to inject 60 mw into the national grid by the end of October.

Mr Gursharm Brar, Muringa’s managing director, said the company owns about 100 hectares of land in a parcel of land adjacent to the plot on which Aggreko will set up its thermal plants to be powered by ordinary diesel.

Muringa has applied for a 20-year concession and is partnering with Capital Turbines Equipment.

Mr Brar said Muringa is also exploring the possibility of producing a 600 mw coal fired power station in Mombasa which will be supported by a 500 kv transmission line from the coastal city to Nairobi.

Presently, Muringa, which supplies poles to the national power distributor KPLC, says it is exploring ways of evolving into a fully-fledged energy company by exploiting the opportunities for geothermal power production.

Under the East African Power Pool that will be mandated with developing a power market in the region, Kenya seeks to tap into its rich geothermal potential while Uganda will focus on hydropower as Tanzania concentrates on gas.

Already, Muringa says it has requested to be licensed as an independent power producer (IPP) by the Energy Regulatory Commission (ERC).

Muringa’s entry into the fray will break the dominance of Aggreko whose current and planned capacity will account for one third of the total national interconnected capacity.

Currently, Aggreko sells power to the KPLC at Sh17.72 per kilowatt hour of power. Its plants are powered by ordinary diesel while the Rabai Power Plant expected in October will be sell at Sh14.27 per kilowatt hour.

Geothermal power goes for Sh4.50 while hydro is cheapest at Sh2.50 for every unit of power bought by the KPLC.
Building an emergency power station is expensive, estimated at $15 billion while an IPP requires only Sh1 billion.

Emergency power production is usually commissioned for a short period despite the high capital outlay, making the undertaking risky because it is only required in case of emergencies.

The Energy ministry is fronting for public-private initiatives for its programmes on rural electrification and geothermal steam development under the Geothermal Development Company (GDC) whose role is to accelerate geothermal power development.

It is also seeking the development of power transmission highways to allow for open access under the newly formed Kenya Electricity Transmission Company (Ketraco), granting the private sector a key role in power generation and distribution. “Private sector investments will be recovered through stable and predictable cost reflective regimes executed by the ERC.

Power buying deals that are negotiated between prospective investors and KPLC are paid for by the parastatal and by extension, the consumers.

Industry regulator - ERC however, says there is need to avoid over capacity that would be very expensive to maintain. Capacity additions should therefore closely mirror economic growth prospects.

Transmission lines
The Government –through Ketraco also hopes to build various high voltage transmission lines to strengthen the network in rural areas in order to reduce system losses.

The energy from the plants will need to be evacuated to demand centres using either existing or transmission lines to be developed by Ketraco.

Muringa Holdings pitch would be a good development in Kenya's now precarious energy sector. However, KPLCo also needs to just simply shape-up to maximise on what we now have. Making the the best of a bad situation. A couple of days ago in the Daily Nation's "Watchman", an applicant who had been granted the much hyped Stima Loan couldn't be accessed power in Bungoma despite fulfilling all requirements and a running loan facility to boot!

Muringa Holdings pitch would be a good development in Kenya's now precarious energy sector. However, KPLCo also needs to just simply shape-up to maximise on what we now have. Making the the best of a bad situation. A couple of days ago in the Daily Nation's "Watchman", an applicant who had been granted the much hyped Stima Loan couldn't be accessed power in Bungoma despite fulfilling all requirements and a running loan facility to boot!

Best thing to do is get a competitor for KPLC.

...........

http://www.constructionkenya.com/wp-content/uploads/2009/03/pipeline_construction1-300x205.jpg (http://www.constructionkenya.com/wp-content/uploads/2009/03/pipeline_construction1.jpg)The pipeline is expected reduce the high transportation costs of oil products

The construction of the much awaited oil pipeline from Eldoret to Kampala is expected to kick-off next month, the government of Uganda has announced.
Speaking during a recent media interview, Uganda energy ministry’s commissioner for petroleum, Ben Twodo said work on the terminal and pipeline is expected to start in April.
The government of Uganda has already handed over land to Tamoil East Africa Ltd - the project’s main contractor.
Twodo noted that the project was supposed to begin two years ago but it has been beset by delays.
“Work has been pending since 2007 due to a land ownership wrangle. Fortunately, the disputing sides; Mulowooza and Brothers Ltd and N Shana Company Ltd have since signed a Memorandum of Understanding with the Government that okayed the developments on the land,” said Twodo.
According to Gamal Buargoub, the Project Engineer of Tamoil, construction of the Eldoret- Kampala phase will last 18 months. The project will cost over US $73m by the time of its completion in 2010.
Upon completion of the Eldoret-Kampala section, Turmoil will proceed to construct a pipeline connecting Kigali to Kampala. The development is expected to reduce the high transportation costs of oil products from Kenya to its landlocked neighbours by road.
The construction of the pipeline will be fully funded by the Libyan government and Tamoil, the mother company of Tamoil East Africa Ltd. Tamoil East Africa Ltd won the rights to construct the pipeline in July 2006 after beating off stiff competition from China Petroleum Pipeline Engineering Corporation and MISA-Madhvani International South Africa/Shell Uganda, joint bid.
The company will manage the pipeline for the next 20 year, after which it will be handed over to the the three East African countries.

The World Bank has approved a Sh20 billion fund for the re-carpeting of the Northern Corridor that links Kenya to the landlocked countries in the Great Lakes region of East and Central Africa.

This approval increases World Bank’s support for the Northern Corridor Transport Improvement Project (NCTIP) to Sh36.75 billion, up from the initial financing of Sh16.5 billion. The Bank’s Executive Board approved the initial funding in June 2004.

The approval of the funds to be used for the improvement of the Mau Summit to Kisumu road, says Finance Minister Uhuru Kenyatta, is a clear indicator that Kenya is still considered a viable destination for donor funding.

“Despite the hard economic times its not all gloom as some parties may be implying,” The finance minister said Friday.

At the same time the Kenyan government signed funding agreements for two loans amounting to Sh4.52 billion and Sh6.87 billion from the French government. The soft loans will be used facilitate the erection of the Nairobi-Mombasa very high voltage line and improve the Mombasa water and sanitation services.

Speaking during the signing ceremony Mr Kenyatta said the existing transmission infrastructure between Mombasa and Nairobi could be overstretched in the next two years hence the need to have them replaced.

“The new connection will also facilitate the interconnections with Tanzania, Zambia and SouthAfrica,” Mr Kenyatta said.

French Ambassador to Kenya Elisabeth Barbier said during the ceremony that the French government had increased their allocation of funding to Africa to Sh14.4 billion.
http://www.constructionkenya.com/archives/world-bank-approves-sh20-billion-for-roads

East Africa states pursue joint power supply plan






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Powerlines. The review, which is expected to last 15 months, will enable Kenya to connect her national power grid with those of neighbouring states with surplus power.


East African countries are drawing up a joint plan to boost electricity supply across the region in the face of acute shortfalls sparked by poor rains.

They are aiming to create a power pool through the aggressive tapping of alternative power sources under the East African Power Master Plan (EAPP).

The proposed East African Power Master Plan (EAPP) is to be updated to include an earlier study by Kenya , Uganda and Tanzania, the original members of the East African Community (EAC).

The African Development Bank (AfDB) will finance the review to the tune of $1.2 million (Sh96 million) to update the EAC’s study of 2005.

The review, which is expected to last 15 months, will enable Kenya to connect her national power grid with those of neighbouring states with surplus power.

The plan advocates for exploitation of alternative sources to meet arising demand.

“The EAPP envisages a time frame of up to seven years to a fully-fledged regional power system, with the creation of a power pool as a central feature,” said Mr Magaga Alot, EAC’s spokesperson.

EAPP, with its secretariat in Addis Ababa, comprises Egypt, Sudan, Ethiopia, Kenya, Rwanda, Burundi and the Democratic Republic of Congo.

While Tanzania and Uganda are not members of EAPP, it is understood that they have started to participate in some of the activities. Tanzania has an excess of 350 megawatts but it cannot be distributed to other countries because there is no interconnection in the region.

A transmission line connecting southern Ethiopia and Mt Longonot will be constructed to tap 500MW of hydro power and help narrow current deficit of national power requirements.

Construction follows completion of a feasibility study by a coalition of donors to establish the viability of the project to interconnect the national grids of the two countries. The study was undertaken by German power consultants Fitchner GMBH at a cost of Euros 1.7 million (about Sh17 million).


Feasibility study
“The feasibility study for a transmission line from Ethiopia to Nairobi is ready. This is one of the interconnection projects for the Nile Basin countries,” said Ms Domina Buzingo, AfDB’s country representative in Nairobi.
The Congo River has vast hydro potential enough to meet requirements for all the East and central African economies. Kenya also intends to tap into the southern Africa Power Pool, according to Energy minister Kiraitu Murungi.

“Procurement of consultancy services is at an advanced stage as both technical and financial evaluations have been completed.

A ‘No objection’ for the final evaluation is awaited from the AfDB after which consultancy services will be awarded,” says a brief seen by the Business Daily.

While interconnection is believed to be the least cost solution for power supply, geothermal is the most reliable form of renewable energy and hydro power is the cheapest source of electric power.

The potential in geothermal alone is 7,000 MW while huge potential is in renewable, solar and wind. “Regional interconnection is the way to transform our economies and mitigate power shortage,” said infrastructure expert, Dr Eric Aligula.

Dr Aligula said high cost of fuel and over reliance on hydro power generation makes it necessary to diversify to other cost effective forms of energy as well as conservation for both domestic and industrial use.

“Geothermal is the key to affordable electricity and in the long run it will reduce the cost of electricity in the country,” said Dr Aligula of the Infrastructure and Economic Services Division at the public policy think tank - the Kenya Institute for Public Policy Research and Analysis (Kippra).

In April, the EAC member states announced they will spend about $1.8 billion on the implementation of the power master plan in the next seven years.

Of this amount, some $1.2 billion will be used for power generation while $600 million( about Sh48 billion) will be spent on power transmission projects

UNIDO commits Sh159 million to green energy project






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The project is expected to generate additional power for the country via solar energy, biomass, wind and biogas.

The United Nations Industrial Development Organisation (UNIDO) has committed Sh159 million to a green energy project called Lighting Up Kenya, which is expected to generate additional power for the country via solar energy, biomass, wind and biogas.

The investment, meant to add more than 100 megawatts of power to the national grid, is aimed at reducing the cost of doing business in Kenya, said Yoshiteru Uramoto, UNIDO deputy director general.

“The cost of production is high in Kenya especially when manufacturers use fossil fuel to run their machines. We can reduce this cost by using alternative energy,” said Mr Uramoto.

Kenya’s manufacturing sector and small businesses are facing a possible energy crisis following the shutting down of a hydro power plant last week due to inadequate water for electricity generation.

Manufacturers blame the high cost of locally produced goods on the high electricity cost.

Kenya has a total installed capacity of 1,200 megawatts with a generation mix of 56 per cent hydro, 36 per cent thermal, and eight per cent geo-thermal, but this is under threat following a prolonged drought that is stressing hydro power dams.

The country’s hydro-electricity generation capacity stands at 700 MW, but electricity generator KenGen says this has reduced by 12 per cent due to inadequate rainfall.

Prime Minister Raila Odinga named a team to fast track expansion of power generation and use of clean and renewable sources of energy such as wind, solar, biomass and biogas.

According to government plans, more than 2,000 megawatts will be added to the national grid with the use of green energy.

This is in line with the UN’s green energy projects and recommendations that countries in Africa should focus on generating power from wind and solar power.

Most of such projects are beginning to take off in Kenya’s outlying districts where communities have put up solar and wind plants that pump up about 100 megawatts of electricity for use in lighting up homes.

Next month President Kibaki is expected to launch a bio-diesel strategy that will help the country produce adequate amounts of renewable fuel by the year 2012.
The Industrialization ministry says the UNIDO funds, allocated for community electricity generation, can help bridge supply shortfalls following the shutting of the 40 megawatts Masinga Power Station after water levels went down, making the plant unable to sustain power generation.

“The money from UNIDO is particularly important during this time when we have lost a power plant due to lack of water. Our manufacturing sector could face difficulties if we don’t get alternative sources of electricity,” said Industrialisation minister Henry Kosgey.

Local manufacturers plan to cut their electricity consumption so as to conserve the available power to last longer.

The allocation from UNIDO will go to independent community power centres in Kirinyaga, Siaya, Murang’a, Kiambu, Machakos and Bungoma.

“Kenya’s electricity generation capacity, especially in rural areas, is huge. This can help the country especially following the closure of a hydro electricity plant because of lack of water,” said Mr Uramoto.

According to the United Nations, Kenya has capacity to generate more than 3,000 megawatts of electricity if the country taps into wind energy in its vast northern districts.

Potential investors
The wind energy could help inject additional power to the national grid to alleviate fears of the manufacturing sector and potential investors who have grown cold feet in putting their money in Kenya.

The Nairobi based United Nations Environmental Programme (UNEP) says the country has adequate wind to generate energy for both export and domestic use, adding that it can reduce its cost of energy by taping into the clean and efficient energy provided by its vast northern district fields.

The UN’s estimate of an existing capacity to generate 3,000 megawatts could spur renewed hope in the manufacturing sector that has complained of high electricity costs which have been caused partly by the volatile price of crude oil in the international markets.

The UN says if Kenya tapped into wind energy it would avoid the massive power rationing experienced in 2000. The power shortage was blamed on inadequate rainfall and failure to implement planned generation projects on schedule.

Compared to regional countries, Kenya has a large manufacturing sector serving both the local

market and export markets. According to the Economic Survey 2009, the sector contributed about 10 per cent of the GDP in 2008.

In May, the Africa Development Bank (ADB) injected Sh32 billion into a private consortium to develop an initial 300MW from wind energy in Turkana district — equal to around 25 per cent Kenya’s current installed energy capacity.
This follows the Government’s introduction of new legislation covering electricity generation.
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Projects to ease power shortfalls
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Technicians from the Kenya Power and Lighting Company install a new transformer. Photo/FILE
By NATION Reporter Posted Sunday, May 10 2009 at 16:51

Current power shortfalls are set to ease with the provision of a Sh5.8 billion loan to the government by the African Development Bank, for a 450 kilometre-long power transmission project between Mombasa and Nairobi.

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The project, designed to facilitate the evacuation of power generated in the Mombasa area to Nairobi and eventually into the national grid, will also help Kenya meet future demand growth for electricity.

“The project will involve the construction of a 450 kilometre 400 kV double-circuit transmission line between Rabai (Mombasa) and Isinya (60km from Nairobi),” read a statement from the financial institution.

The loan will also assist in the construction of new transmission lines from Isinya to the Embakasi substation in Nairobi and meet part of the costs for the expansion of a 19km 220 kV double-circuit line between the Rabai and Embakasi substations and the installation of shunt reactors at Rabai.

The completion of the project is expected to initially enhance the transfer capacity to about 330 MW with the possibility of an upgrading of up to 950 MW, as national demand for power increases. Meanwhile, to facilitate constituencies that are not fully covered by the national grid with access to electricity, the government also plans to construct 33 new diesel power stations.

Plans are also underway to construct several other electricity stations that are either powered by wind or solar energy, technologies that are not only renewable and cheap in the long run but also a lot cleaner for the environment. Twenty-four constituencies have already been identified as areas where the facilities will be set up, according to a draft rural electrification master plan.

The plan, obtained by the Nation on Sunday, names the constituencies as Turkana North, Central and South, Samburu East and West all of which are in the Rift Valley Province. There are also Lamu, Bura, Lamu East and Galole constituencies in Coast Province.

Others are Dujis, Mandera Central, West, East and South, Lagdera, Wajir North and West, Fafi and Ijara constituencies in North Eastern Province, North Horr, Isiolo South, Laisamis, Moyale and Saku constituencies in Eastern province.

Already, says the plan being developed by a German consulting company MVV Decon, the government has already tendered for eight of these power stations. “The generation mix of decentralised rural schemes will in the next five years supply an additional peak demand of 41 megawatts including electricity generated by solar and wind energies,” it says.

The government also plans to extend several power grids in the remaining 177 constituencies, a process likely to cost Sh120 million over the next five years. It is expected that when this is implemented, some 902,000 Kenyans in the rural areas will have access to electricity.

Overall, the master plan envisages that within the next 10 years, the government will provide electricity access to about one million households at a cost of Sh112 billion. This year alone, the government expects to connect some 65,000 new customers to the national grid, an investment that requires Sh16 billion.

Energy PS Mr Patrick Nyoike said recently that the move to scale up Kenyan’s access to electricity came out of the realisation that many parts of the country were not connected to the grid. It is estimated that only 10 per cent of Kenya’s approximated 38 million people have connection to electricity, while accessibility stands at about 63 per cent.

“These levels of access to electricity are not encouraging considering that average rural connectivity levels for the developing world is about 40 per cent,” said the PS. Mr Nyoike added that some African countries have higher connectivity levels, citing South Africa, Morocco, Tunisia and Ghana. He said that with the establishment of the Rural Electrification Authority, the target for rural electrification

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this thread is only dedicated oil exploration project in kenya

The Government has stepped up oil exploration though no deposits have yet been discovered.


The National Oil Corporation MD Mwendia Nyaga (centre), the Standard Group team led by MD Paul Wanyaga (second right) and Assistant Commercial Lawrence Njiru (right) when they paid a courtesy call on the Corporation’s head offices in Nairobi. Partly hidden is Jane Njoroge (second left) and Corporate Affairs Manager Chris Karanja. Photo: Jonah Onyango/Standard

National Oil Corporation of Kenya (NOCK) Managing Director Mwendia Nyaga, however, said chances of finding oil were high and more explorers had shown interest.

The State-owned corporation that distributes oil products also co-ordinates exploration.

"There are high prospects as we have received positive indicators from the wells drilled," said Mr Nyaga, when he received Standard Group Managing Director Paul Wanyagah in his office on Thursday.

"These indicators have attracted more explorers and in case of discovery, the process will be accelerated."

So far, 31 wells have been drilled and more than Sh1 billion spent in collecting data that would help in further exploration.

Exploration is concentrated in four regions that include the Coast, the basin between Lamu and Lake Turkana, Rift Valley block that extend from Kerio Valley to Magadi and the Mandera basin that covers northern Kenya.

Nyaga said the basins have been sub-dived into 36 exploration blocks where more than ten multinational companies have been licenced to explore seven.

Wanyagah praised the Government for creating the organisation and charging it with the responsibility of co-ordinating exploration. He said with the high oil prices in the global market, discovery of commercial oil deposits would be a boost to the economy.

"We urge you to keep updating Kenyans on exploration efforts especially now that oil prices have been escalating," said Wanyagah.

On oil prices, Nyaga said he shared in frustrations expressed by motorists who have not benefited from the prevailing low crude oil prices in the global market.
desert burner is online now Report Post Edit/Delete Message

Indian petroleum giant, Essar Group, has concluded its bid to acquire a 50 per cent stake in Kenya Petroleum Refineries Ltd (KPRL).

Essar Group made the announcement on Friday after a year of negotiations to buy out three oil majors that owned the facility with the Government.

Following conclusion of the deal, Essar and the Government will invest $400 million (Sh22 billion) in the next three years to upgrade the refinery’s production capacity to one million barrels a day.

The refinery has a capacity of about 72,000 barrels a day.

"The conclusion of the deal fits our strategy in expanding to Africa’s petroleum industry and positions our company as a key player in this region which has immense oil reserves," said Mr Prashant Ruia, the promoter-director of Essar Group.

"Our model in India is to be a refinery with retail and market distribution. We have 1,500 gas stations in India, which we operate on a franchise basis. we will see how we can bring that model to Kenya," he said.

Essar paid $10 million (Sh760 million) to acquire part of KPRL after a competitive bid steered by Wood McKenzie Consultants of the UK, edging out Oil Libya and Reliance Industries.

Pre-emptive rights

The company also paid an additional $2 million to the Government to waive its pre-emptive rights. The rights allow an existing shareholder to purchase any additional shares if a chance arose before any other third parties are considered.

Sourcing for an investor began last year after studies showed the 67-year-old refinery needed to be modernised to meet growing demand for petroleum products in the region.

Previous shareholders including Chevron, Shell and BP turned down the offer to increase their shareholding and raise money needed for the exercise saying the planned upgrade had failed to meet their investment criteria. "We are happy to conclude the deal and will immediately embark on upgrading the facility," said Prime Minister Raila Odinga.

The Prime Minister’s office coordinated the process of sourcing for a new investor under the PM’s Round Table initiative. Once upgraded, the refinery will also increase current production of liquefied petroleum gas, from the 30,000 tonnes to 120,000 tonnes a year.

The deal comes barely weeks after Uganda reported massive oil reserves find approximated at over 500 million barrels.

KTDA to set up energy arm






http://www.nation.co.ke/image/view/-/632806/highRes/91830/-/maxw/600/-/egcngw/-/KTDA.jpg KTDA managing director, Lerionka Tiampati. Photo/FILE
By NATION ReporterPosted Friday, July 31 2009 at 13:08

The Kenya Tea Development Agency (KTDA) will create an energy subsidiary to aid its power generation initiatives.

The move is aimed at reducing the money spend by factory companies on energy and increase tea farmers’ incomes.

The tea agency’s managing director Lerionka Tiampati said the subsidiary will consolidate KTDA’s ongoing initiatives and reduce the cost of energy investments by getting the 60 factory companies under its aegis to work together.

He made the announcement during a workshop organised by the Ministry of Energy where feasibility reports for 12 new sites for potential small hydro projects were presented.

The studies were carried out mainly in tea growing areas and were funded by the government to the tune of Sh40 million.

“The mandate of the new company will be to explore opportunities in the energy sector including hydro, wind and solar with a view to reducing production costs at the factory level for the benefit of the farmer,” said Mr Tiampati.

Last month, KTDA signed a power purchase agreement with Kenya Power and Lighting Company to supply surplus electricity from its Imenti mini-hydro project.

The project was constructed by small scale tea farmers of Imenti Tea Factory and has a capacity of 1MW.

Sell surplus

A second project located along Gura River in Nyeri District is at the initial stages of implementation and will supply power to four factories when complete. Any surplus power will be sold to the national grid.

According to Mr Daniel Theuri, the team leader at Que Energy Limited, which conducted the feasibility studies, 10 of the 12 sites are commercially viable with an estimated pay back period of between two and five years.

The 10 sites have a combined capacity of 22 MW.



Small hydros are constructed under a process known as run of river and do not affect local communities as power is generated from the natural flow of the river.

Move fast

Energy minister Kiraitu Murungi urged the agency and its factory companies to move fast and implement the projects at the viable sites.

He said affordable financing could be accessed by KTDA once a proposal for implementation is approved.

Mr Murungi said success of the small hydros depended on the protection of water catchment areas, which were in danger of total destruction.

He announced that his ministry had set aside Sh100 million for tree planting countrywide to secure the country’s key energy sources.

The Ministry of Energy initiative comes at a time when Kenya is facing an unprecedented energy and water crisis caused by wanton forest destruction in water towers.

After a threat from prevailing global economic recession, oil exploration efforts are looking up once again.
Africa Oil Corporation— a Canadian oil firm— has re-jigged the efforts through a new partnership to explore black gold in the arid northern Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.eastandard.net/mag/InsidePage.php?id=1144017012&cid=457&#) region.
Africa Oil Corporation signed the agreement with the Dubai-based oil exploration firm, Black Marlin Energy Ltd (BMEL) to seek for oil and gas resources in Anza basin, thought to hold part of the oil wealth extending to South Sudan.
http://www.eastandard.net/images/tuesday/fj160609_08.jpgAn engineer at an oil exploration site. The renewed oil search is a major boost to Kenya’s oil exploration initiative. [PHOTO: FILE]
They would prospect oil in Block 10A in the Anza Basin of northern Kenya.
The agreement also extends to exploration of potential oil fields in Ethiopia and lead towards drilling if commercial quantities of oil are found in northern Kenya and in Ethiopia’s Ogaden Basin in southern Ethiopia. In Kenya, Africa Oil will transfer a 20 per cent license interest to Black Marlin Energy subsidiary, East African Exploration Ltd (EAXL) in the Production Sharing Contract.
Black Marlin Energy Chief Executive Jeff Hume announced last week, the firm plans to invest Sh770 million over the next three years in the exercise. He said Africa Oil brings strong technical experience to the Joint Venture while Black Marlin’s business model offers high quality seismic services.
gas potential
"I am very pleased to be able to announce this strategic and exciting transaction and look forward to working very closely with Africa Oil Corp," he said last week.
Hume believes there is good oil and gas potential in the Anza Graben in Kenya. "We believe that oil and gas will be discovered somewhere in Kenya in the next two to three years," he said.
Hume said in the prospective Block 10A Production Sharing Contract, Africa Oil has executed a seismic contract with BMEL’s Upstream Petroleum Services Ltd, a geosciences services unit.
EAX is an operator in Block 1 in Kenya with a 50 per cent interest and is 40 per cent partner in Block L17/L18 near Mombasa.
Kenya represents EAX and Black Marlin’s largest exploration commitment worldwide. Africa Oil holds a 100 per cent interest in Block 10A and has farmed into Block 9 with a 30 per cent interest. Africa Oil Corp farm-in transaction with BMEL is however subject to government approval. The oil exploration agreement is a boost to the country’s oil exploration initiative as it comes against a continued global economic downturnhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.eastandard.net/mag/InsidePage.php?id=1144017012&cid=457&#) that has restricted the operations of many oil-prospecting companies.
facilitate growth
Opening the fourth East African Petroleum Conference in Mombasa recently, Energy Minister Kiraitu Murungi said the economic crisis was a serious threat to the country's pursuit for oil deposits as most companies involved in the search were caught up in the situation.
In his Budget speech Finance Minister Uhuru Kenyatta said the Government has introduced new measures to reduce the cost and encourage private sector players to conduct oil exploration activities.
He said plans are in place to grant import duty exemption on equipment and inputs excluding motor vehicles imported by a licensed company for direct and exclusive use in oil, gas or geothermal exploration and development.
Uhuru said these would help fast-track ongoing exploration initiatives and complement Government’s efforts towards addressing the aspirations of the people and facilitate growth of the economy.
The measures in the 2009 Budget anchored on the Theme: "Overcoming Today’s Challenges for a Better Kenya Tomorrow" comes when local oil exploration efforts appears to be looking up again after encountering serious threat from the global economic recession.
Kiraitu said most companies engaged in oil exploration in the country had either put on hold or scaled down operations due to the capital intensity of the exploration process.
"I wish to confirm that Kenya 's exploration efforts have been seriously affected by the economic crisis," he said.

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Essar appoints CEO to oversee refinery upgrade





http://www.businessdailyafrica.com/image/view/-/650856/highRes/98560/-/maxw/600/-/y0a73pz/-/Mombasa-Refinery.jpg Engineers repair a section of the Kenya Petroleum Refineries Limited. The refinery is meant for upgrade at a cost of $400 million (about Sh32 billion) to enable it produce more white oil products such as cooking gas, jet fuel and petrol as opposed to its current state where it does more fuel oil, making it less efficient and profitable.
By Zeddy Ssambu (email the author (http://javascript%3cb%3e%3c/b%3E:void%280%29;))

Posted Tuesday, September 1 2009 at 00:00

Essar Oil and Gas has appointed a new chief executive for the Kenya Petroleum Oil Refineries Limited (KPRL), putting fresh urgency to the delayed upgrade of Kenya’s sole refinery.

Business Daily has established that the Indian- based oil giant has tapped Mr Raj Varma from its headquarters in Mumbai to help in the refinery’s turnaround, just a month after Essar completed the purchase of a 50 per cent stake in KPRL from three oil majors: Shell Petroleum Company, Beyond petroleum and Chevron Global Energy.

He takes over from Mr John Mruttu who becomes the chief operating officer after a new shareholder agreement that gave the Indian firm the position of CEO and chief finance officer.

The change in leadership is the clearest signal that Essar is set to stamp its authority in the management of the refinery, which was under the control of the Kenyan government that holds the remaining stake, and executives at the firm reckon it would give urgency to the upgrade plan.

The refinery is meant for upgrade at a cost of $400 million (about Sh32 billion) to enable it produce more white oil products such as cooking gas, jet fuel and petrol as opposed to its current state where it does more fuel oil, making it less efficient and profitable.

Already, the government has so far set aside Sh1.6 billion to help fund the upgrade with the balance expected to come from Essar Oil and commercial lenders.

“The upgrade project is now moving, with a review of the (dated) design premises.

Priorities will crystallise as Essar becomes more familiar,” said a senior executive at the firm who requested not to be named.

Last Friday, the board, at their first meeting since the entry of Essar, approved a number of projects linked to the upgrade.

Besides the upgrade, the board approved the construction of a 24 megawatt power plant to cut its reliance on Kenya Power and Lighting Company, a gas loading facility and injection of Sh160 million in fresh equity for the implementation of smaller projects.

It also approved the hiring of consultants to undertake studies and recommend the best configuration of the refinery and review both costs and viability of the project.

Mr Varma has vast experience in the Indian energy market that spans over 50 years and his posting would help the Indian giant increase its presence in the regional oil market.

On July 30, Essar announced that it would enter Kenya’s downstream petroleum market by acquiring assets belonging to the troubled Triton Petroleum Company that was placed under receivership last December.

Essar Energy is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon supply chain — from exploration & production to oil retail.

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Toyota eyes investment in power generation
Toyota Tusho Corporation, which fully owns Toyota East Africa, has announced plans to invest millions of shillings in geothermal and wind power generating plants.

Toyota East Africa chairman Dennis Awori on Friday said that although the company is known for manufacturing motor vehicles, it plans the ratio of its automotive business to non-automotive to be 50:50 by 2015.

He told reporters in Nairobi that the power shortage facing the country called for both the government and private organisations to offer solutions. “We expect to be making substantial investment within a few months,” Mr Awori said.

“As for the amount, I will not be able to disclosure but given that we are talking about Toyota Tusho Corporation, a $67 billion turnover company, this will be a sizeable investment.”

The company plans to invest in geothermal, wind power and biofuel production. It will also invest in coffee and nuts production, Mr Awori said.

Toyota said the 2009 Total Motorshow will be held from August 28 and 30 at Jockey Club, Nairobi. “This offers visitors an opportunity to see and compare makes and models, providers and industry players at one place,” said Toyota East Africa managing director Tomonori Umehara.
desert burner is online now Report Post Edit/Delete Message

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That's a chicken Pipeline. too small.

Oil drillers Raytec and Lion in merger

http://www.theeastafrican.co.ke/image/view/-/653820/highRes/99649/-/maxw/600/-/i6k9nz/-/india-crude-oil.jpg Oil workers at a storage facility for crude oil at Mangala oil field at Barmer in the desert Indian state of Rajasthan. Drilling in CNOOC’s Block No. 9 in Kenya is expected to start soon. Picture: Reuters

Posted Monday, September 7 2009 at 00:00

Publicly-listed Cnadian oil exploration company Raytec Metals Corporation has announced that it has entered into negotiations to merge with Lion Petroleum Inc — the entity that has been allocated the rights by the Kenya government to prospect oil in two blocks in Mandera area of North Eastern Province.

A recent entrant into the oil exploration field in Kenya, Lion Petroleum has production sharing contracts with the government of Kenya on blocks 1 and 2B.

The news of the intended merger is the latest in the fast-changing oil exploration landcape in Kenya in response to an increasingly liberalised licensing exploration regime.

Until recently, Kenyan authorities were reluctant to approve mergers and farm-ins between oil exploration companies.

But it would apear that authorities now realise that as along as the country constinues to be regarded as a high-risk exploration frontier, the licensing regime must allow mergers and acquisitions if only to sustain the continued flow of foreign venture capital into the country’s oil exploration sector.

Block 1 — which is the subject of the new merger deal between Raytec Metals and Lion Petroleum — covers an area of approximately 31,781 square kilometres and is situated west of Mandera Town, extending into Somalia and Ethiopia.

The merger will also affect ownership of Block 2B which covers an area of approximately 7,807 square kilometres and borders block 9 where Chinese exploration company CNOOC will shortly commence the drilling of Kenya’s first on-shore oil wells in close to 20 years.

Last week, the chief executive of Lion Petroleum, Mike Devji, said the two companies had decided to unite to create a bigger and more dynamic oil exploration company.

Last year, Lion entered into a farm-in agreement with East African Exploration Ltd, a subsidiary of Black Marlin Energy Ltd of Dubai, that has rights over Bloc 1.

Under the deal, Black Merlin will do seismic work on some parts of block 1 in exchange for shareholding.

In a statement last week, Raytec’s president, Brian Thurston, described the relationship with Lion Petroleum as strategic, adding that the company was focused on the company becoming a significant player in the developing oil and gas industry in East and Central Africa.

Only recently, Raytec announced a farm-in agreement with Africa Oil Corp, a member of the Lundin Group.
According to the agreement, Africa Oil will transfer to Raytec a 10 per cent interest in the Block 9 , a 25 per cent license interest in the Block 10A and a 20 per cent interest in Block 10BB.

In July, Africa Oil Corp acquired Turkana Energy Inc which had a production sharing contract on Block 10BB.

The block is approximately 13,000 square kilometres in North Rift.

The block occupies within the tertiary rift trend of East Africa, which has recently yielded major oil discoveries by operators such as Heritage Oil Corp and Tullow Oil plc, both active in the Lake Albert region of Uganda.

In the sate of Puntland Somalia, Africa Oil will transfer a 15 per cent licence interest to Raytec in the Nogal and Dharoor Petroleum Production Sharing Agreements.

In May, 2009, Dubai based Black Marlin Energy Limited announced a farm-in agreement between its subsidiary East African Exploration Limited and Africa Oil Corporation on where Africa Oil will transfer a 20 percent license interest in the Block 10A Production Sharing Contract, located in the Anza Basin of northern Kenya.

In June, Lundin Kenya BV, a wholly owned subsidiary of Lundin Petroleum AB, anncouned that it had executed an agreement with CNOOC Africa to acquire a 30 percent particpating interest in Block 9.

In December, Taiwan’s government-owned refiner CPC Corp and China’s CNOOC signed a letter of intent to expand exploration and production in which it agreed to sell to CPC a 30 per cent stake in its No. 9 exploration block in Kenya.

Drilling in CNOOC’s Block No. 9 in Kenya will take place in August or September, CPC president Chu Shao-hua said.

The Kenya Petroleum Refineries Ltd (KPRL) will set up its own power generation plant to guarantee reliable power supplies and cut electricity costs.
KPRL has been experiencing power outages that impacted negatively on production processes.
It attributed the hitch to irregular power supply from the Kenya Power and Lighting Company (KPLC).The firm blamed the recent fuel shortage across to irregular power supplies that affected production of premium petrol.
Though production has normalised, KPRL said prevailing conditions on the power sector demanded that it reduces its reliance on supply from KPLC.
"The power generation project is a high priority project due to the prevailing constraints in power supply.
The plan is to have it up and running in the least possible time, which will include the tendering, construction and commissioning of the project," said Martin Wahome KPRL Communications Manager. "Over the last 12 months, supply of power to KPRL has been irregular and this has adversely affected vital equipment.
National Grid
The dedicated power line to KPRL from KPLC has also not been very efficient.
To mitigate this, KPRL is looking at other options, including producing its own power," he explained. The projected output of the plant is 24 MW, while KPRL’s peak demand is about 8MW. It intends to sell the balance to KPLC on a Power Purchase Agreement (PPA) basis.
The Mombasa-based refinery joins a growing list of companies that have plans or are generating power for their consumption and selling excess capacity to KPLC.
The firms include Mumias Sugar Company, Athi River Miming, the East African Portland Cement and Kenya Tea Development Agency.
The plant put up by Mumias Sugar has a capacity of 38 MW and offloads 26 MW to the national grid.
ARM has said it will put up a 30 MW coal fired plant at the Coast region and expects to be up and running by end of 2011.
KTDA announced in July it would create an energy subsidiary to spearhead its energy generation initiatives among its factories.
Income streams
The move by the agency is expected to reduce money spent by tea factories on energy, and broaden their income streams.
The agency has also signed PPA with KPLC to supply surplus power from its Imenti mini-hydro project.
The project was constructed by small-scale tea and has a capacity of 1MW.
There are, however, ten other factories that have potential to generate a combined capacity of 24MW.

Government sugar firms are rushing to roll out electricity projects to take advantage of an array of tax incentives offered by Treasury to encourage investment in energy and improve their bottomlines.

The move comes ahead of privatisation later this month and the entry of Common Market for Eastern and Southern Africa (Comesa) duty free sugar two years later.

In the footsteps of Mumias Sugar Company, which is already supplying 26 megawatts to the national grid, at least two State-owned sugar firms —Sony and Chemelil —are finalising details of the cogeneration projects.

Sony Sugar has intensified its search for strategic investors to finance its cogeneration unit while Chemelil which entered into a cogeneration partnership with KenGen a while ago has formed a committee working out the technical and financial details of setting up a plant in Western Kenya.

Last week, both the KenGen and Chemelil spokespeople told the Business Daily the outcome of the collaborative committee is what is holding the two firms’ resolve to start the power generation project.

“Cogeneration is one of the value addition projects that our consultants have identified as reliable areas that will improve the revenue streams of our sugar industry in the era of duty-free Comesa sugar imports,” said Mr Solomon Kitungu, the CEO of the Privatisation Commission of Kenya.

The government has already contracted a consortium of privatisation advisors—led by consultancy firm Ernst and Young to provide technical advice on how heavily indebted public sugar firms can be restructured to make them competitive in a liberalised market and attract private capital.

Five State corporations— Miwani, Muhoroni, Sony, Chemelil and Nzoia —have been identified for privatisation after consistently failing to meet their current liabilities like paying for suppliers and cane deliveries.

Together, public sugar firms are groaning under a heavy debt of over Sh47 billion.

According to Mr Kitungu, the first public hearing of the privatisation process will be held in Kisumu on September 18 and stakeholders of the five targeted firms have been invited to make their contribution on the best way that the corporations can be restructured to make them profitable.

In the restructuring process, Mumias Sugar Company which invested Sh6.5 billion in a cogeneration is seen as a model in the industry that is bracing for the removal of the Comesa safeguards by 2012.

Renewable energy
Apart from direct revenue earned from selling the generated power to the national grid, the other benefit is the kind of dividends that await sugar firms that venture in renewable energy production came last week when Mumias released its 2008/2009 financial year.
The results indicated that the government also doled out an equivalent of 150 per cent of parastatal’s capital investment deduction in the form of tax credit, a concession that pushed up its after-tax profit by 33 per cent from Sh1.2 billion to Sh1.6 billion.

Data from the ministry indicate that six of the country’s 13 sugar firms which have a cogeneration capacity of up to 300 megawatts require a total of $4.45 billion to put up the plants — an investment that the government hopes to attract from its partnership with the private sector.

“The ongoing restructuring in the public sugar sector will private investors to take part in tapping the huge cogeneration opportunities available in the country in joint ventures with the public sugar companies,” said Mr Raphael Khazenzi, a senior energy ministry official in charge of the renewable energy development.

In an earlier interview, Agriculture minister William Ruto hinted at the government’s plan to reduce the number of sugar companies to six, each with a cogeneration capacity.

Ten years tax break, investment deduction and zero-rating of the imports of specialised materials used in the construction of the cogeneration plants are among an array of the tax incentives that the government has been dangling to entice the private sector to invest in the renewable energy projects.

“We are creating enabling environment to encourage projects in alternative sources of energy such as wind, solar, geothermal and use of biomass to generate electricity which represent a shift from over reliance on hydro power,” Mr Joseph Kinyua, the Treasury PS said in a statement read on his behalf at the Kenya Investment Authority’s Ecotape Preparatory meeting held in Nairobi last week.

Other renewable energy projects being pursued by the government includes wind power, solar, geothermal and power alcohol.

Mr Alexander Varghese, UNIDO representative for Kenya and Eritrea said renewable energy development will also provide the easiest way to support value addition in rural areas as envisaged in both the private sector development strategy and the vision 2030.

“Apart from cow dung, there are so many wastes in this country that can be used to generate ample amount of energy in the rural areas,” he said.

Mr Khazenzi said the government is already funding a research being undertaken by the Jomo Kenyatta University of Agriculture and Technology which seeks to study the possible use of sewage in producing biogas

Sanghi Group of India will put up a power plant to support its planned cement factory in Pokot district.

The facility, set to produce up to 22.5 megawatts of electricity, will be used when its Cemtech factory commences production by December of 2011.

The $80 million (Sh6 billion) cement plant will produce up to 1.2 million tonnes of the building material per annum.

Beat high cost

Sanghi power plant comes at a time when most cement companies in Kenya are putting up own electricity generation facilities to beat the high cost of energy in the country. Cement firms use up to 45 per cent of their running costs on power.

The Indian group, the world’s largest single-stream cement plant producing over 20 million tonnes of cement annually, owns an 80 per cent share of Cemtech with the balance held by local investors.

The Pokot project has permits and licences by the government including, the Environmental Impact Assessment license by the National Environmental Management Authority.

Local leaders have invited President Kibaki and Prime Minister Raila Odinga to officiate at its ground-breaking ceremony.

Mining rights

On Tuesday, director Rajesh Rawal said: “The company has successfully completed the in-depth geological evaluation exercise, which took nine months, at its limestone quarries for which it has been granted exclusive mining rights for 99 years by the County Council of Pokot.”

He revealed that Cemtech had already received hundreds of applications for jobs adding that construction of the factory will commence soon after the ground-breaking ceremony.

Industrialisation PS John Lonyangapuo confirmed that plans are underway to upgrade road network and a railway line to facilitate transport of cement countrywide and to neighbouring countries.

A four-year interconnection of electricity grids in five Nile Equatorial Lakes countries including Kenya, has been launched.

The Sh152 million project will be implemented by the Nile Basin Initiative (NBI), Nile Equatorial Lakes Subsidiary Action programme (NELSAP) in collaboration with the African Development Bank (AfDB).

In Kenya, Lessos area in Nandi district is expected to receive 220 Kilo Volts (KV) with a 256km interconnection line from Bujagali Power Station in Uganda. The interconnection aims at creating a regional power network.

Other countries set to benefit from the programme slated to start at the end of next year are Burundi, Democratic Republic of Congo, Rwanda and Uganda.

Power exchange market

It is expected that the project will create a power exchange market among the five countries and lower the cost of electricity, Antoine Sendama, NELSAP regional co-ordinator said in a statement.

"The interconnection lowers the cost of power supply, ensures system stability, security of supply and optimises the use of energy resources." the statement read in part. Joseph

Sendama said the project will also update the feasibility study of the Lessos and Olkaria projects in the country.

Terer, the NBI project manager said besides providing electricity to rural areas to spur economic growth, the project is expected to ease the high costs of electricity.

Consultation with donors

Uganda’s Energy minister, Eng Simon D’ Ujanga launched the programme at the Grand Imperial Hotel in Kampala last week following a two-day meeting with officials from the five countries and the donors.

While each of the benefiting countries is expected to implement the projects falling under its territory, NELSAP will establish a co-ordinating and implementation unit at the regional level.

Tanzania will be linked to the regional electricity grid through a planned interconnection with Kenya in the north western part to Rusumo Falls Hydropower Project shared among Burundi, Rwanda and Tanzania.

Years after Kenya launched an off-shore oil exploration bid, multinational companies are still erecting rigs deep in the sea with the hope of striking the black diamond.

The latest entrant into the turbulent waters is Origin Energy (K) Limited, a subsidiary of Original Energy Limited, Australia.

The company is currently assembling a rig to explore Bloc L8 for oil and gas, 100 nautical miles east of Malindi.

The chief geologist in the Ministry of Energy, Mr John Omenge, told journalists at Eden Roc Hotel in Malindi on Thursday: “When you look at the zeal and enthusiasm displayed by these companies, you know it is not for nothing.”

Mr Omenge said there was a lot of hope that the companies would strike oil soon, and urged the relevant government departments to cooperate with the company so that it realised its objectives.

Huge reserves

He said Tanzania, which lies within the same Indian Ocean Basin as Kenya, had discovered huge reserves of gas, adding that it was almost automatic that the Kenyan Coast had similar reserves.

The Origin Energy (K) Ltd Company operations coordinator Neil Taylor said the survey and exploration programme could begin in November or December.

“It’s a US$ 10 million-dollar programme (about Sh760 million) that will take six weeks to complete,” said Mr Taylor, adding that a special ship for the job was expected in the country in the next few days.

Origin Energy has completed a similar survey in Bloc 9. The blocs have separate licences for exploration from the government and each covers about 700 square nautical miles. The company will use the 3D Sysmic Survey method for the study.

Environmental issues

Mr Taylor said environmental issues had been taken care of after the company held a meeting with environmental stakeholders earlier in the week.
“They survey will be carried out very carefully,” he said. “The process is designed in such a way that it does not interfere with the ecosystem.”

Mr Taylor raised concern over insecurity at the sea, but Malindi district commissioner Arthur Mugira assured the exploration company that tight security would be in place.


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I know there is so much Oil off Kenya and TZ coasts. they are just not serious about finding it that why nothing has come out yet.

I know there is so much Oil off Kenya and TZ coasts. they are just not serious about finding it that why nothing has come out yet.

I wouldn't be too overjoyed if they did find oil...at least not now.

I wouldn't be too overjoyed if they did find oil...at least not now.

im with you

I wouldn't be too overjoyed if they did find oil...at least not now.

Well, i'm not overjoyed, but i'm happy.

So it's ok for Kenya and TZ to continue being dependent on foreigners supplying you Energy?

But what's the point of sending money to the Middle East countries instead of own?


It will be a great thing for your economies. Kenyans and TZns will spend less money on oil for their cars. Which means they will have more purchasing powers.

It will be great for Business even more. Meaning they will spend less money on transposrtaion coast. meaning the agroculture industry will spean less money as well.


it's a great thing to produce your own oil.

Butembo,
Those of us from Kenya who are hoping that we never discover oil do so because of the fear of turning into what other mineral-rich countries have. Your own country is a classic example, but so are Nigeria, Angola, Equitorial Guinnea and the rest. The average African never seems to benefit from these rich because of corruption and resource looting that is encouraged by foreign companies.

Well, i'm not overjoyed, but i'm happy.

So it's ok for Kenya and TZ to continue being dependent on foreigners supplying you Energy?

But what's the point of sending money to the Middle East countries instead of own?


It will be a great thing for your economies. Kenyans and TZns will spend less money on oil for their cars. Which means they will have more purchasing powers.

It will be great for Business even more. Meaning they will spend less money on transposrtaion coast. meaning the agroculture industry will spean less money as well.


it's a great thing to produce your own oil.

Butembo,
Those of us from Kenya who are hoping that we never discover oil do so because of the fear of turning into what other mineral-rich countries have. Your own country is a classic example, but so are Nigeria, Angola, Equitorial Guinnea and the rest. The average African never seems to benefit from these rich because of corruption and resource looting that is encouraged by foreign companies.

I understand your fear.

Butembo,
Those of us from Kenya who are hoping that we never discover oil do so because of the fear of turning into what other mineral-rich countries have. Your own country is a classic example, but so are Nigeria, Angola, Equitorial Guinnea and the rest. The average African never seems to benefit from these rich because of corruption and resource looting that is encouraged by foreign companies.

^^i understand the fears but it will be useless to shun wealth for the sake of fearing the unforeseen risk.:lol: what is your take about the new minerals discovered if its true. see the from the links below

http://www.businessdailyafrica.com/Company%20Industry/-/539550/661038/-/item/1/-/mco6tp/-/index.html

http://www.businessdailyafrica.com/Company%20Industry/-/539550/651542/-/item/3/-/whx22d/-/index.html

^^this maybe could join us the league of mining nations:)

^^i understand the fears but it will be useless to shun wealth for the sake of fearing the unforeseen risk.:lol: what is your take about the new minerals discovered if its true. see the from the links below

http://www.businessdailyafrica.com/Company%20Industry/-/539550/661038/-/item/1/-/mco6tp/-/index.html

http://www.businessdailyafrica.com/Company%20Industry/-/539550/651542/-/item/3/-/whx22d/-/index.html

^^this maybe could join us the league of mining nations:)

We are not shunning wealth. I think its a better idea to first build up other sectors like agriculture, tourism, service and manufacturing industries before we start mining. Once oil money enters the equation at this point in time, many other sectors will take a back seat and we may loose the little gains that we have made.

^^ Kenya should learn from the mineral and Oil Giants DRC and Nigeria . Our mistakes should be your reference to how differently you can behave.

Residents of Coast Province will get relief from power rationing, after the injection of an additional 51 megawatts (MW) of electricity into the national grid by Rabai Power Station.
The Independent Power Producer (IPP) will be using both diesel and steam turbines to generate the power.
This is expected to slightly reduce the cost of power for consumers.
"This is very commendable because the project managers identified with the challenges we are facing and accelerated work so that we enjoy power from the station earlier than planned," said Energy Minister Kiraitu Murungi.
His comments were in a speech read on his behalf by Assistant Minister Charles Keter, during an inspection and commssioning of the new power plant at Rabai, in Kaloleni District. It was initially to start production in December. It is projected that by the first week of next month, the emergency power (140 MW) being provided by Aggreko Limited, will enable the Kenya Power and Lighting Company Limited to end the national reationing programme.
Murungi said that while Coast Province will enjoy uninterrupted power supply, the rest of the country including Nairobi, Mt Kenya, Central Rift, North Rift and Western Kenya will soon see normal supply resume.
New sources from Mumias Sugar Company, Iberafrica and KenGen’s wind turbines at Ngong increased the power supply available.


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Oil refinery seeks to upgrade plant

http://www.nation.co.ke/image/view/-/665230/highRes/104553/-/maxw/600/-/13fvacr/-/KPRL.jpg The Kenya Petroleum Refinery in Changamwe, Mombasa. Photo/FILE
By MWAKERA MWAJEFAPosted Tuesday, September 29 2009 at 15:51

Kenya Petroleum Refineries Limited (KPRL) is studying various proposals from oil industry experts on how to upgrade its facilities to produce a targeted four million tonnes per year.

Currently, the plant produces 1.6 million tonnes which fall short of the local consumption of 3.2 million yearly, says KPRL general manager John Mruttu.

“Our modernisation programme is estimated to cost Sh31.2 billion ($400 million) and this is a colossal sum that will need proper planning before investment,” he said in a telephone interview on Tuesday.

Mr Mruttu said that if the project takes off, it would enable the country to not only satisfy its own needs, but also export petroleum products to neighbouring countries.

“To counter the pressures created by new refining capacity in the Arabian Gulf and Indian subcontinent, we must streamline our oil industries in Africa to meet international markets,” he said.

Operations of the refinery are normally affected by two challenges; inadequate water supplies and periodic power outages.

This, according to KPRL human resources manager Martin Wahome, is a major “headache” facing the oil industry’s refining capacity on yearly basis.

“Although we are 100 per cent compliant on products’ standards, water and power interruptions are causing us sleepless nights,” he said.

Unheard of

The plant requires two million litres of water daily for running the boilers and cooling other equipment.

Compared to its counterpart in Cote d’Ivoire, process division manager Raphael Souduga says their refinery has its own water supplies and power for operations.

“Lack of water or power is unheard of in Cote d’Ivoire because our plant does not depend on other suppliers for water or power,” he said.
Speaking during the second day of African Refiners Association workshop in Mombasa, Mr Souduga said his country produces more petroleum products than it requires for local consumption.

“We produce 4 million tonnes per year where 1.5 million is used locally and the rest sold to Benin, Togo, Sierra Leone, Burkina Faso and Nigeria where we get our crude oil from,” he said.

To achieve reasonable success, Mr Souduga said their plant maintenance is done on a five-year-basis by contractors from Europe and elsewhere depending on the technology required at the time.

http://www.nation.co.ke/image/view/-/671430/highRes/107159/-/maxw/600/-/10aj6f2z/-/oil-rig.jpg An oil rig near the shores of Lake Albert in western Uganda. Unlike Uganda which has discovered oil, Kenya’s search for the resource will intensify with the beginning of drilling in the next two weeks. Photo/FILE
By MWANIKI WAHOMEPosted Monday, October 12 2009 at 17:32

Kenya’s search for oil will intensify with the drilling of oil at Boghal near Isiolo in the next two weeks.

Energy minister Kiraitu Murungi said the government had signed 18 oil production sharing contracts in the last 18 months noting that they were at various stages of exploration.

Speaking during the opening of the second South-South meeting on gas and oil management at Windsor Golf and Country Club in Nairobi, the minister said exploration had been stepped up in recent years. He said there were high hopes that the country could strike oil soon.

“For many years, Kenya has been part of the neglected East African exploration frontier. However, in the last five years, we have intensified the search for oil and gas in all our sedimentary basins,” said Mr Murungi.

He said China National Offshore Oil Corporation, which will undertake the drilling, was mobilising the equipment for sinking the well.

The minister said the well would be five kilometres deep and is estimated to cost the company $26 million (Sh2 billion).

This is the second major attempt at finding oil in recent years after an Australian company, Woodside Energy sank Sh5 billion into the three-kilometre deep well off the Lamu coast that bore no fruit.

“This will be the deepest well ever drilled in Kenya. With the discoveries in Sudan, Uganda and Tanzania, we believe Kenya is now standing at the door. It is only a matter of time,” said Mr Murungi.

He said there was need to sharpen negotiation skills to manage the anticipated oil revenue to benefit the people, noting that the country would learn from the ongoing conference.

Mr Murungi, however, warned that increased agitation by non-governmental organisations could slow down efforts at exploiting the country’s oil potential.

He said some associated oil exploration with dictatorship, imperialism, exploitation, neglect of agriculture, marginalisation and civil strife on the continent.

The minister said Kenya would strive to benefit the communities residing where oil will be discovered to alleviate poverty.
Vice-President Kalonzo Musyoka, who represented President Kibaki at the opening ceremony, said it was projected that oil and gas would account for two thirds of global energy consumption by 2020.

Out of this, 80 per cent in oil demand will be in developing countries, which will account for 46 per cent of the world oil consumption by 2025.

The conference ends on Thursday.


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http://www.theeastafrican.co.ke/image/view/-/673372/highRes/108137/-/maxw/600/-/43use4/-/home+pix.jpg China National Offshore Oil Corporation’s Xie Wensheng (right), former Chinese envoy Zheng Ming and Education Minister Sam Ongeri at Isiolo Stadium recently. The firm supported various community projects. Photo/FILE
By CATHERINE RIUNGU (email the author (javascript:void(0);))



Posted Monday, October 19 2009 at 00:00

Kenya is smelling petrodollars. The EastAfrican can authoritatively report that in two weeks, the country is expecting to join the league of oil producers on the continent.




Energy Minister Kiraitu Murungi was bubbling with optimism when he told this newspaper on Thursday, “In a matter of days, we could be celebrating. God willing, I shall be announcing a historical discovery at the end of the month.”

Christmas will indeed come early should the drilling of a five-kilometre deep well in Isiolo by a Chinese firm, set to begin next week on October 28, strike oil.

And this time around, unlike as with past attempts that ended in disappointment after sinking billions into empty wells, Mr Murungi insisted, “We have done our homework and all indications are that Kenya will join Uganda in celebrating the status of a new oil producer.

“We can’t tell the size of the deposits we have yet, and there is a remote possibility that they may not be sufficient to qualify for commercial drilling, but that too will be known at the end of the month,” he said.

He added that he was convinced the seismic trials undertaken over the past two years are not lying.

Kenya’s optimism is informed by the geographical location of the prospective deposits — “not too far” from oil-rich Southern Sudan, whose deposits, according to the Ministry of Energy, extend into the neighbouring areas of Kenya, and also feed Uganda’s newly discovered deposits, which are found even under Lake Victoria.

The China National Offshore Oil Corporation will start drilling for oil at Block 9, Bogal 1-1, near Isiolo in northern Kenya next week.

The company is expected to spend up to $20 million to drill the Bogal 1-1 well.

Over the past three years, the company has invested about $15 million to gather data and analyse it.

“The Anza basin well will be the deepest ever drilled in Kenya,” Mr Murungi said.

The company is also licensed to explore oil deposits in the Lamu basin.
To cement Kenya’s new status, the country is moving to join hands with international organisations to put in place prudent management systems for its envisaged oil wealth.




It is among the first supporters of the formation of a South-South Energy Fund that was proposed in a meeting held in Nairobi last Monday.

The fund’s mandate will be to train high-level energy experts such as reservoir engineers, petroleum economists, geoscientists and petroleum lawyers.

It will be managed by a secretariat based at the United Nations Development Fund in the country’s capital.

The personnel to be trained will be placed in selected universities around the world.

“(We) resolved to set up a South-South Energy Fund with a secretariat managed by UNDP in Nairobi,” Mr Murungi said, adding that Kenya is vying for the position of secretary general of the fund.

Kenya and Liberia have each pledged to contribute $100,000 as seed capital to fund the secretariat’s establishment. The UNDP has pledged $1 million.

Addressing the Second South-South High-Level Meeting on Oil and Gas Management at the United Nations headquarters in Nairobi, Mr Murungi said: “We in Kenya would like to manage our oil and gas resources in a manner that promises maximum benefit to our people, and to modernise our physical and social infrastructure.”

He invited petroleum exploration companies to apply for the remaining 14 blocks.

“We believe there is plenty of oil and gas in Kenya and we are confident that we shall make commercial discoveries.”

The minister said: “With discoveries in Sudan, Uganda and Tanzania, we believe that Kenya is now on the threshold, too. It is only a matter of time.”

“Africa’s economic salvation lies in its vast oil and gas reserves. As is evident in the Middle East, where oil and gas have transformed barren desert economies, well-managed oil and gas resources can be principal agents of socio-economic transformation in Africa. Accelerated development of Africa’s upstream industry is our quickest route out of poverty,” Mr Murungi said.
Out of the 30 investigative wells drilled in Kenya, 19 have shown traces of hydrocarbons, though none are in commercial production.




The country has signed 17 production-sharing agreements over the past 18 months, and there are 14 blocks available for oil and gas exploration.

In another planned investment in the industry, Origin Energy Ltd, an Australian company, aims to start gathering data for an exploratory study in the Indian Ocean near Malindi.

Mr Murungi struck a note of caution as well, saying: “There are those who see oil as evil. Oil extraction in Africa has been associated with dictatorship, tyranny, imperialism, exploitation, neglect of agriculture, corruption and abuse of human rights... Hence the question: ‘Is oil a blessing or a curse in Africa?’”

Meanwhile, Mr Murungi has been listed to present a keynote address at the 16th Africa Annual Oil Week to be held from November 4-6 in Cape Town, South Africa.



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Kenya has inched closer to joining the league of “big oil” African countries as exploration reports indicate existence of oil and natural gas reserves in the Upper eastern region and Coastal strip.




Last week, Kenya’ Energy Minister Kiraitu Murungi expressed optimism that increased oil and gas exploration activities in the country indicate prospects of striking the black gold.

According to Mr Murungi, Kenya’s search for oil has been stepped up in recent years, with indications that oil could be struck soon.

He said China National Offshore Oil Corporation (CNOOC), which will undertake the drilling in Upper Eastern province town of Isiolo, was mobilising the manpower and equipment for sinking the well. The drilling commences this month.

It is estimated that Kenya’s Coastal region has the potential of producing around 100 million barrels of crude oil and 600 billion cubic feet of natural gas.

The well to be drilled by the Chinese could produce an estimated 1.7 billion barrels of oil.

This, it is said, could turn around the economy of the country, which currently uses an estimated 80,000 barrels a day.

Kenya’s Coastal region has the potential of producing around 100 million barrels of crude oil and 600 billion cubic feet of natural gas annually.

The well in Isiolo is expected to be five kilometres deep and is estimated to cost the company $26 million.

This is the second major attempt at finding oil in recent years after an Australian company, Woodside Energy sank a Ksh5 billion into the three-kilometre deep well off the Lamu coast that bore no fruit.

“This will be the deepest well ever drilled in Kenya. With the discoveries in Sudan, Uganda and Tanzania, we believe it is just a matter of time before Kenya succeeds too. It is only a matter of time,” said Mr Murungi.

The minister was addressing a gas and oil management conference in Nairobi last week.
He said that the government has signed Production Sharing Contracts with SOHI Gas Lamu and SOHI Gas Dodori and hopes to strike natural gas following similar discoveries off the coast of Tanzania recently.




“There are a number of companies currently negotiating with the Kenya government for open acreage both onshore and offshore,” Mr Murungi said.

Geologists are optimistic that huge deposits could be struck in the area arguing that Kenya failed to strike oil and gas in earlier attempts due to low exploration activities in the past.

The country has so far drilled 40 wells in the 400,000 sq kms belt of exploration basins instead of 400.

Australia-based Gippsland Offshore Petroleum and its partner Pancontinental Oil & Gas say they have completed a geophysical survey of a 6300 kilometres of the Lamu basin by air and gathered enough data suggesting the existence of oil and gas reserves.

“For many years, Kenya has been part of the neglected East African exploration frontier. However we have over the last five years intensified the search for oil and gas in all our sedimentary basins,” said Mr Murungi.

The oil find in Kenya could herald a regional oil boom, following similar discoveries in Uganda and Tanzania.

The discovery in Uganda in 2006 sparked massive interest in Kenya’s oil search with 14 companies showing interest to undertake exploration in a span of less than two years.

Kenya has so far attracted 11 international exploration companies, National Oil Corporation of Kenya chief executive Mwendia Nyaga said recently.

Mr Murungi expressed optimism that natural gas reserves could be found in Lamu area even though earlier searches by Woodside Energy of Australia were unsuccessful.

The Australian exploration giant drilled Pambo well at an estimated Ksh7 billion in the deep sea, but hit fresh water instead of oil.

Mr Murungi said the government had signed 18 oil production sharing contracts in the last 18 months noting that they were at various stages of exploration.
Discoveries of oil in Uganda and gas in Tanzania and Rwanda has propelled the search in Kenya, where oil and gas exploration companies have blown up billions of shillings in search of reserves.




Uganda has struck substantial reserves of oil, while Tanzania has discovered four gas fields so far.

Australian oil exploration company, Hardman Resources discovered oil in Uganda in October 2006 where commercial production is expected to commence in two years with initial estimates of 6,000 to 10,000 barrels a day.

Uganda has already commenced the development of a small refinery, commonly known as a topping plant, which would have a processing capacity of 4,000 barrels a day.

This translates into 156,000 tonnes of fuel oil and 32,000 tonnes of white products (like diesel) a year.

The three fields in western Uganda, where the oil has been discovered, have reserves of between 100 million and 300 million barrels, with 30 million barrels ready for extraction at just more than 12,000 barrels a day.

However, even as oil search gathers full steam, there are fears that cash strapped National Oil Corporation of Kenya (Nock) risks locking the country into agreements that could prove costly in the long term.

The fears are hinged on the premise that lack of cash renders NOCK unable to carry out independent oil search and has to enter into agreements with multinationals on how to share revenues from oil finds.

This is seen as risky in the event that searches are found to have potential for oil and gas on commercial scale.

Nock has adopted a development model used by governments in most countries.

The agreements, known as production sharing agreements (PSAs) are sealed by production sharing contracts (PSCs).

And are largely political in nature; technically, they keep legal ownership of oil reserves in the hands of the State, but in reality, they give oil companies full control over the operations and management of established oil wells.

Any disagreements can only be resolved by international arbitration, guided purely by commercial rather than national interests or laws.




In effect, therefore, Kenya risks handing over any future oil wealth to the complete control of foreign companies.

Last year, the Government signed PSCs with international oil companies for 19 out of the country’s 38 blocks.

The companies that have signed PSCs for oil exploration so far are Origin Energy, Gippsland, Camec, Lundin Kenya Bv, Vangold, Lion Petroleum and Turkana Drilling Consortium.

Others are EAX, SOHI Gas Lamu, SOHI Gas Dodori, Platform Resources and China National Offshore Oil Corporation (CNOOC).

However, Kenya is said to have the longest history of oil and gas search in the region spanning 60 years, but initial indications for Kenya having oil and natural gas potential were made in a 1993 world geological survey conducted by the United States Department of interior.

There are 11 international oil companies carrying out petroleum exploration activities in the country’s 19 out of 38 acreage blocks.

Thirty one exploration wells have been sunk, some of which have shown oil and gas traces, but no discovery has been made so far of significant deposits.

Recently, Africa has emerged as a leading oil exploration frontier with prospecting companies repositioning themselves as the global economy recovers from financial crisis.

In the past the oil and gas exploration in Africa was dominated by European and American firms but the trend is changing with Chinese, Indian and other new entrants competing for a piece of the pie. Petronas of Malaysia, China National Offshore Oil Corporation and China National Petroleum Corporation are among the companies that have increased their operations on the continent.

Oil experts estimate that up to $300billion has so far been sunk in oil and gas exploration projects in Africa

^^lets hold our breath for the time being:) wacha ikulane:cheers:

^^the china government is alleged to have pledged to undertake the entire second corridor projects at one shot, so is there any correlations between this and the expected oil discovery by the china oil firm CNOOC? :dunno:

by John Njiraini
The political and economic configuration of the East Africa region is set for a critical economic transformation as countries engage in an unprecedented oil race — even as Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/InsidePage.php?id=1144026647&cid=4&#) declares it is ‘smelling’ oil.
Prime minister Raila Odinga, who is currently in China on official duties, has successfully brokered a deal that would see oil from Southern Sudan exported through Kenya after refinement at the port of exit.
The deal and the recent discovery of oil in Uganda puts Kenya at a strategic position to claim a slice of the billions of dollars from oil revenue to transform her struggling economy that almost ground to a halt after the disputed General Election of 2007.
But this strategy appears to be running parallel to the muted talk in Government that a statement on discovery of oil on Kenyan soil could be coming before end-month. Energy minister Kiraitu Murungi was this week quoted by a regional paper saying: "In a matter of days we could be celebrating. God-willing, I shall be announcing an historical discovery at the end of this month." It is believed to be another Chinese venture, at Isiolo, which is 5 kilometres deep. Kiraitu added: "We have done our homework and all indications are that Kenya will join Uganda in celebrating the status of a new oil producer."

But with the biggest oil companies in hot pursuit of the few remaining major energy players, and just in case the dream of a Kenya with oil wells is a stillborn, Raila is driving a harder bargain to position the country as a gateway to the unexploited oil riches of Uganda and Southern Sudan.
Raila says Kenya, which has no oil of its own and could benefit from the disadvantaged position of both oil baskets as landlocked, turned to China as a second option. The initial agreement was the Sh270 billion deals with Qatar in exchange for 40,000 hectares of land to grow crops; but the deal was signed between the two states.
Chinese companies
But in what could make or break the economic prosperity of Kenya, Uganda and Sudan, countries in the region are already plotting on how to maximise benefits from the ‘black gold’.
In recent days, Kenya, Uganda and Southern Sudan have been cutting deals with mainly Chinese companies in what is being interpreted as an oil race for petrodollars.
Kenya, which until recently has been a passive player, has joined the race with excitement on the prospects of striking its own oil, but could still cash in from the petrol fortunes by providing infrastructure should her wells turn out to be dry.
Create employment
Raila’s successful negotiations with the Chinese Government would see oil from Southern Sudan exported through Kenya.
The Chinese Government has agreed to fund the construction of key facilities that include rail and road network, a pipeline, and refinery. "This deal is good for us because it means Kenya will benefit from transportation charges and creation of employment," said Mwendia Nyaga, the managing director of state-owned National Oil Corporation (Nock).
Raila himself said when the deal went through: "The Chinese offer the full package." He was referring to the fact that China’s offers a one-stop shop in terms of the financing and technical expertise with which its banks and construction firms have placated Africa.
Conservative estimates show that Kenya could earn a Sh7.5 billion annually for transporting 2.5 million tonnes of oil from Southern Sudan through Kenya.
Necessary infrastructure
This is based on projections that Southern Sudan exports 50,000 barrels per day, which translates to 2.5 million tonnes per year and using the fact that Kenya Pipeline Company (KPC) charges $40 per every ton that passes through its facilities.
According to experts, the immediate challenges are in building the necessary infrastructure to connect the two countries considering that a massive $1.6 billion (Sh125 billion) is required to build the 1,600 km pipeline alone from Southern Sudan to Lamu.
Though the most feasible strategy would be to build a pipeline from Southern Sudan and another one from Uganda to meet at around Lake Turkana and proceed to Lamu as one pipeline, huge egos among countries is hampering co-operation. "The investments required are enormous and there is need for close co-operation among the three countries," said Patrick Obath, the chairman of Kenya Private Sector Alliance (Kepsa).
The decision to go alone could see the region become a haven for oil facilities that are largely underutilised. According to Obath, construction of multiple refineries and pipelines creates challenges for the region and could end up being a costly affair in the long run.
"You don’t need facilities that would be idle most of the time," he said. This view gives Kenya unenviable position owing to its location to host the two oil rich neighbours.
Only recently, the Government of Southern Sudan passed a resolution to safeguard its oil resources starting with the construction of a $1.5 billion refinery with a capacity to process 50,000 barrels per day.
Uganda question
Coming soon after the launch of a report dubbed ‘Fuelling Mistrust’ by Global Witness that said Southern Sudan has not been getting a fair share of oil revenues from the Khartoum Government, the move has been interpreted as preparing to secede.
Southern Sudan is preparing for a referendum in 2011 to decide whether it should be an independent state from the North in accordance with the Comprehensive Peace Agreement signed in Nairobi in 2005.
Then there is Uganda, which has been complicating the political relations in the region with chest thumping since discovering huge deposits of oil in Lake Albert Rift Basin.
The country is currently undertaking a feasibility study for construction of a refinery with a capacity of 150,000 barrels per day at an estimated cost of $2 billion.
However, being a landlocked nation, Uganda must still construct a pipeline to export the refined product is torn between using Kenya or Tanzania for political reasons.
Revive her refinery
Though building a pipeline to connect the oil richttp://www.skyscrapercity.com/newreply.php?do=newreply&noquote=1&p=44805220h country to Port of Mombasa is cheaper, Uganda is contemplating building one to the Port of Dar-es-Salaam due to political instabilities in Kenya going by the post-election violence last year.
And as Kenya undertakes the upgrading of the Kenya Petroleum Refinery after selling 50 per cent to Essar of India, Tanzania is seeking for an investor to revive her refinery, which is currently acting as a bulk storage facility.
With demand for oil in the region estimated to be around 250,000 barrels per month, there is high likelihood that most of the facilities could become a waste of money in building them.
And although the demand for oil in the region has been on a steady growth in recent years, the rate of economic growthhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/InsidePage.php?id=1144026647&cid=4&#) is not in tandem with the production of the refineries.


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^^that is good idea too if we could not strike it at home we still benefit from the stages of the value addition process if our neighbours accept the noble gesture to export and transport their oil products through Kenya.:) good work agwambo:cheers:

Construction of a Sh20 billion electricity transmission line is set to commence after the Government secured financing for the project.
Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144026663&cid=14&#) Electricity Transmission Company said it has secured a loan facility for construction of the high voltage 400 kV line from Mombasa to Nairobi.
The funds came from the African Development Bank, France Development Agency and the European Investment Bank with each availing Sh6 billion. The Government also committed an additional Sh6 billion.
The money is intended to finance the line that would be used to transport thermal power being generated at the newly commissioned Rabai power station that has a capacity of 50 MW.
The funds would also be used to construct a 220-kv line to connect a new thermal power planthttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144026663&cid=14&#) being built in Embakasi by Tsavo Power with a capacity of 56 MW to the national grid.
Ketraco has already contracted Parsons Brinckerhoff of United Kingdom as the project consultant and has put out bids for the design, manufacture, supply and erection of thelines.
New embakasi plant
"We intend to open the bid in January and award the contract in March and we anticipate it will take 27 months to complete the job," said Andolo Ambasi, the Project leader.
Construction of the Mombasa - Nairobi transmission line has been identified as one of the key projects that would ensure constant supply of power for the capital city.
It comes soon after the country emerged from a biting power rationing program due to over-reliance on hydro generation.
Though the line would guarantee uninterrupted thermal supply, observers are weary the country is committing to relying on the expansive mode of power generation.
Diesel verses Water
Due to a prolonged drought over the past three years, burning of diesel has replaced hydro as the main electricity generation form.
With the unpredictability of crude oil priceshttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144026663&cid=14&#), there are fears Kenyans and manufacturers would continue paying a high price for power.
The lines are part of huge investments being undertaken in transmission and distribution facilities over the next six years in efforts to meet power demand expected to increase by an average of eight per cent annually.
Other transmission projects to be undertaken include 1,500 km of 132 kv line to support the rural electrification programme and the 1,100 km Kenya-Ethiopia inter-connector that will enable the country buy electricity from Ethiopia.

Kenya, France agree Sh12.7bn in energy funding

http://www.nation.co.ke/image/view/-/675122/highRes/108756/-/maxw/600/-/crmldc/-/Raila_odinga.jpg Prime Minister Raila Odinga. Photo/FILE
By REUTERSPosted Wednesday, October 21 2009 at 16:11

France has agreed to give Kenya Sh12.7 billion for its energy sector, the office of Kenya's Prime Minister said on Wednesday.

Some Sh7.2 billion of the new funds will be used to buy two rigs and to build capacity in the recently formed Geothermal Development Company (GDC), which is mandated with development of the country's considerable geothermal reserves.

The balance will go towards the existing Ol Karia Geothermal Power project, which is run by the nation's main electricity generator, KenGen.

"They have also agreed to increase funding for the Ol Karia Geothermal Power project by Sh5.5 billion and also pledged to help Kenya shift from reliance on fossil fuels to green energy," an official statement said.

In March, KenGen said it had acquired a $300 million from the French Agency for Development (AFD) for the third phase of the Ol Karia project.

Kenya estimates it has the potential to generate 3,000 MW of geothermal power from the Rift Valley region.

Officials say geothermal, which accounts for 200 MW of the East African nation's electricity output, is expensive to tap, but cheaper for the economy in the long run.

The agreement on the new funding which was agreed between AFD and Kenyan government officials led by Prime Minister Raila Odinga is subject to approval of the AFD's board, a statement from Odinga's office said.

It added that France had shown its willingness to support Kenya's efforts to diversify its sources of power through development of solar and wind generation plants.


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Geothermal Development Company will fast-track the exploration and exploitation of geothermal energy in the country to increase the country’s power output.

The firm will carry out appraisals and divide potential areas into blocks and concession the steam wells to investors.

Chief executive Silas Simiyu said that over the past 30 years, the country has only harnessed 167 MW of power out of the potential 7,000 MW.

“The massive resource has been lying idle for ages. Of the 7,000 MW geothermal potential, the sector is contributing only 167 MW or 22 per cent to the national grid,” said Mr Simiyu.

He said hydro energy was no-longer reliable as it is prone to the vagaries of weather.

“Geothermal in this country has a base load of 95 per cent making it the most reliable source of energy,” he said.

Mr Simiyu, however, said that exploiting geothermal energy requires heavy initial capital investment thus scaring away potential investors adding that the government, had committed itself to meeting the initial costs that will develop the steam fields.

“It will be difficult to progress economically in the absence of affordable, reliable and clean energy,” said the CEO. He spoke at a workshop for geothermal experts at a Naivasha hotel on Sunday.

Volcanic activities

Initial studies indicate that there are some 14 high potential geothermal sites running along the Rift Valley which is at the centre of volcanic activities.

Speaking at the same function, Prof Hiroyuki Hino the economic advisor to the Prime Minister said the government’s goal was to ensure steam worth generating close to 4,000 MW of electricity in the next 20 years.

“This development plan aspires to power Kenya into a mid-income economy. To achieve this, GDC and KenGen will need trained experts,” he said.

Mr Hino described the geothermal firm as a special purpose vehicle created by the Government of Kenya to explore and the vast geothermal resource in the country

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Kenya will with the support of donors set up a $2 billion (Sh150 billion) revolving fund to lend those investing in climate-friendly green electricity generating projects. The Ministry of Finance said World Bank, French Development Agency, KfW of German and African Development Bank had agreed to help the government set up the fund.

Finance permanent secretary Joseph Kinyua said the money will be lent to the private sector to invest in commercially viable geothermal, solar and wind electricity production projects. He said the aim is to scale up investment in renewable energy sources that have low carbon emissions to provide affordable power.

It will also reduce reliance on drought prone hydro and expensive fossil fuel electricity generation modes. Speaking in Nairobi during the green electricity conference, Mr Kinyua said the government in this year’s budget allocated Sh500 million for lending to small and medium enterprises to invest in renewable energy production.

Kyoto Protocol

The PS said the government is considering granting of sovereign guarantees to independent power producers. Mr Kinyua said that Kenya is negotiating for clean development mechanism funds of the Kyoto Protocol to benefit from carbon trading through reduced emissions.

Energy permanent secretary Patrick Nyoike said Kenya is committed to enhancing green projects output as geothermal, biomass and wind-based power systems are much cheaper than fossil fuel plants. He said the country will implement green energy power generation projects with capacity of 2,000 megawatts by June 2012 through mobilising technical and financial resources to expedite construction and commissioning.

Mr Nyoike said the government will continue to undertake resource assessment and provide results to private investors. Already, wind resource assessment for 33 sites is in progress and a survey of 14 small hydro sites will start in January 2010, he said.

At the same time, the government is developing a plan that will see Kenya attain a green economy status by the year 2020 using electricity generated from climate-friendly projects with low carbon emissions. Prime Minister Raila Odinga speaking at the same event said Kenya’s plan entails increased investment in renewable energy sources.

He said the government will allocate more resources and even borrow on commercial terms to develop geothermal fields as Kenya has to produce power with reasonable tariffs that translate to reduced costs to end users. Mr Odinga said the government has received attractive proposals of a combined capacity of over 1,000 megawatts but the high cost associated with developing wind, solar and bio-mass hinders the potential of such sources.

United Nations Environment Programme said although Kenya has great potential for green energy, its weakness lies in formulating the right policies and commitment to harness fully the resources. Executive director Achim Steiner said the cost of green energy has been tumbling and in 2008 more was invested in wind, solar and geothermal globally in the sector than in oil and gas generation.

French ambassador to Kenya Elisabeth Barbier said Kenya has made progress in electricity supply. She, however, noted that connection rates remains low with 20 per cent of households in urban areas and 10 per cent in rural accessing power.

Plagued by incessant power shortages due to unreliable rainfall that feeds the country’s hydropower plants, the Government is turning to alternative sources of power production.
Ahead of the UN’s climate change (http://www.standardmedia.co.ke/InsidePage.php?id=1144029679&cid=4&ttl=State%20bets%20big%20on%20clean%20energy#) summit in Copenhagen, many believe power shortages are more than an immediate crisis.
Even the current rains have not eased the burden off Kenyans’ shoulders as electricity bills continue to soar.http://www.standardmedia.co.ke/images/saturday/nhcap051209_01.jpgGeothermal steam field at Olkaria in Naivasha.
[ERICK WAMANJ: STANDARD]

But this may soon change as the newly created Geothermal Development Company (GDC) — a parastatal in the Ministry of Energy — is promising to turn the energy sector around as early as next December.
Energy Minister Kiraitu Murungi says the country’s electricity base load will shift from hydro-based to geothermal in the next 10 years.
"With 7,000 MW geothermal potential, why should Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/InsidePage.php?id=1144029679&cid=4&ttl=State%20bets%20big%20on%20clean%20energy#) not be a leading producer of geothermal electricity?" poses Kirairu.
His sentiments are echoed by Energy PS Patrick Nyoike.
A break with the past
"We are at the tail end of hydropower production. We can only add another 75 MW from this source to the national grid and it is important to explore alternative sources," says Nyoike.
Already GDC has mapped out potential areas to drill for geothermal steam. Last week, it signed a contract to sink about 10 wells at Olkaria Domes in Naivasha beginning January, next year.
The 10-month project is expected to supply electricity equivalent of 140 MW to the Olkaria IV power planthttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/InsidePage.php?id=1144029679&cid=4&ttl=State%20bets%20big%20on%20clean%20energy#).
GDC Managing Director Silas Simiyu says once this resource is tapped, the cost of electricity is expected to reduce by about half.
"It is sad that we have suffered heavy electricity burden over and over. However, this is bound to change once we start drilling. GDC is committed to provide green, reliable and affordable electricity such that every village in this country will be lit, and any industrialist will be assured of steady supply," says Dr Simiyu.
He says GDC has entered into agreement with KPLC to "evacuate the power" from the geothermal sites. KPLC, through the Kenya Electricity Transmission Company, will install transmission lines to tap power from the geothermal plants.
In the short term, the company plans to produce more than 200MW of electricity beginning next year.
"Ours is a paradigm shift on tapping geothermal resources. Our model of early generation will shrink the gestation period of electricity production from seven years to six months. At this rate, we will be providing 200MW to the national grid," Simiyu told a Green Energy Conference in Nairobi last week.
And he bets on the geothermal power to lead the way in the Government’s ‘going green strategy’, which will earn the country carbon credits.
"Today the world is going green and we are firmly committed to contribute to this global agenda. Clean, renewable and sustainable energy is the only way to save planet earth from collapsing. That Kenya is endowed with abundant geothermal resources is a privilege. All our efforts should now be channelled towards this environment-friendly source of energy," he says.
Studies show Kenya has a geothermal potential of 7,000 MW. The geothermal fields are strewn in the Rift Valley and parts of western Kenya.
But even with this enviable potential, the country exploits a mere 167 MW from plants situated in Olkaria.
If the Government taps this potential, experts say at least 70 per cent of the country will have electricity.

^^
That's alot of steam in that pic.

Kenya has awarded Mott MacDonald Ltd, a British company the contract to study the viability of building storage and distribution facilities of liquefied natural gas (LNG) in Mombasa.

The study, financed with part of the $153 million Energy Sector Recovery Project funded by the World Bank, seeks to identify Kenya’s potential of LNG for industrial use and power generation.

Liquefied natural gas is expected to be a substitute fuel for some of the existing and planned thermal generation facilities in Mombasa if the conversion is economically justifiable.

Project coordinator Meredith McArthur said the Ministry of Energy has engaged Mott MacDonald to carry out the feasibility study on an LNG re-gasification terminal near Mombasa.

Site location

“The project commenced on November 2, 2009. Phase one covers natural gas demand assessment, site location of LNG terminal, financial and economic evaluation among others,” he said.

Phase two spans environmental and social impact assessment and resettlement action plan, emergency response and disaster management plan, institutional and organisational study.

Mott MacDonald said LNG import terminals are being developed over a wide rage of sizes from less than one million to over 10 million tonnes per annum of gas.

Send-out gas is typically used for end-users like power generation, industrial fuels and feedstock for manufacture of other chemicals. LNG benefits include lower air emissions compared with other fossil fuels.

After several failed attempts, renovation plans for the Mombasa-based Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/mag/InsidePage.php?id=1144030391&cid=457&#) Petroleum Refineries Ltd (KPRL) look more likely, as the drive to position the facility to become the region’s top oil refiner gains currency.
Simmering boardroom wars between the Government and the refinery’s former co-owners — three local oil multinationals — had previously bogged down initiatives to upgrade the facility.
However, change of ownership after the oil firms sold off their 50 per cent stake to Essar Group of India has seen renewed interest to modernise the facility. The latest proposal estimated to cost Sh30 billion could see massive reduction in fuel prices if negotiations to upgrade the facilities by US-based energy-solutions company, Afton Chemical, succeed.
Afton is set to modernise some operational aspects of the 67-year-old refinery and introduce new technology that one of its engineers says will help it achieve operational efficiency.
"This means Kenya will get 20 per cent more refined oil from the same amount of crude it imports annually. Consumers will greatly benefit if oil marketers agree to share with them the cost benefits given that the price of petrol could go down by the same margin," reckons Dr Allen Aradi, Senior Adviser on Fuels, Research and Development at Afton Chemical.
But even as the new owners push through the ambitious project that is informed by the need to position the country as a gateway to the unexploited oil riches of Uganda and Southern Sudan, it is not clear whether this time round its partner — the Government — will be willing to chip in, owing to the tight budgetary position originating from devastating drought and slowing economy, and has since shifted its investment priorities to social issues.
Shell, BP and Chevron (Caltex), who resisted the upgrade, are now out of the picture after offloading their stake to Essar Group.
According to KPRL insiders, the issue of the refinery’s fate has been on the table for a number of years and even prompted a study on its financial viability that was carried out by KBC Process Technology of Britain. Upon examining the various options available for the refinery, including turning it into a storage terminal or closing it down, the study concluded that renovation was the most commercially sound option. The results of the study were released in May 2004.
But despite the conclusions of these two studies and the standing of the law, the multinationals have remained unconvinced on the financial sense of the renovations, instead preferring to explore other options, including turning the refinery into an imports storage terminal for refined oil products.
But this time round, the new owners are not backing down from the modernisation, which they see as more rewarding and the reason for taking up a stake in the old refinery.
But why now? First, global refining capacity is way too low, even in developed countries like the US. Because oil priceshttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/mag/InsidePage.php?id=1144030391&cid=457&#) are still largely a function of supply and demand, sluggish growth in oil production capacity has fallen far behind global demand, especially in the developing world, led by China and India. And new opportunities in Uganda, Southern Sudan and the possibilities of Kenya striking the ‘black gold’ makes it all a worthwhile venture.
Cut in costs
Under the current upgrade plan, modernisation will also see redesigning of operational aspects and maintenance of furnace and heat exchangers, which have a large bearing on the efficiency of the refining process.
Use of the old model has seen the refinery gobble up huge amounts of energy.
Currently, KPRL is the second largest consumer of electricity in Kenya after Bamburi Cement. It pays between Sh20 million and Sh30 million monthly to the Kenya Power and Lighting Company (KPLC).
KPRL’s upgrade also involves equipping the facility with its own 24 megawatts power production unit and eliminate the refinery’s reliance on KPLC. It will pass over the excess power to the national grid to supplement its income.
Another key technological change Afton is proposing is the use of Methylcyclopentadienyl Manganese Tricarbonyl (MMT) — a fuel additive that increases octane levels (ability to resist engine knock) and helps refiners alter fuel composition to meet stringent environmental and fuel quality specifications that are crucial to reducing emissions and energy consumption.
More than 150 refiners in 45 countries in Europe, Africa, Asia, Central and South America, as well as the United States and Canada, have adopted the use of MMT to produce high quality fuels.
KPRL has remained uncharacteristically quiet over the deal.
A few weeks ago, its Managing Director John Mruttu promised to talk to FJ, but later changed his mind. Efforts to reach him have been futile as his phone went unanswered.
Aradi declined to state how much the process would cost, but Essar Group and the Government are expected to invest $400 million (Sh30 billion) in the next three years to upgrade the refinery’s production capacity from 72,000 barrels to one million a day.
Once upgraded, the refinery will increase current production of liquefied petroleum gas from 30,000 tonnes to 120,000 a year.
Aradi confirmed Afton and KPRL were close to a deal and the two had engaged their lawyers.
"I don’t want to say how much it will cost or go into any other specifics because this might unsettle negotiations between our lawyers," explained Aradi.
However, the strongest hint that a deal is in the offing came from industry insiders. National Oil Corporation of Kenya Managing Director Mwendia Nyaga told FJ the refinery’s management informed them during a roundtable meeting earlier in the year that it was carrying out a feasibility study on effects of a modernisation project. "They told us they were commissioning a new feasibility study as findings of the one that was done in 2003/04 had become obsolete," said Mwendia.
Rising demand
The planned upgrade of the refinery has been on the cards for more than a decade and at some point, it was apparent that Libya’s oil giant, Tamoil Africa, had been given the go-ahead to conduct the upgrading of the region’s largest refinery. The upgrade was to improve infrastructure, efficiency and help the refinery meet rising demand from Kenya’s landlocked neighbours. About 85 per cent (714,000 tonnes) of Uganda’s annual petrol and diesel needs pass through Kenya.
Local, foreign banks and other financial institutions had signalled their readiness to fund up to 70 per cent of the project, estimated to cost around $320 million (Sh24 billion) five years ago. The rest of the funding was to be raised through equity.
But Tamoil backed out of the deal after Essar Group edged it out in the battle to acquire majority stake in the refinery.
Essar paid $10 million (Sh750 million) to acquire part of KPRL after a competitive bidding steered by Wood McKenzie Consultants of the UK to edge out Oil Libya and Reliance Industries.
The Indians also paid an additional $2 million (Sh150 million) to the Government to waive its pre-emptive rights. The rights allow an existing shareholder to purchase any additional shares if a chance arose before any other third parties are considered.
Besides technology, Afton is also known for producing chemical components and products that improve the refining process and performance of fuels, resulting in lower fuel use, improved performance and reduced emissions.

http://www.businessdailyafrica.com/Company%20Industry/-/539550/678718/-/u5u860z/-/index.html

I wonder how long do we have to wait for the good news..

I wonder how long do we have to wait for the good news..

^^same here:lol: but the result could be known late next year:bash:

^^same here:lol: but the result could be known late next year:bash:

Im kinda hoping we don't get news at all. At least not now.

I think the best news would be to hear that we have put in place the necessary structures to ensure that the country and not some few individuals benefit. We really don't need another Equitorial Guinea. On the postive side though, North Eastern and Eastern provinces will be opened up.

some of you guys are terrified by Oil.

some of you guys are terrified by Oil.

...And I think we have a reason to be scared.

...And I think we have a reason to be scared.

I don't blame you. i don't know what would happen if we produced more Oil than we do now.

I don't like Oil. I think producing something like 100-250,000/ day is better than more than like a 1 million and more/day .having some production is good. but Oil is so sweet that you can't limit yourself when you have it flowing.

Oil is a curse and a blessing at the same time.

Any country in the world that is scared of an Oil curse is a fragile establishment with pathetic leaders.

The only countries in this category are African countries and a few South American countries.

Any country in the world that is scared of an Oil curse is a fragile establishment with pathetic leaders.

The only countries in this category are African countries and a few South American countries.

I believe a time is coming when we will have better leaders for this country. Until then, if they do find oil, I hope they keep their mouths shut.

I believe a time is coming when we will have better leaders for this country. Until then, if they do find oil, I hope they keep their mouths shut.

amen.

we have struck titanium at the coast and coal in ukambani and there isn't much ado about it. oil won't make a difference.

Any country in the world that is scared of an Oil curse is a fragile establishment with pathetic leaders.

The only countries in this category are African countries and a few South American countries.

They know their leaders very well. so yea, they are right when they are don't trust their leaders in the face of Oil.

I would never trust any Mobututist to rule the country because we all know their mentality .



Its like having lions to be guards for antilopes

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http://www.businessdailyafrica.com/Company%20Industry/-/539550/853236/-/t41exkz/-/index.html

Kenya’s quest to tap additional electricity from Ethiopia to fix an energy supply shortfall has inched closer following a bilateral pact between President Kibaki and Prime Minister Meles Zenawi reached on Tuesday.

The heads of state, both attending the 14th AU Summit in the Ethiopian capital, Addis Ababa, instructed their Energy ministers to speed up inter-connection of the national power grids.

The inter-connection will enable Kenya to access additional electricity to bolster its wavering supply which keeps fluctuating with weather patterns.

Kenya also need addition energy to power its high speed economic growth.

Apart from energy supply, the two leaders also reviewed plans on other infrastructural projects including the envisioned construction of a transport corridor which comprises of a road link, railway line and oil pipeline stretching from the proposed Port of Lamu along the Kenyan coast to Ethiopia and Sudan.

At the turn of the year, President Kibaki announced that Kenya was now ready to begin works on the corridor.

“The corridor is the long term solution to the transport problems between Kenya and Ethiopia. The corridor will facilitate the development of the Northern Kenya as well as the Southern part of Ethiopia,” said a statement by the Presidential Press Service.

Also under way are plans to link the two countries via fibre optic cable.

Ethiopia is the only Eastern African country with sufficient power supply backed by a reserve margin of more than 30 per cent - double the recommended margin of 15 per cent

keep reading http://www.businessdailyafrica.com/Company%20Industry/-/539550/854532/-/t40na5z/-/index.html

Kenya and US firm Anardako Petroleum Corporation have signed an agreement for the exploration of five offshore oil and gas blocks in Lamu basin.

The ministry of Energy said the pact for blocks L5, L 7, L11A, L11B and L12 was signed by the Government to intensify the search for commercial crude oil and gas deposits.

Senior superintending geologist, Mr Hudson Andambi, said Anardako was awarded all the blocks because it has vast expertise in deep-sea exploration.

“Anardako is set to start its work programme,” he said during an oil and gas workshop in Nairobi organised by the East Africa Environment Network and the World Wide Fund for Nature.

Anardako, the largest independent deep-water oil producer in the Gulf of Mexico, also has production or exploration interests in Alaska, Algeria, Brazil, China, Indonesia, Mozambique and West Africa.

Andambi said the Government is committed to promoting Kenya as an exploration frontier and investment destination because 19 out of the 31 wells drilled in Kenya have traces of gas.

China National Offshore Oil Corporation started sinking the $26 million (Sh2 billion) Boghal-1-1 exploratory well in Isiolo North district last October 28, 2009. Drilling proper does not begin until April 2010.

He said various prospective horizons aim to test the existence of oil deposits. Included in the items recovered will be scientifically tested. Boghal will increase Kenya’s drilled density to one well in every 12,500 sq.km of the country’s 400,000 sq km.

Andambi said Bogal-1-1 is being drilled in the Anza basin, where 10 wells have been sunk in the past few months, with the maximum depth being 3,000 metres, and seven of the wells showed traces of oil and gas.

He added that the ministry of Energy will work with NGOs to manage community expectations as it takes about seven years before commercial production of gas starts when a discovery is made.

East Africa Environment Network said civil societies and government agencies doing oil exploration need to work together for greater production.
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The ministry of Energy is seeking consultants to carry out studies for electricity generation from flower farms’ waste and biogas from sewerage systems. The move comes as pressure piles on Kenya to diversify to renewable energy sources as hydro power is prone to drought.

Energy Permanent Secretary, Patrick Nyoike said consultants interested in studies for power generation from flower farms’ waste and biogas need to tender for the projects. “Request for proposal documents may be obtained during working hours upon payment of a non-refundable fee of Sh3,000 in cash or banker’s cheque payable to the Ministry of Energy,” he said.

The documents have to be submitted to the ministry before February 19. Kenya is currently pursuing measures to generate power from municipal solid waste as Nairobi, Mombasa, Kisumu and Nakuru having potential of about 100 megawatts.

The government wants to attain green economy status by 2020. According to United Nations Environment Programme (UNEP), Kenya has great potential for green energy, but the problem has been lack of right policies and commitment to fully harness the resources.

“With the right kinds of public policies and private sector partnerships, Kenya could become the green powerhouse of East Africa, generating enough for its citizens and industries while exporting surplus,” said UNEP’s executive director, Achim Steiner.

Safer Nairobi (SANA) coalition has developed a business and implementation plan of transforming garbage to trade opportunity, especially in Nairobi.

The SANA’s interim chairman, Reginald Okumu, said: “Nairobi has to regain its stature as the preferred tourism and investment destination. The fight against crime cannot be left to Government alone. We have extended partnership to all stakeholders,” he said.

Power generation from solid wastes and recycling of plastics among others are at the core of SANA’s project. SANA, with a war chest of US$5 million, seeks to tap private sector, civil society and Government to make garbage disposal an income earning process.

A study commissioned by UNEP calls for expediting decision-making on the Dandora waste dump site in Nairobi. Tests found high levels of lead and other heavy metals in the blood of area children, who also suffer from respiratory diseases, including chronic bronchitis and asthma.

Dumping at the site is unrestricted. Industrial, agricultural, domestic and medical wastes including used syringes are strewn all over the site. Plastics, rubber and lead paint treated wood, hazardous waste containing poisonous chemicals were found on the dumpsite.

Waste processing facility

Father John Waboosta, a priest working with local communities in slums around the site, said the poor are the world’s best recyclers but this should not put them and their families lives in danger.

“We are advocating for closing and relocation of dumpsite, whereby a controlled and well-managed waste processing facility is set up. It will reduce health and environment impacts but also generate jobs and income for the local community,” he said. Over 2,000 metric tons of waste are deposited daily at the Dandora.

http://www.nation.co.ke/business/news/Canadian%20firm%20to%20begin%20oil%20search%20%20in%20North%20Eastern%20%20/-/1006/882868/-/f8nnh6/-/index.html

we have struck titanium at the coast and coal in ukambani and there isn't much ado about it. oil won't make a difference.

Have you ever heard of a titanium or coal 'curse'?

Guyz I wonder what the minister for energy was trying to get at with his famous statement that after two weeks their will be good news on the oil prospecting front -was it a marketing gimmick to keep the Chinese(CNOOK), Australians(Woodside) & Canadian prospectors on the hoops or otherwise?.

The discovery of “very high concentrations of natural gas” by a Chinese firm doing exploration in northern Kenya has raised hopes that the country could soon strike oil.

Optimistic but guarded reports from Boghal in Merti division of Isiolo district indicated that the China National Off-shore Oil Corporation had discovered the gas after drilling a depth of 4,600 metres.

High concentrations of gas normally indicate the presence of oil.

The news has had top officials in the ministry of Energy excited and could herald the major announcement forecast by Minister Kiraitu Murungi when he announced the start of drilling in October last year.

Ministry’s officials are said to have described the development at the Bhogal well as “very encouraging” and “positive” and plan to establish additional wells in the area.

The National Oil Corporation of Kenya announced last month that with 4456 metres drilled then, there had been no traces of oil or gas and the remaining 1100 metres would determine the success of the project.

“We have one month of waiting and hoping. We expect the depth to be covered by the end of March or mid-April. This means we need to continue crossing our fingers,” said NOCK managing director Mwendia Nyaga.

He said the fact that no hydrocarbons had been found in the upper layers raised hopes of discovery as it indicated the oil or gas had not escaped.

Oil has been discovered in Sudan, Uganda and Tanzania and Kenya is optimistic that it could soon join the league of oil-producing countries.

The Chinese have revived interest in oil exploration in Kenya, which had waned after 2006 when Woodside, an Australian firm, left after fruitless drilling in the Lamu area.

The Bhogal well is the 31st to be drilled in a series of fruitless explorations and the government maintains more wells would be sunk.

“In your lifetime, there could even be the 40th well. We believe there must be oil somewhere in Kenya. As much as easy oil is over, maybe there will be difficult oil in Kenya,” said Mr Nyaga.

Virtual scramble

The prospects of striking oil have resulted in a virtual scramble by international firms to either start drilling or conduct surveys to find out the chances of the existence of oil in parts of Kenya.

Vanoil Energy Ltd, a Canadian oil company, announced on Friday it plans to spend $4.8 million (Sh370 million) on a survey to map potential oil and gas deposits in North Eastern Province.


http://www.nation.co.ke/News/Fresh%20hope%20for%20oil%20discovery%20after%20gas%20find%20/-/1056/883698/-/item/1/-/ecttpxz/-/index.html

Welcome in commodity business guys.:)

I didn't know oil was discovered in Tanzania. Is it recoverable oil or just traces of it?

I didn't know oil was discovered in Tanzania. Is it recoverable oil or just traces of it?

^^they have gas which currently they use for electric generation

Kenya signed a Sh23.4 billion loan with Japan on Tuesday to help develop the geothermal energy sector in east Africa's largest economy, its finance minister said.

"We have signed exchange notes ... for a loan amounting to Sh23.4 billion," Finance Minister Uhuru Kenyatta told reporters.

Energy Minister Kiraitu Murungi said Kenya expected to generate at least 500 megawatts of geothermal energy by 2030.

The loan will help fund the construction of two new units at the Olkaria I geothermal plant near Naivasha, which together will generate an additional 140 MW, Japan said.

Japan also said the Kenya Electricity Generating Company (KenGen), the country's main energy generating firm, planned to expand a separate geothermal station at Olkaria and build new one.

Kenya, which suffers droughts, relies heavily on hydropower, but is increasingly turning to geothermal energy to boost power production.

Businesses say frequent blackouts increase the cost of doing business in Kenya.

Geothermal energy uses the steam generated by underground water heated by the earth's core to spin turbines that in turn generate power.

Although cheap and renewable, the start-up cost for geothermal plants is high compared with other sources like hydropower.

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http://www.nation.co.ke/image/view/-/896922/highRes/151064/-/maxw/600/-/qaa83v/-/PIX1.jpghttp://www.nation.co.ke/business/news/Kenya%20to%20spend%20Sh156%20billion%20on%20physical%20projects/-/1006/896914/-/item/2/-/b8x2ym/-/index.html

Roads sector will be the main beneficiary of the Sh156 billion set aside for physical infrastructure development in the next financial year. Photo /WILLIAM OERI
By JEVANS NYABIAGE
Posted Saturday, April 10 2010 at 17:23


The government is to pump Sh156 billion into physical infrastructure in the 2010/11 financial year.

This is expected to exert more pressure on taxpayers and local equity market as the budget will be highly domestic dependent.

In essence, this means that the government will spend Sh16 billion more in the next financial year. In the current year, the government capped its spending at Sh140 billion, a large chunk of it consumed by roads projects.

The physical infrastructure consists of roads, public works, transport, energy, local government, Nairobi metropolitan development and housing segments of the economy.

According to Budget Outlook Paper 20010/11 – 2012/13 seen by the Sunday Nation, infrastructure expenditure is equivalent to 23.3 per cent of total budget of which Sh43 billion will be recurrent while Sh113 billion development.

The allocation, according to Treasury is expected to go up to 24.2 per cent (Sh185.4 billion) by 2012/13, reflecting the critical role infrastructure plays towards reducing cost of doing business.

Of this amount, roads will take the lions share at Sh83.5 billion, transport Sh8.6 billion, housing Sh4.2 billion, public works Sh6.6 billion and energy Sh35.5 billion.

Local Government will get Sh15.9 billion and Nairobi metropolitan Sh1.8 billion. Infrastructure is one of the key factors that foreign investments go for in making decisions.

Taking for example energy, a number of manufacturing firms have in the recent past been forced to relocate blaming it on high electricity costs.

Even well-established and hitherto dominant multinational companies in Kenya are suddenly finding themselves sailing in turbulent waters due to high energy costs.

The Kenya Association of Manufacturers says that production costs in Kenya are some of the highest globally with the energy factor alone constituting over 40 per cent of the total manufacturing costs.

While Kenyan firms are paying between Sh10 and Sh15 per kilowatt of electricity, their competitors in China and India pay the equivalent of between Sh2.50 and Sh3.80 for the same unit. Therefore, this makes their products much cheaper.

The country has been relying on the unpredictable hydropower generation and the costly thermal energy but according to a new direction, the Ministry of Energy is moving to invest more in renewable energy sources such as geothermal, wind, coal and solar.

In the country’s long term development blue print, The Kenya Vision 2030, infrastructure has been recognised as an enabler of sustained development particularly for the six areas such as tourism, business process outsourcing, wholesale and retail, manufacturing, financial services and agriculture and livestock identified under the economic pillar.

In the Budget Outlook Paper, Finance minister Uhuru Kenyatta says during the 2010/11 financial period, Treasury anticipates revenues at Sh629.2 billion, about 22.4 per cent of GDP.

Overall funded expenditures are projected at Sh821.5 billion or 29.3 per cent of GDP compared to Sh722.4 billion or 30.3 per cent of GDP provided for in 2009/10 budget.

From the document, Mr Kenyatta says total funded recurrent expenditure in 2010/11 amounts to Sh537.3 billion or 19.2 per cent of GDP, compared with Sh507.1 billion or 19.9 per cent of GDP in 2009/10 Budget.

The overall development expenditure amounts to Sh281.2 billion or 10 per cent of GDP, which is Sh20 billion above the provision in 2009/10 Budget.
Domestic financing will constitute 60 per cent of the overall development budget at Sh164.7 billion.

However, over 20 per cent of this expenditure is already committed in the form of Constituency Development Fund (8 per cent) and Counterpart Funding for donor-funded projects (about 10 per cent).

He says since recovery is still fragile, the government will continue with the economic stimulus programme initiated in the 2009/10 financial year.

The development outlays in the next financial year will, therefore, include Sh22 billion earmarked for the economic stimulus programme and another Sh4 billion toward irrigation agriculture.

A drought expenditure of Sh1 billion and civil contingency fund provision of Sh2 billion has been provided for in the Budget for 2010/11.

The overall budget deficit (including grants) in 2010/11 is projected at Sh153.5 billion (equivalent to 5.5 per cent of GDP), down from Sh168.2 billion (6.6 per cent of GDP) in 2009/10.

Mr Kenyatta says the net external financing amounting to Sh51.6 billion (1.8 per cent of GDP) is expected to cover part of this budget deficit and will be limited to concessional loans only in order to contain debt to a sustainable level.

He says that if global financial conditions improve sufficiently, Kenya will consider issuing an international sovereign bond.

Kenya postponed its Sh38 billion ($500 million) eurobond initially set to be issued in the financial year 2008/9 because of the turmoil that gripped key source markets for capital.

But Treasury officials have said that the bond would be issued as soon as circumstances in the global markets improve substantially.

Already advanced markets have shown signs of having recovered although consumphttp://www.skyscrapercity.com/newthread.php?do=newthread&f=2208tion and production is still weak and there has been talk of a double-dip recession - where an economy seems to recover only to slip back into recession.

The balance of about Sh101.9 billion will be financed through domestic borrowing of about Sh95.3 billion which includes local infrastructure bonds of Sh28.6 billion.

This leaves a financing gap of Sh6.6 billion, which will be filled through improved revenue when the macroeconomic forecast is finalised under the 2010 Budget Strategy Paper.
The 2010/11 Budget framework has not factored in privatisation proceeds from planned sale of government shares in various parastatals as these revenues have proved very unpredictable in the recent past.

http://www.nation.co.ke/business/news/Kenya%20to%20spend%20Sh156%20billion%20on%20physical%20projects/-/1006/896914/-/item/2/-/b8x2ym/-/index.html

^^i see they is mistake at the heading mods can you help us and change the heading and remove the unnecessary information, it has to be like this:
Kenya to spend Sh156 billion on physical projects

With the drilling of Bogal-1-1 exploratory oil well in block 9 near Merti in Isiolo North District entering home stretch, anxiety is building up.

Kenyans are waiting for the government to make an announcement as to whether the well has crude oil or gas once China National Offshore Oil Corporation (CNOOC) finishes the work mid this month.

The firm started the $26 million exercise on October 28, 2009 and expects to drill to a depth of 5.5 kilometres.

Chief geologist John Omenge said the well has been sunk to a depth of five kilometres with work expected to end in mid April.

“CNOOC has done a lot of work in block 9 and the Minister for Energy Kiraitu Murungi will make an announcement about the outcome of drilling at an appropriate time as Kenyans have high expectations,” he said.

Oil firm Shell in 1991 got small quantities of good-quality oil in at Loperot in Turkana.

In 2006, Woodside Energy drilled an offshore well in Lamu which triggered misplaced activism among locals. The well was dry. The local community in Lamu in early 2006 demanded that baseline strategic environmental assessment (SEA) studies be conducted before drilling.

According to National Oil Corporation of Kenya (Nock), it will take six months for drill cuttings and cores among items recovered from the well to be tested scientifically to determine presence oil or gas.

“We have to be cautiously optimistic about discovering oil until it actually happens. A commercial discovery will enhance Kenya’s energy security,” said managing director Mwendia Nyaga.

He said two prospective horizons for hydrocarbons targeting 3,000 metres and 5,000 metres of Boghal will give better results by yielding more data to be used in future exploration work.

The well will increase Kenya’s drilled density to one in every 12,500 square kilometres of the country’s 400,000 square kilometres.

Mr Kiraitu said the government wants to manage properly expectations and to give Kenyans maximum benefits of oil and gas resources if a commercial discovery is made.

“Kenya would like to manage oil and gas resources in a manner that promises maximum benefits to modernise physical and social infrastructure,” he said.

According to Petroleum Focus Ltd, a consultancy firm, striking of oil in Kenya will not translate to creation of thousands of jobs because exploration and extraction is highly capital intensive.

“Although oil extraction is highly mechanised, there will be an influx of people to a place where a discovery is made leading to a strain on existing housing and other facilities,” said director George Wachira.
Land use issues are bound to increase in Kenya as the Energy Act does not provide for a mechanism of laying a claim and sharing proceeds if Kenya strikes commercial quantities of oil and gas.

Management and sharing of money from sale of crude oil would be contentious with government, local authorities and communities claiming a larger portion, saddling in exploration companies.

Lands surveyor Ibrahim Mwathane said it is prudent to enter current exploration commitments aware of attendant issues bound to arise if prospecting is successful.

“Land use and environment issues will be in focus as communities, local authorities and government try to maximise benefits,” said the former chairman of Institution of Surveyors of Kenya.

Under the current laws of Kenya, the government retains ownership rights to any land under which lies mineral wealth, a factor that could easily be misunderstood and contested.

Ownership of land by individuals is up to six feet underground. The law states that from that depth, it is the property of the government. Presence of minerals makes land a source of conflicts.

^^ Done

^^ Done

^^thanks :cheers:

Kenya has received a Sh7.5 billion loan from the Export-Import Bank of China to drill geothermal wells for production of 140 megawatts of energy.

In what appears to a shot-in-the-arm for the country to pull itself out of the unpredictable and costly hydropower generation, the money will be used to explore 26 steam production wells at the Olkaria IV geothermal field in Naivasha.

Kenya has geothermal power potential estimated at 7,000 MW and hopes to tap 5,000 MW of it by 2030.

“In consideration of the present energy situation, high fuel prices and over dependence on hydropower production, the Government of Kenya now recognises the need to diversify sourcing of power generation through environmentally friendly sources,” said Finance minister Uhuru Kenyatta on Tuesday during the signing ceremony.

China is one of Kenya’s main bilateral partners with cumulative development assistance of Sh29.45 billion.

Last month, Kenya received a Sh23.4 billion loan from Japan for another 140 MW at its Olkaria I plant.

Earlier in the day, the bank’s vice president Zhu Hongjie held talks with President Kibaki, where it was disclosed that under the Forum for China Africa Co-operation platform, China had enabled Kenya boost the pace of implementing vital development projects.

Port of Lamu

Mr Kibaki said Kenya is determined to develop the Port of Lamu and establish a standard-gauge railway to serve the Northern parts of the country, the Southern Sudan and Ethiopia.

Among ongoing projects financed by China include the Nairobi Eastern and Northern By-Passes at a cost of Sh9.5 billion.

The Kenyatta University to Thika Road that is part of Nairobi-Thika Highway Improvement Project is being implemented at a cost of Sh10.6 billion.

It involves the construction of extra lanes from Kenyatta University to Thika Town intended to improve traffic flow along the route.
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The World Bank will extend a Sh10 billion loan to help improve the Kenya Power and Lighting Company (KPLC) infrastructure.

The facility will also help the electricity distributor curb regular power outages.

KPLC Managing Director Joseph Njoroge told The Standard the loan will enable the firm improve the power distribution system across the country.

Mr Njoroge said the cost of electricity could gradually drop in the coming months following a reduction in the fuel cost charge in the consumers power bills as the country cuts down on thermal generation.

"Fuel cost has been coming down because of more use of hydro-generation and retirement of some thermal emergency power," said Njoroge.

He said the fuel cost charge component on the electricity bill has reduced from Sh7.49 last month to Sh6.72 this month and is expected to continue on a downward trend in the coming months.

Emergency power

This followed the retirement of 150 MW of emergence power due to rising water levels at Seven Folks cascade.

Power generator KenGen is expected to cut thermal generation of emergency power by 60 MW this week.

Njoroge said the loan facility would be used to put up electricity sub-stations in various parts of the country, automate the operations and improve the distributions lines by constructing underground systems.

He said the projects are part of a five-year upgrade programme the firm will undertake at a cost of Sh40 billion ($500 million).

"For many years KPLC did not invest in infrastructure and that is why we have unreliable infrastructure," said Njoroge.

He said KPLC’s growth in profitability, against a decline in KenGen’s earnings has been achieved over a period of time, and is necessary for the firm’s sustainability.

KPLC needs profits to access credit from financers. For instance, one of the WB’s conditions for the loan facility was a requirement that KPLC must contribute 75 per cent.

Last month the company announced a 31 per cent increase in pre-tax profit from Sh2.1 billion to Sh2.8 billion for six months ended December last year.

"We need to make profits to access lender money and ensure as many Kenyans as possible have access to electricity," he stated.

During this period, KPLC bought 1,606 million units of electricity from KenGen compared to 3,295 million units sold.

http://www.businessdailyafrica.com/Company%20Industry/Power%20line%20to%20pave%20way%20for%20investment%20in%20green%20energy/-/539550/916538/-/54csepz/-/index.html

The discovery of what has been termed “very high concentrations of natural gas” by a Chinese firm drilling for oil in northern Kenya has raised hopes that the country could soon strike oil and save on a product that accounts for nearly a fifth of the import bill.

Energy minister Kiraitu Murungi said China National Off-shore Oil Corporation (CNOOC) had discovered gas in Boghal well in Merti division of Isiolo district after drilling 5,085 metres.

The well is within Block 9 in the Anza Basin of northern Kenya.

“There are strong signs of a gas discovery. Give us one month to do the tests to ascertain whether there are commercial quantities,” Mr Murungi told a regional energy conference that opened in Nairobi on Tuesday.

CNOOC, which is working with other investors with rights to the Isiolo bloc—including Africa Oil, Lion Energy and China Petroleum Corporation, will conduct further tests and have ordered some specialised test equipment to survey the quantities.

“CNOOC and its partners are in the process of carrying out further tests to ascertain whether the identified gas in the four zones is available in commercial quantities. Kenyans are praying for a commercial discovery,” Mr Murungi told potential investors.

Industry experts say an early discovery of gas would provide Kenya with a ready market for the product within the economy and that it would require less capital and time than oil to exploit.

The high concentrations of gas normally indicate the presence of oil.

A hydrocarbon discovery can be either oil or natural gas, and in some cases, can be oil accompanied by natural gas.

The Chinese began drilling last October and have revived interest in oil exploration in Kenya, which had waned after 2006 when Woodside, an Australian firm, left after fruitless drilling in the Lamu area.

The Bhogal well is the 32nd to be drilled in a series of fruitless explorations and the government maintains more wells would be sunk.

State owned National Oil Corporation (Nock) says there are re 22 leased blocks, with 13 different companies operating on some of them. Drilling is about to start.

Among them is in the acquisition of 900 square kilometres of three dimensional data by Origin Energy, which has already completed 3D seismic data in Block L8, Lamu Basin.

“The data is currently being interpreted to identify drillable sites on Mbawa prospect, after which drilling will begin,” said Mr Murungi.

Andarko—the second largest US independent natural gas producer has rights to five blocks across the four basinjs of the country.
Early this year, the US firm found found gas in deep water offshore in Rovuma basin in Mozambique, raising hopes that due to similarities in geology of Kenya’s deep water acreage to that of Mozambique, more exciting discoveries were under way should the US firm step up drilling in Kenya’s Coast.

Industry expert George Wachira said early discovery of gas would provide Kenya with ready market for the product.
http://www.businessdailyafrica.com/Company%20Industry/Natural%20gas%20find%20raises%20hope%20of%20Kenya%20striking%20oil/-/539550/916574/-/item/1/-/nrhpbg/-/index.html

^^how is the price of natural gas?

http://www.nation.co.ke/business/news/New%20rules%20to%20guide%20use%20of%20cash%20from%20natural%20gas/-/1006/916184/-/11fqorvz/-/index.html

Kenyans will in another two months find out whether natural gashttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) deposits found in North Eastern Province are commercially viable.
Energy Ministry Kiraitu Murungi said a firm that has been prospecting for oil in the region had discovered natural gas amounts in several layers in a well sunk in Isiolo.
"Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) found no oil but showed strong indications of gas," Mr Kiraitu told Reuters Tuesday.
He said the firm will be undertaking tests to establish whether the amounts found can be exploited on a commercial scale.
The firm, China National Offshore Oil Corporation (CNOOC), will commence the tests in June and state whether Kenya has gas by July.
"CNOOC is in the process of carrying out drill stem test to ascertain whether the gas identified in four zones in one of the wells is available in commercial quantities. The tests will take one month and are scheduled to begin next month," said Kiraitu.
CNOOC has sunk one of the deepest wells in Kenya’s exploration history in Isiolo, going over five kilometres deep but has not found oil.
Exploration Bids
Despite years of unsuccessful oil exploration, the minister invited more bids from international firms in the search for the commodity saying a substantial number of the blocks set aside for exploration are yet to be leased out.
The Government has earmarked Lamu in Coast Province and Anza, Mandera and the Tertiary Rift in northern Kenya — which have a combined surface area of 400, 000 square kilometres and subdivided in 38 exploration blocks — as among the areas with high potential for oil.
"Currently, 24 blocks are under production sharing contracts operated by 12 international oil firms," he said.

Kenyans will in another two months find out whether natural gashttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) deposits found in North Eastern Province are commercially viable.
Energy Ministry Kiraitu Murungi said a firm that has been prospecting for oil in the region had discovered natural gas amounts in several layers in a well sunk in Isiolo.
"Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) found no oil but showed strong indications of gas," Mr Kiraitu told Reuters Tuesday.
He said the firm will be undertaking tests to establish whether the amounts found can be exploited on a commercial scale.
The firm, China National Offshore Oil Corporation (CNOOC), will commence the tests in June and state whether Kenya has gas by July.
"CNOOC is in the process of carrying out drill stem test to ascertain whether the gas identified in four zones in one of the wells is available in commercial quantities. The tests will take one month and are scheduled to begin next month," said Kiraitu.
CNOOC has sunk one of the deepest wells in Kenya’s exploration history in Isiolo, going over five kilometres deep but has not found oil.
Exploration Bids
Despite years of unsuccessful oil exploration, the minister invited more bids from international firms in the search for the commodity saying a substantial number of the blocks set aside for exploration are yet to be leased out.
The Government has earmarked Lamu in Coast Province and Anza, Mandera and the Tertiary Rift in northern Kenya — which have a combined surface area of 400, 000 square kilometres and subdivided in 38 exploration blocks — as among the areas with high potential for oil.
"Currently, 24 blocks are under production sharing contracts operated by 12 international oil firms," he said.

Good but Isiolo is in eastern province, alongside marsabit and moyale.

News, photos and discussions on Kenyan Energy be it in oil, gas, renewable, nuclear power and the like :okay:

KENYAN POWER COMPANY TO RAISE LEVEL OF DAM FOLLOWING HEAVY RAIN
NAIROBI, May 13 (NNN-KBC) --State-owned Kenya Electricity Generating Company (Kengen) plans to raise the wall at the Masinga Dam in Eastern Province by an extra 1.5 metres in a bid to store more water following the heavy rains pounding the Aberdares and Mt Kenya catchment areas there.

Kengen Managing Director Eddy Njoroge said Wednesday that the company would use funds from last year's bond listing to put up the wall to give the dam an extra 25 per cent holding capacity.

Once the raising of the height of the wall, cost some 1.1 billion shillings, was completed, the dam's storage capacity would go up by an extra 400 million litres.

Currently, the company has to mitigate flooding resulting from overflow by over-utilizing waters of the Kiambere, the lowest dam downstream.

Water levels at the dam have passed 1,500 metres and over the past few months, water inflow to Masinga had increased from around five cubic metres per second (m3/s) in August last year to 5,000 m3/s this month.

The current rains pounding various parts of the country have seen many rivers burst their banks leading to flooding. Weather experts and relief workers have alerted people living around the dams which are almost filling up to vacate.

On Tuesday, Kenya Power & Lighting Company Ltd (KPLC) announced a 40 per cent reduction in the fuel cost charge from 7.90 shillings per kilowatt-hour to 4.98 shillings from April. The company reduced fuel cost charges from Ksh 6.72 in April to 4.98 shillings in May.

The charges had risen to a massive Ksh 7.90 in November 2009 when more than 50 per cent of power was fuel generated, following an acute drought being experienced in the country.

Njoroge said the fuel cost charges had dropped as power generation at the dams on the Tana River increased following heavy rains being experienced in the central region of the country.http://namnewsnetwork.org/v2/read.php?id=120113

Good but Isiolo is in eastern province, alongside marsabit and moyale.

^^remember history and geography are not their best subjects in Kenya :lol::lol::lol: same like Americans :)

http://www.theeastafrican.co.ke/news/-/2558/918934/-/pf3ma9z/-/index.html

The government should open up their minds about this mentality that Oil can only be explored in a 'desert dry area' look at the delta regions of Nigeria, Uganda's L. Albert areas where oil find is concenrated; these are by no means your typical dry areas, they need to start moving to all potential regions and provinces and explore for the same.

Triumph Power Generating Company has said that it will set up an 80 megawatts electricity plant in Athi River, Machakos District.

It joins a growing number of local companies that are turning to power production for their own use and for selling to the Kenya Power and Lighting Company. The investments are informed by the high energy cost.

“The generating station and associated works will be situated on land reference number 18474/216 situated in the Athi River Export Processing Zone,” said the firm in a notice on Thursday.

Triumph said it will apply for a licence from the Energy Regulatory Commission to supply bulk electricity to KPLC after 30 days pursuant to section 27 of Energy Act.

The power supplier was in June 2009 mandated by the government to invite investors to express interest in developing 60 to 80 MW heavy fuel oil plants in Athi River about 25 kilometres away from Nairobi’s city centre.

KPLC said the three medium speed power plants were developed under 20 to 25 years build operate and own arrangements, with fuel storage facility on site and interconnection facility to the national grid.

Unilever Tea Kenya Ltd is set to lodge an application on June 9 for a licence for generation, transmission and distribution of electricity within its estates.

Put up plant

Managing director Eric De-Foresta said the power generated at a new hydro plant to be constructed at Tagabi will be for own use in Kerich, Kipkellion, Bureti, Bomet and Sotik districts.

Tower Power Ltd, a company associated with Kaluworks Ltd, subject to grant of licence, will also put up a plant to produce electricity around Mariakani for own use and sell the surplus to KPLC.

Commercial director, K. V. Bhatt said the firm will lodge its application for a licence by June 8, 2010 to put up 100 MW plant to be achieved by deploying multiple energy sources.

Companies Target Rural Businesses With Portable Solar Panels
The slow pace of rural electrification, rising oil prices, and need for energy security has opened a niche for solar energy solutions in Kenya.

Manufacturers and importers have noted the business opportunity and are coming up with products that they say will fill the gap.

They are focusing on affordability, the green agenda, and renewability of power sources.

ToughStuff has just entered the market with a solar product for lighting, charging phones and powering of small appliances targeting the rural population, who have remained in darkness even as authorities cut costs for supplying power.

Because Kenya relies on hydro-generation of power, electricity costs have continued to climb, especially when the alternative is thermal sources.

Prohibitive prices

ToughStuff has introduced a Sh650 solar power product whose full kit - a solar panel, LED lamp, a rechargeable battery power pack - will retail at Sh2,500.

The firm says its offer will save rural households up to Sh20,000 a month in energy costs.

"The product is durable as it is suitable for a demanding environment," said Andrew Tanswell, the CEO of ToughStuff.

Mr Tanswell said the slow uptake of solar power components in the rural areas was occasioned by "prohibitive prices and the fragility of the kits in the market."

Statistics from the Petroleum Institute of East Africa, a petroleum consultancy based in Nairobi, show average annual sales of kerosene over the last eight years stands at about 250,000 cubic metres (worth Sh15 billion).

The bulk of this, it says, is used for lighting homes and small businesses.

Kenya has set a deadline of 2017 to go green in power generation and is setting up to invest in renewable sources to replace the expensive and environmentally damaging charcoal, firewood, kerosene and battery.

Rogue traders

A recent study by the International Finance Corporation (IFC) estimates the national market for solar lighting products at over one million units per year.

The global bottom-of-the-pyramid energy market is estimated to be worth $433 billion, with low-income households spending an average of seven per cent of their earnings on the budget.

ToughStuff is negotiating with local micro-finance institutions to establish direct partnerships to extend loan facilities to the low-end entrepreneurs to invest in the solar product as retailers, wholesalers and technicians.

The company recently won the energy and environment award, for its solar kit that has provided affordable energy in Madagascar.

Its solar kit charges phones, powers radios, and provides lighting for up to six hours when charged.

The company is partnering with Chloride Exide to run countrywide distribution.

However, the companies seeking to enter the Kenyan market and exploit a particular niche will have to grapple with the perennial problem of counterfeits that flood the market.

Industrialists have raised the alarm over the influx of substandard goods that promote unfair competition and nibble at the market of businesses making or importing genuine products.

The dent created by the unscrupulous importers, who make fake copies of genuine products, is estimated at billions of shillings every year.

However, there is a ray of hope with the expectation that the anti-counterfeit agency will rein in rogue traders.

The Kenya National Bureau of Statistics' Well Being in Kenya report of June 2008 shows that most Kenyans use kerosene to light their homes and cook.

Only 5.2 per cent of the poor use electricity, compared to 20 per cent of middle-class, majority of whom sty in the urban areas.

Identifying how to introduce low-cost lighting solutions has become a major industry focus over the last few months.

This month, the IFC and World Bank will host, in Nairobi, the second International Business Conference and Trade Fair on lighting and energy access in Africa.

The organisations seek to promote affordable and high quality off-grid lighting products and services among low-income group.http://allafrica.com/stories/201005270111.html

Kebs Sets Up New Code for Gas Transporters
Nairobi — The Kenya Bureau of Standards (Kebs) has developed a new code of fabrication, inspection and testing of road tankers for transporting liquefied petroleum gas (LPG).

The organisation's petroleum technical committee aims to enhance safety by laying down these procedures.

"It outlines vehicle accessories, inspection and testing as well as observing of environment health and safety rules to avert disasters," said committee chairman engineer James Mwangi.

He said it covers use of high quality materials, tank interior and exterior, earthing, LPG equipment such as hoses, valves and gauges, markings, inspection and certification thus putting in place a structured mechanism for investors.

Designated parking

This comes when players are pushing local authorities to create designated parking facilities and rid residential areas of tankers to minimise fire risks and enhance safety.

The code can be used by the government to check compliance with transporters having to ensure vehicles have inspection reports and valid clearance certificates from Nairobi City Council chief fire officer.

Gas tanker drivers must also undergo comprehensive theory and practical training in defensive driving as well as product handling in accordance with section 80 (4) of Energy Act of 2006.

Mr Mwangi said the entire process of inspecting and testing has to be done by a competent person approved by Energy Regulatory Commission and a suitable record kept.

Clear markings

The vehicles must have clear markings with serial number stamped on a flameproof data plate on a suitable part of the tank with manufacturers name, trade name or trade mark.

The scope covers serial number of tank, date of manufacture, date of test, design pressure, tank capacity and maximum liquid load among others.

"Transporters dealing with oil firms are required to adhere to high standards, integrity and accountability. It calls for embracing driver training as part of contractual obligation by the parties," he said.http://allafrica.com/stories/201005310136.html

^^excellent contribution hakz:banana::cheers:

^^my pleasure :cheers:

Nice thread hakz2007.Some pictures.:)

Sondu Miriu Hydro Electric Power Project

Client: KONOIKE – TAISEI JV.

Engineer: Nippon Koei

Completion Date: Complete

Value: Ksh 1.26 Billion (US$ 17.3 Million)

Construction of 2x30MW Sondu-Miriu Hydro Electric Power Station including the construction of 11 Kms long permanent access road in different .
Opencut excavation and concrete works for the steel penstock line (appr. 1,180m long)

Opencut excavation for and construction of powerhouse building of reinforced concrete (40m length, 24.5m width and 32.1m in height)

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Kipevu I - Diesel Power Station - Kipevu Mombasa

Employer: Mitsubishi Heavy Industry & Mitsubishi Corporation, Japan
Consulting Engineer: Mott Ewbank Preece, U.K.
Client: Kenya Electricity Generation Co. Ltd, (KENGEN), Kenya.
Value: US$ 14.8 Million
Construction and erection of a 6 X 12 MW thermal power station
H Young & Co were the main sub-contractors for the construction of the station. Project scope included

Civil and building works including a 3 storied power station house and office buildings.
158,000m3 of excavations, access roads including 24,000m2 of Heavy Duty Concrete Block paving works.
Supply and installation of structural steel works including OH cranes, supply and installation of Heavy Duty Oil (HDO) tanks of 2 x 9,000m3 capacity and 8 tanks of a total capacity of 24,000m3 for various media including fire water, raw water, potable water, oil and lubrication oils.
Sewerage and waste water disposal system.

http://i151.photobucket.com/albums/s135/kenyanforever/Structurals18_clip_image006.jpghttp://i151.photobucket.com/albums/s135/kenyanforever/Structurals18_clip_image004.jpg

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Niice pics, i love seeing Energy stuff being built.

Thats one impressive Diesel Station. Only $15 million ? thats it for that big station?

Kenya Bets Big On Renewable Energy
As the African nation continues to expand and the need for energy grows, geothermal, wind and other forms of renewable energy just might fit the bill.
http://www.renewableenergyworld.com/assets/images/story/2010/6/16/1332-kenya-bets-big-on-renewable-energy.jpg;jsessionid=30B469CE2BD50612E6C898718D758A3A

Kenya – Take a booming economy that has a growing appetite for energy and add to it a crippled energy supply line that is forever at the mercy of the elements and frequent power cuts and you will get a need for more renewable energy. Faced with a myriad of energy problems and challenges that risk the economic expansion of this East African nation, renewable energy is the buzzword that has electrified the energy sector in Kenya.

Kenya currently has an installed energy capacity of about 1,300 MW against a demand of about 1,100 MW with more than 60 percent of energy generated coming from hydro. This has over the last few years proved unreliable as the pangs of climate change hit closer home and the rain patterns have turned erratic.

Being a regional economic powerhouse, Kenya has been racing against time to seek out new sources of energy to power its growing economic might in the region. Renewable energy is quickly proving to be one of the better options due to its lower costs and the availability of the natural resources needed for renewable power.

As a result of this, the Kenyan government has recently re-evaluated its power policies and is now encouraging the use of renewable energy for both industrial and domestic use. And to help spur its development, the Kenyan government is not only offering incentives to companies to invest in renewable energy production, but it is also leading the way in a planned $8 billion capital injection into renewable energy generation.

Geothermal Power

According to Eddie Njoroge, the CEO of the Kenya Electricity Generating Company (KenGen), Kenya has the potential to install more than 2,000 MW of renewable electricity over the next three years under the green energy initiative championed by the government. According to Njoroge, Kenya has the potential to install about 800 MW of wind power and 500 MW of geothermal power over the next two to three years. Other identified renewable energy sources include biomass, hydro and municipal solid waste.

The government, says the Ministry of Energy Permanent Secretary Patrick Nyoike has already singled out locations in Olkaria (about 100km west of Nairobi) and Menengai, (outside the city of Nakuru) as suitable areas for the development of geothermal power. Olkaria currently hosts three geothermal power plants. Once new geothermal power plants at Olkaria and Menengai are commissioned, notes Nyoike, geothermal power capacity will increase by 490 MW. Kenya is one of the few African countries that have successfully tapped geothermal energy.

Says Nyoike: “Geothermal power shows great promise in Kenya, yet it has not been fully exploited as we are only producing about 200 MW against a potential of 7,000 MW [over the long term].”

According to Dr. Silas Simiyu, the CEO of government-founded Geothermal Development Company (GDC); there are at least 14 high potential sites in the expansive Rift Valley Province that have been identified for geothermal power production. This, he says, will push down the cost of power as the GDC will sell power to the Kenya Power and Lighting Company (KPLC), the firm that retails power to consumers, at a reduced price of between US $0.04 or 0.05 per kWh.

To get the ball rolling, the Kenyan government has allocated about Kenya Shillings (Kes.) 11 billion [about US $137.5 million] in fiscal year 2010/2011 towards the development of geothermal power in the country so as to boost installed capacity to 500 MW in three years’ time.

Wind Power

The government is also betting big on wind power. Already KenGen has set up a 5.1-MW wind farm in Ngong on the southern outskirts of Nairobi, which was commissioned last September. The company has plans to erect a second 10-MW wind farm in the area, estimated to cost (Kes) 2 billion [about US $25 million].

The government is also encouraging private companies to set up wind farms. The African Development Bank pumped more than $400 million into what is set to be the biggest wind farm in Africa. The 300-MW wind farm will be constructed in the northern frontier district of Turkana under the Lake Turkana Wind Power Company (LTWP) and is set to go online by July 2012.

According to Carlo van Wageningen the LTWP Chairman, the company intends to erect 360 wind turbines in northern Kenya each with a capacity of 850 kW. Kenya, notes van Wageningen, possesses a huge potential to generate even more wind power.

LTWP is a Dutch consortium that has leased about 70,000 hectares in Turkana to develop the wind farm. According to van Wageningen, the Lake Turkana region has consistent strong winds that blow year round between the Kenyan and Ethiopian Highlands at speeds exceeding 11 meters per second, something akin to “proven reserves” in the oil industry.

Says he: “We have reason to believe that this region is the best for wind power generation in the world.”

Once commissioned, LTWP will construct a 300-mile transmission line to connect the wind farm to the national grid. There are plans to expand the wind farm to increase generation capacity by 2,700 MW. According to the Nairobi-based United Nations Environment Program (UNEP), Kenya has the potential for up to 3,000 MW of wind, especially in the wind-rich northern frontier districts.

Besides Kenya, only Morocco and Egypt have successfully tapped wind energy in Africa.

Other Sources of Green Energy

The government is also looking at other technologies to help turn Kenya’s energy sector fully green. One of these technologies includes transforming the millions of tones of solid waste generated in the country into energy. While speaking at the recent Green Energy Conference held in Nairobi, Kiraitu Murungi, Minister of Energy said that the massive solid waste generated every day in the four major metro cities of Nairobi, Mombasa, Kisumu and Nakuru could power a 100-MW plant.

Private companies are also being encouraged by the Kenyan government to turn to green energy production for their industrial productions. Mumias Sugar Company (MSC), the largest sugar milling company in Kenya, is perhaps the best example of industrial green energy production in Kenya. The company has installed a 34-MW electricity plant that is fueled with byproducts from its sugar milling processes. It uses a portion of the energy it generates in its industrial operations and sells the rest to the national grid.

According to Evans Kidero, the CEO of MSC, the company produces electricity from the sugarcane byproduct bagasse. The sugar-belt region in western Kenya, says Kidero, possesses a huge potential of co-generation as 100 tonnes of crushed sugarcane produces more than 17 tonnes of bagasse. Moreover, notes Kidero, the cost of co-generation from sugarcane milling is less than half the cost of generating electricity from imported petroleum and natural gas.

Energy experts agree that the rapid expansion of the Kenyan economy will require more energy to power its growth. The Ministry of Energy estimates that Kenya will need an installed capacity of about 2000 MW to meet peak demand in the next four years. This is expected to more than double to 4,000 MW by the 2020. And by 2030 this East African economy seeks to be a middle-income economic giant that is powered by green energy.http://www.renewableenergyworld.com/rea/news/article/2010/06/kenya-bets-big-on-renewable-energy?cmpid=rss

^^ I have been saying that all the time.Geothermal is the way forward.Its cheaper to install than wind power for starters.Nice article hakzz.:cheers:

Geothermal power: Kenya's potential and prospects

fTQEyVqaDGU

Geothermal power to provide 2200mw by 2020

f-_94KFo5ag

News, photos and discussions on Korean Energy be it in oil, gas, renewable, nuclear power and the like :okay:

I think yu meant to say "Kenyan" energy. Otherwise, nice thread.

^^I stand corrected.

Thanks :okay:

FARMERS TO GROW MAIZE FOR ENERGY ONLY, NOT FOR FOOD
NAIROBI, June 20 (NNN-ANGOP):Farmers in Eastern province and parts of Coast are to be forced to grow maize for energy production only, following a report that aflatoxin contamination is generic in the areas.

Prof Hiroyuki Hino, an economic adviser to Prime Minister Raila Odinga, has recommended that maize and sorghum grown in the provinces be used for ethanol and biodiesel production, and not for human consumption.

In a memo to Odinga, Prof Hino says most crops in the two regions, including sorghum, wheat, peanuts, soya beans, sunflower, spices, and coconut are prone to aflatoxin.

Prof Hino's recommendation is based on a report released recently by the World Food Programme, the World Health Organisation and US Centres for Disease Control and Prevention, which confirmed that aflatoxin contamination in maize is a health hazard in the two provinces.

The report affirms that the contamination originates from the soil and is caused by humidity and high temperatures. It seems to contradict the government's argument that only improper post-harvest handling causes the contamination.

The ministry of Agriculture early this month said that of the three million bags produced in the regions during the short-rains season, two-thirds are contaminated. The government is now seeking to buy the maize from farmers at a low price in order to destroy it.

According to the report, titled Impacts of Aflatoxins on Health and Nutrition, Kenya has had cases of contamination in 1982, 2001, 2004, 2005, 2006, 2009 and this year.

The major outbreak occurred in 2004 when 317 cases of aflatoxin poisoning were reported, with 125 deaths. This was the biggest number of deaths registered worldwide since 1974, when 106 people died in western India.

In September, last year, WHO country director Burkard Oberle wrote to both Agriculture and Public Health ministers, asking them to ensure the communities at the Bura irrigation scheme do not eat highly aflatoxin-contaminated maize.http://namnewsnetwork.org/v2/read.php?id=124278

Nairobi — The East African Community member states have been urged to integrate their energy infrastructure to cut on costs and improve efficiency.

Applauding the start of common market protocol on July 1, French Development Agency director Jean-Pierre Marcelli said Kenya could ease power shortages and drop energy costs by investing in geothermal power and harnessing energy-trading potential with EAC members.
Likewise, Uganda which mainly relies on hydro-power could benefit from Kenya's huge geothermal potential when water levels in its dams fall.

Mr Marcelli said the AFD has provided Sh5.6 billion for investments in geo-thermal power, including drilling wells, which are costly to finance. The AFD is also committing billions of shillings to Olkaria I and Olkaria IV power plants.

"You have an astonishing, unique geothermal power, potentially," he said during a briefing at the Nation Media Group offices in Nairobi Tuesday.

He said that his agency plans to channel Sh2 billion through local banks as credit to small scale investors on energy to upgrade their equipment."We want to start with Kenya before rolling out the programme throughout East Africa," Mr Marcelli said.

The investments would mean Kenya would rely less on hydroelectric power, which is not a reliable energy source because droughts can drastically cripple power production.
Currently, power costs more in Kenya than in neighbouring countries, discouraging investors.

Goods from Common Market for Eastern and Southern Africa (COMESA) countries have also been enjoying an advantage in the market due to low costs of production facilitated by low energy costs.

Mr Marcelli was happy that the EAC countries could capitalise on common market to swap energy.

"Integration, sharing your production capacity, is a good way to be competitive together," Mr Marcelli said.

Energy stability

Tanzania, for instance has huge natural gas potential.

Marcelli's comments echo those of other officials, both in government and the private sector, that Kenya needs energy stability.

Once Kenya has a steady energy supply, it can begin to wring efficiencies out of the power system. Energy efficiency, Mr Marcelli said, will also be an important step toward protecting the environment and also attracting investment.
"It's about producing the same, or even more, with less power," he said.

A steady energy supply is part of Kenya's Vision 2030 campaign, which is supposed to catapult Kenya into the ranks of other middle-level economies within 20 years.

Mr Marcelli, whose tenure in the country has ended and would soon be leaving for Egypt, said his organisation had more than tripled its loans to Kenya in the past four years.

On conservation, he said that his organisation would partner with the Green Belt Movement to plant trees on about 3,000 hectares of land in Marsabit.

http://allafrica.com/stories/201007130521.html

http://www.businessdailyafrica.com/Company%20Industry/France%20grants%20Kenya%20Sh2bn%20for%20power%20green%20energy/-/539550/957396/-/ubu9hnz/-/index.html

The City Council of Nairobi has announced a Sh3 billion plan to centralise garbage collection as it seeks to reduce the city’s massive load of refuse and generate cheaper electricity and cooking gas from the waste.
The project—which is set for completion in 2015, is sponsored by the Japanese government and will see the creation of a single garbage collection point at Ruai and the closure of 74 dumping sites spread across the city, says Godfrey Majiwa, the city mayor.

The single waste collection point is aimed at attracting investors who have been discouraged from using garbage for income generation due to lack of volumes.

It is estimated that Nairobi’s daily garbage and sewage output is about 2,000 tonnes, but only 33 per cent is collected.

“The purpose of the landfill disposal is to stabilise solid waste and to make it hygienic through proper dumping of waste and use of natural metabolic function,” said Mr Masakazu Maeda of Japan International Corporation Agency (JICA).

He said the process would help to set up a multi -million shilling waste management business in Kenya.Garbage is a major raw material for making fertiliser and plastic products and decomposes to produce highly flammable methane gas that can be tapped and used to generate electricity or used as cooking gas.

A thriving waste management industry would also mean that collection companies will offer free services to households and recover their cost when they sell the garbage to the processors.
Durban City in South Africa uses garbage to produce electricity, an income generator that also helps to transform lives by increasing access to power.

Frost & Sullivan, a South Africa-based research group, has forecast that waste management projects are becoming major business opportunities in Kenya, Uganda and Tanzania where managing garbage is still a problem
East African solid waste management market earned Sh2.4 billion in 2008 with the bulk of its coming from the recycling industry and private solid waste collectors.

But analysts reckon the country could earn more money from the manufacture of fertilisers and energy generation as rapid urbanisation increase waste generation.

Jica estimates that the city will generate 2, 400 tonnes of waste in 2015 and 4, 000 tonnes in 2030.
The City Council is also eyeing cash through carbon credits by helping to tap gases that are harmful to the ozone layer and which are contributing to the global warning and climate change.
Methane is the principal by-product of garbage decomposition and is a lethal gas to the ozone layer.

Experts say it is 21 times more lethal to the ozone layer than carbon dioxide.

Companies like Mumias Sugar Company and KenGen are some of those lined up to soon earn from climate change investment projects

Besides reducing the city’s massive load of garbage, this project could also help Kenya realise its desire to reduce its heavy dependence on rain fed hydro-power and the more expensive thermal power.

A drop in hydro-power’s contribution to the national grid has last year saw electricity bills rise about 60 per cent, driven by fuel cost charges — a varying item on the bills that is linked to the amount of power on the national grid generated from thermal sources.

The fuel cost charges had risen from Sh3.92 in March, 2009 to Sh7.90 in November but has since come down to Sh3.18 helped by the heavy rains in the first half of the year.

The move to generate energy from garbage will also help inject additional power to the national grid at a time when the country is running short of power.

Kenya is seeking to add 800 megawatts of electricity to the national grid in the next five years at a cost of Sh111 billion, but the government and power generator KenGen say it can only meet part of cost with balance expected to be met by private investors.
If the plan to tap into garbage for power generation is successful, it will make Nairobi Africa’s second city— after Durban — to generate electricity from waste
Durban generates 6MW of electricity from sewage and the same amount from garbage.

The technology is widely used in Europe, especially in Italy, where most of the garbage is used to generate electricity.
http://www.businessdailyafrica.com/Company%20Industry/City%20Hall%20eyes%20power%20generation%20in%20garbage%20plan/-/539550/960344/-/item/0/-/r7gafh/-/index.html

:cheers1: Good news, but I can't help but wonder if this project being funded by the Japanese govt is a move to get Kenya to support its whaling in Antarctica. :lol:

Does any-one know the name of the rig used to dril the deepest well in Kenya by CNOOC?

oil does not guarantee wealth....Kenya has the best manpower in Africa and we are more than capable to achieve high level growth and sustained development.....oil producing countries economies are not all that in many areas.....I agree oil, gas or even diamonds will help.....but lets quit on spending too much time and energy HOPING. A BIRD AT HAND IS WORTH TWO IN THE BUSH.

Kipevu power plant 60% complete.

LCRkGAX5Ac0

@ Kabul..You are right.Oil/Gas doesnt guarantee wealth.Kenya has other potentials which if exploited well will bring more than what oil can bring here...talk of expert man power,agriculture,her strategic position in EA to drive the region's economy,tourism...we have leading companies like KCB,Equity bank etc which shows that we can do alot more than just having oil.

oil does not guarantee wealth....Kenya has the best manpower in Africa and we are more than capable to achieve high level growth and sustained development.....oil producing countries economies are not all that in many areas.....I agree oil, gas or even diamonds will help.....but lets quit on spending too much time and energy HOPING.

Oil makes money very fast. In facts nothing makes more money and faster than Oil. Diamond is if you have a small like like Botswana or Namibia (barely 2 million people in the whole country) and it also depends on how much diamonds you produce. Most of which goes to politicians anyways.

Oil can develop your country very fast. Or it can turn into a curse (massive corruption you ever seen and conflicts as we have seen), but it all comes with the kinds of leaders you have.

But indeed, true wealth of a nation is it people. Educated population, resilient , disciplined population is what makes nations be what they are.

Oil makes money very fast. In facts nothing makes more money and faster than Oil. Diamond is if you have a small like like Botswana or Namibia (barely 2 million people in the whole country) and it also depends on how much diamonds you produce. Most of which goes to politicians anyways.

Oil can develop your country very fast. Or it can turn into a curse (massive corruption you ever seen and conflicts as we have seen), but it all comes with the kinds of leaders you have.

But indeed, true wealth of a nation is it people. Educated population, resilient , disciplined population is what makes nations be what they are.

^^hapo umeseme mwanamume :)

http://www.youtube.com/user/ABNDigital#p/u/9/5qvmfBcklnQ

Kipevu I - Diesel Power Station - Kipevu Mombasa

Employer: Mitsubishi Heavy Industry & Mitsubishi Corporation, Japan
Consulting Engineer: Mott Ewbank Preece, U.K.
Client: Kenya Electricity Generation Co. Ltd, (KENGEN), Kenya.
Value: US$ 14.8 Million
Construction and erection of a 6 X 12 MW thermal power station
H Young & Co were the main sub-contractors for the construction of the station. Project scope included

Civil and building works including a 3 storied power station house and office buildings.
158,000m3 of excavations, access roads including 24,000m2 of Heavy Duty Concrete Block paving works.
Supply and installation of structural steel works including OH cranes, supply and installation of Heavy Duty Oil (HDO) tanks of 2 x 9,000m3 capacity and 8 tanks of a total capacity of 24,000m3 for various media including fire water, raw water, potable water, oil and lubrication oils.
Sewerage and waste water disposal system.

http://i151.photobucket.com/albums/s135/kenyanforever/Structurals18_clip_image006.jpghttp://i151.photobucket.com/albums/s135/kenyanforever/Structurals18_clip_image004.jpg

http://i151.photobucket.com/albums/s135/kenyanforever/Structurals18_clip_image002_0000.jpghttp://i151.photobucket.com/albums/s135/kenyanforever/Structurals18_clip_image002.jpg

I am pretty sure that the total cost for this project (Sondu Miriu Hydro) was well above Ksh. 10bn, may be Ksh. 12bn. It is quite an extensive piece of work, if you see it. It would definitely cost more than ksh.1.7bn. May be this was just a section of it that cost Ksh.1.7bn.

SO.. I think this was the 30th well dug in Kenya, and hopes were really high that this was it. Unfortunately not so. Quite disappointing, especially if they drilled 5km down. And still nothing. Yet Uganda discovered an oceanful of oil, Sudan has vast amounts... maybe we just dont have any?

We African Countries need to start focusing away from Oil/mineral resources.Look at World's biggest economies:- US,Japan,China,UK,Germany etc...does not do this oil extraction in their own territories,meaning economies can be build without these fucking minerals..they bring conflicts....see DRC,Angola,Sudan.lol

IFC to Lend $100 Million for Kenya Energy Projects
Sept. 24 (Bloomberg) -- The International Finance Corp., a branch of the World Bank, plans to lend $100 million for sustainable energy projects in Kenya, program manager Paul Kirai said.

The funds will be lent over five years, he told reporters in the capital, Nairobi, today. The IFC is also in talks with 14 local banks to help them finance the projects, he said.

“This will allow more people to access clean energy and will help businesses to reduce energy costs, increase competitiveness and cut greenhouse gas emissions,” Kirai said.

The government has identified renewable energy projects worth $2.5 billion, he said. Kenya has a geothermal potential of 7,000 megawatts and is targeting 5,000 megawatts of geothermal power capacity by 2030, Energy Minister Kiraitu Murungi said March 30.http://www.businessweek.com/news/2010-09-24/ifc-to-lend-100-million-for-kenya-energy-projects.html

Most Kenyans say no to cleaner energy
http://www.afrol.com/images/symbols/ken_trad_cooking.jpg
Traditional cooking stoves remain popular among Kenyans

11 October - The majority of Kenyans are unwilling to abandon their traditional energy sources in favour of cleaner or renewable ones, unless their incomes rise significantly, a new study has found.

Last month, US Secretary of State Hillary Clinton announced US$ 50 million to subsidise the provision of clean, environmentally-friendly cooking stoves in developing countries to reduce deaths caused by inhaling smoke and help mitigate climate change.

But in Kenya, at least, the majority of households said that they were not willing to pay for improved energy sources because of their limited incomes, according to the report "A Comprehensive Study and Analysis of Energy Consumption Patterns in Kenya" prepared for Kenya's Energy Regulatory Commission earlier this year.

The Kenya Institute for Public Policy Research and Analysis (KIPPRA) found that just three per cent of Kenyans are using solar energy while biogas and wind energy account for 0.2 percent and 0.1 percent of national energy consumption. Only about 29 percent of households are connected to the electricity grid.

Poverty and low awareness of the benefits of renewable energy are the main reasons why the country's poor keep using "dirty" energy sources, the report said. Kerosene, charcoal and wood remain the most popular sources of energy among poor households.

Most Kenyans also prefer to keep their options open by using different types of energy for different uses instead of switching to a single new fuel source for all their demands.

The report indicated that, with rising income, most Kenyans are likely to replace kerosene and wood with cleaner fuels such as electricity, biogas and off-grid solar. But charcoal was a notable exception - its use does not decline with rise in income.

Eric Aligula, an economist working with KIPPRA, said an increase in income is usually connected with a move to the city, which explains the decline in the use of wood fuel, an energy source found mainly in rural Kenya.

At the same time, Mr Aligula said, most households that prefer charcoal as an energy source are likely to use it outdoors, while kerosene is mainly used inside houses.

"This could explain why [wealthier] Kenyans will stop using kerosene because it has a choking effect when used indoors," said Mr Aligula, but they continue to use charcoal outdoors, although it is a "dirty" fuel, because it does not affect them.http://www.afrol.com/articles/36751

Energy ministry launches Sh152bn expansion project

Business Daily,
By Paul Wafula,
Friday, October 22 2010.

Kenya is making quick progress towards shift to more reliable geothermal
power following the launch of a Sh152 billion ($1.9 billion) energy expansion project set to connect millions of consumers to the national grid.

The project funded by World Bank and other development agencies will see Kenya Electricity Generating Company (KenGen) boost its geothermal production capacity from 105 megawatts to 385 megawatts by 2013.

It will also provide 1.5 million more Kenyans with electricity in the next six years in urban, peri-urban and rural areas.

“This is part of the drive to shift the power base from the weather-dependent hydro and expensive thermal sources to geothermal that is not affected by weather conditions,” said Energy Minister Kiraitu Murungi.

Drilling of the geothermal wells will be financed by Exim Bank of China to a tune of Sh7.6 billion ($ 95 million), KfW of Germany Sh1.2 billion ($15 million) and the Government of Kenya will provide Sh17.4 billion ( $217 million).

About Sh82 billion ($1.03 billion) has been set aside for power generation.

The project is also set to improve supply lines and reduce outages during transmission.

About Sh19.7 billion ($247 million) has been earmarked for construction of five new transmission lines between Eldoret and Kitale, Kisii and Awendo, Kindaruma to Garissa via Mwingi, Olkaria and Lessos and between Suswa and Isinya.

The project is expected to enhance Kenya Power and Lightning Company’s (KPLC) connection rate, enabling it to meet its annual target of 200,000 new connections.

“We will connect at least one million new consumers by 2012 and we expect to have raised our electricity access from the current 23 per cent to 50 per cent after the project is completed in 2016,” said Mr Murungi.

Mr Murungi said that the priority areas for electricity expansion will be the agricultural economic zones in a bid to mitigate losses incurred by farmers due to unavailability of power.

“We have identified the fishing industry, dairy, coffee and tea growing
areas as the priority areas to allow for the establishment of cooling plants. This will enable farmers and fishermen time to bargain for better prices since they wont be forced to sell their products at low prices for fear that they will get spoilt,” said Mr Murungi.

World Bank country director, Mr Johannes Zutt said the bank has injected Sh26.4 billion ($330 million) as part the energy sector investment to increase geothermal power generation, enhance connectivity, and refurbish power plants to enhance efficiency.

“No country has ever achieved eight to 10 per cent growth annually needed normally to reduce poverty without modern energy,” said Mr Zutt.

Energy permanent secretary Patrick Nyoike said that the government has also asked the World Bank to provide partial risk guarantees for the five Independent Power Producers (IPP) projects with a combined generation capacity of 600MW, demanding for payment securities.

The IPPs developers have been awaiting payment securities to roll out their projects but KPLC’s balance sheet cannot support the required irrevocable standby letters of credit to cover debt services,” said Mr Nyoike.

All set for Kenya geothermal project
http://www.nation.co.ke/image/view/-/1039552/highRes/207324/-/maxw/600/-/2i150k/-/1PIC.jpg
Kenya’s high dependency on hydro power and costly diesel-powered generators will ease considerably when the Geothermal Development Company starts the multi-billion-shilling geothermal steam power generation project on the Menengai Crater in Nakuru.

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Drilling of the Sh60 billion project, which is fully financed by the Kenyan Government, will be in two phases and starts in January 2011.

The GDC has procured two rigs for drilling wells at Sh5.8 billion and is also financing drilling of three exploration wells.

The rigs and accessories were purchased from China Petroleum Technology and Development Corporation (CPDTC) through competitive bidding.

According to the company’s Central Rift Valley manager, Mr Benjamin Kubo, five Chinese expatriates are expected in the country before the end of the year to help implement the project.

Mr Kubo says the experts will train 120 GDC staff for six months, before leaving locals to manage the project.

The first phase of the project will have a capacity of 400MW by 2014 and by 2016 when it should be fully completed, it will have a capacity of 800MW.

--Offered for sale--
Exploration work was initiated in 2004 by KenGen and steam from successful drilling will first be offered for sale to the firm.

If by chance it declines to buy, the steam will be offered to Independent Power Producers (IPPs) and if not, GDC will construct power plants and generate electricity.

This process, according to Mr Kubo, is designed to meet the growing national needs for electricity in the country, which are projected at more than seven per cent annually.

“This arrangement is also meant to ensure that private investors in KenGen are shielded against the high risk of exploratory drilling in new fields,” he adds.

It is estimated that Kenya has a potential of 10,000MW of geothermal steam but has since 1957 only exploited 200MW.

“Kenya should not suffer a single blackout when we have such an enormous renewable resource, which is why GDC wants to tap at least 5,000MW of this energy and transform the country into a modern industrial hub by 2030,” the company’s public relations and communication manager, Ms Ruth Musembi, told the Nation.
source (http://www.nation.co.ke/business/news/All%20set%20for%20Kenya%20geothermal%20project/-/1006/1039550/-/jriv2y/-/index.html)

Kenya faces hurdles raising energy guarantees: minister
http://af.reuters.com/resources/r/?m=02&d=20101116&t=2&i=250388487&w=450&fh=&fw=&ll=&pl=&r=2010-11-16T115020Z_01_AJOE6AF0WVY00_RTROPTP_0_OZABS-KENYA-ENERGY-20101116

NAIROBI (Reuters) - The Kenyan government is unable to raise guarantees for the financing of six electricity generation projects, including the 300 MW Lake Turkana Wind Power initiative, its energy minister said on Tuesday.

The government planned to create an escrow account from which Kenya's sole power distributor could draw guarantees for private power companies.

The Lake Turkana Wind Power project has been delayed for lack of the guarantees because its financiers will not disburse funds without them.

"We have not been able to raise guarantees, not only for Lake Turkana Wind, but indeed for our six projects," Energy Minister Kiraitu Murungi told a news conference.

"The issue of guarantees has been a major hurdle because the Treasury thinks they will complicate our debt ratios."

Local media reported last week that the Central Bank of Kenya had declined to release $209 million from its reserves for the escrow account from which Kenya Power and Lighting would issue letters of credit to independent power producers.

"We are negotiating with Treasury and World Bank to see what is the best way out because we have to have these projects," Murungi said.

The 560 million euro Lake Turkana project was initially scheduled to have the first 50 MW onstream by June 2011. The issue of guarantees has thrown that schedule off track and the company now hopes to start operations by the end of 2012.

Lake Turkana signed a power purchase deal with Kenya Power in January at a fixed rate of 7.22 euro cents per kilowatt hour for 20 years. The government committed to provide certain guarantees to lenders under that deal.

Murungi said the government was considering setting up a fund to underwrite the drilling of geothermal wells.

Kenya is focusing on green energy projects such as wind and geothermal because its reliance on hydroelectric power often throws production into the doldrums whenever there is a drought.

The east African country estimates its section of the Rift Valley has potential for at least 7,000 MW of geothermal power. It is exploiting about 265 MW.

Murungi said attracting investors for Kenya's geothermal sector was a challenge because of the costs involved. A single well requires 400 million shillings and only two of 10 wells sunk yields viable amounts of steam, he said.

"We will create a fund which would underwrite dry wells drilled by private companies. The risk is actually 80 percent," he said.
http://af.reuters.com/article/investingNews/idAFJOE6AF0BS20101116

Kenya Considering Fund for Geothermal Drilling, Standard Says
Kenya is considering creating a fund to underwrite about 20 percent of the initial cost of drilling geothermal wells in a bid to attract more investment, the Standard reported, citing Energy Minister Kiraitu Murungi.

The cost of exploring for underground steam deposits, coupled with the risk of not finding anything, is “scaring away investors,” the Nairobi-based newspaper cited Murungi as saying.

Six electricity-generation projects in Kenya, including the Lake Turkana Wind Power initiative, have been delayed because of a lack of government-backed guarantees, the newspaper said. The East African nation’s unexploited geothermal potential is at least 7,000 megawatts, the newspaper said. http://www.bloomberg.com/news/2010-11-17/kenya-considering-fund-for-geothermal-drilling-standard-says.html

Kenya in Talks With Reliance, Tatas for Investments
Nov. 16 (Bloomberg) -- Kenya’s government is in talks with Reliance Industries Ltd., India’s biggest company by market value, and the Tata Group for possible investments in the African country, Prime Minister Raila Odinga said.

“Reliance and Tata groups are interested,” Odinga told Bloomberg-UTV in an interview at the World Economic Forum’s India economic summit in New Delhi today. “We see a new group of Indian multinationals taking interest not only in Kenya, but the rest of Africa.”

Billionaire Mukesh Ambani’s Reliance has $6.5 billion in cash to use in buying energy assets overseas as natural gas output from its biggest deposit in India stagnates. Tata Group Chairman Ratan Tata has made 66 acquisitions in two decades. The group’s revenue was more than $67 billion in the year ended March, according to its website.

Reliance is looking at investing in oil exploration in Kenya, Odinga said.

Manoj Warrier, a spokesman for Reliance, declined to comment. Raman Dhawan, managing director of Tata Africa Holdings, couldn’t immediately be reached at his office in Johannesburg.

Reliance bought three shale-gas assets in the U.S. this year. The Mumbai-based explorer and oil refiner paid $943 million for the three assets and agreed to spend $2.5 billion in future drilling costs on behalf of its partners.

Reliance had 293.5 billion rupees ($6.5 billion) in cash and equivalent and outstanding debt was 682 billion rupees as of Sept. 30, according to an Oct. 30 statement.

Oil Blocks

Cnooc Ltd., China’s biggest offshore energy explorer, has told the Kenyan government it plans to drop licenses to search for oil and gas in two Kenyan blocks by December, Mines and Energy Ministry Permanent Secretary Patrick Nyoike said Oct. 21. Cnooc is interested in working with Tullow Oil Plc and Africa Oil Corp. to explore five other blocks, Nyoike said then.

Kenya has four sedimentary basins that have been divided into 38 exploration blocks, Nyoike said in July. About 24 of the blocks are being explored, he said.

Reliance, owner of the world’s biggest refining complex, bought fuel retailer Gulf Africa Petroleum Corp. to enter the African market in September 2007. Gulf Africa Petroleum retails fuel in Tanzania, Uganda and Kenya. It owns storage tanks and depots in east and central Africa, Reliance said at the time.

The Tata Group’s businesses in Africa include automobiles, phone services and a hotel.http://www.businessweek.com/news/2010-11-16/kenya-in-talks-with-reliance-tatas-for-investments.html

AfDB approves $1bn for energy
The African Development Bank (AfDB) has recently approved over $1 billion to be invested in energy projects in Egypt, DR Congo, Ethiopia, Kenya and Tanzania, it said in a statement released early this week.

The statement said the financing is in line with the top priority the bank puts on energy for Africa’s development. The funding includes a $69.4 million (about Sh97.2 billion) to finance the Iringa-Shinyanga transmission line project. The planned line is a 400 kV line and will have a length of about 670 km.

“It will interconnect four substations at Iringa, Dodoma, Singida and Shinyanga towns. The project was approved on October 26, 2010,” AfDB noted in the statement.
Egypt will get $550 million to finance the Suez steam cycle thermal power plant project and DR Congo $106.6 million for its rural and peri-urban electrification project. In Ethiopia, nearly $232.2 million will be used to finance the electricity transmission system improvement project whereas in Kenya the $71.45 million loan will be for a project to improve power transmission.

AfDB said the purpose of the Suez Power Plant Project is to increase the power generation capacity in Egypt leading to the enhancement of socio-economic development. It involves the construction of a 650 megawatt (MW) steam cycle power plant at a site located in the vicinity of Suez city, about 150 km east of Cairo.
Power will be evacuated from the plant through a 220 kV network by rehabilitating the existing double circuit over-head transmission line and implementing two additional underground cables.

The power generated will be used for industrial and commercial activities countrywide thus contributing to job creation, increase in productivity, electricity connection rates and improvement in the quality of life.

“Other direct project beneficiaries include the people living around the project site who will benefit from employment during project implementation and operation,” the bank said.

The two grants for DR Congo target an investment project concerning the rehabilitation and extension of the electric power distribution system of Kinshasa and selected localities in four provinces.

It among other things comprise the improvement, rehabilitation and extension of the medium and low voltage lines as well as establishment of connections, installations of public lighting units and promotion of specific commercial operations to increase the number of new subscribers and reach the maximum number of inhabitants.

AfDB said all these operations will contribute to increasing available energy, improving network operating conditions and enhancing the operational performance of sector players. They will also help reduce technical and non-technical losses, in particular through the installation of prepayment meters.

The loans to Ethiopia and Kenya were approved early this month. The electricity transmission system improvement project in the former consists of construction, on a turnkey basis, of four 230 kV transmission lines and related substations.

“The (Kenyan) project will result in increased and reliable power supply in the western and eastern part of the country and thereby contribute towards increasing the number of new connections by 200,000 annually and the increase in rural electricity penetration from the current 20 per cent to 40 per cent by 2020.” (APF) http://thecitizen.co.tz/sunday-citizen/41-sunday-citizen-business/6614-afdb-approves-1bn-for-energy.html

Kenya seeks nuclear power
NAIROBI, Kenya Dec 20 - The Ministry of Energy has formed the Nuclear Electricity Project Committee charged with developing nuclear power for the country.

The move comes as the government strives to look for green, reliable and affordable electricity.

Besides coming up with a roadmap on the project, including the timelines for atomic energy agency’s approvals, it is expected to oversee preparation and implementation of a comprehensive legal and regulatory framework.

The thirteen-member committee (made up of mostly academic professors) will also review and approve a capacity-building plan targeting young Kenyans with degrees, especially in engineering and mathematics, for purposes of nuclear research and development.

Energy Minister Kiraitu Murungi said nuclear power is important for the country as it commands the highest economic merit and value proposition in terms of production and transmission.

“The government has decided to embark on nuclear electricity generation because our country has continued to face chronic power shortages and high consumer tariffs due to reliance on costly oil based thermal generation and unreliable hydro power,” Mr Murungi told reporters on Monday.

The production of 1,000 Megawatts of nuclear energy is estimated at $3.5 billion (Sh287.7 billion) at a tariff of 6.84 US cents per kilowatt hour.

This compares favorably with the $5 billion at 8.4 US cents per kilowatt-hour required for geothermal production and $2 billion at 9.54 US cents per kilowatt-hour for coal.

Mr Kiraitu revealed that the ministry was considering letting the Nuclear Electricity Project Committee to operate with little government intervention.

“The government is ready to give the committee its full support and it could even operate outside normal ministry protocol to ensure we get nuclear power,” he said.

The first task for the committee will be to conduct extensive countrywide civic education to get people to accept the concept.

The Ministry of Energy has already designated Sh300 million for the committee to develop a detailed road map for nuclear energy production.

The country is targeting to produce at least 7,000MW from nuclear sources by 2030.
http://www.capitalfm.co.ke/business/Kenyabusiness/Kenya-seeks-nuclear-power-5193.html

KenolKobil on Tuesday announced the acquisition of Phoenix Uganda Petroleum Ltd.

The assets acquired consist of a 1,800 metric tonne fuel terminal, a modern three storey office block and three service stations in Kampala.

"KenolKobil will use its new high volume depot in Jinja to provide services to to other marketers in the country as well as position it for Black Oils storage once the anticipated Eldoret-Jinja-Kampala pipeline is developed," the firm said in a statement.

In 2009, KenolKobil expanded its footprint in East Africa by entering Burundi (http://www.nation.co.ke/business/news/-/1006/669710/-/ifr6ohz/-/index.html) through an acquisition.

The firm bought a 100 per cent stake in Oil Burundi, a top oil marketer, from Engen International Holdings (Mauritius) Limited.

Last year, the firm bought 10.5 per cent of Chevron Corporation’s stake in a Zambian lubricants company (http://www.nation.co.ke/business/news/-/1006/846400/-/hdvxcez/-/index.html).

The acquisition by Kobil Zambia increased its stake in Ndola-based Lublend Ltd to 25.5 per cent from 15 per cent it had acquired from Total Zambia Ltd in 2008.
http://www.nation.co.ke/business/news/KenolKobil%20acquires%20Ugandan%20firm/-/1006/1095490/-/vidhfi/-/index.html

^^kenol keep going :cheers::cheers:

^^kenol keep going :cheers::cheers:

^^
I think you meant Kobil. :lol:

I can bet you will never find a Kenol petrol station outside Kenya though Kobil stations are virtually everywhere in the region.

Kenya Aims to Make Geothermal Energy Main Power Source By 2014
Jan. 24 (Bloomberg) -- Kenya, Africa’s largest producer of geothermal power, is aiming for the energy supply to surpass hydro as the top contributor to the country’s electricity grid by 2014, said Silas Simiyu, chief executive officer of the state-owned Geothermal Development Co.

A 10-year, $2.6 billion exploration plan will involve sinking 566 wells in the Great Rift Valley, where shifting tectonic plates provide a key source of the energy, the company said in a statement yesterday. GDC is expected to begin drilling in Menengai in central Kenya this week, with an initial aim to find sufficient reserves to feed a 400-megawatt facility by 2014, Simiyu told reporters yesterday.

Over the next decade, the company aims to discover 2,336 megawatts of steam produced by hot underground rocks that boil water. The vapors are used to power turbines. Geothermal energy currently accounts for 12 percent of Kenya’s 1,405 megawatts of generation, including an installed capacity of 212 megawatts at a plant at Olkaria, about 120 kilometers (75 miles) outside of Nairobi, the capital.

“We should not see a situation of power shortages like we had before,” Simiyu said.

Drought in Kenya two years ago depleted water levels at hydropower dams, which supplies 55 percent of the country’s electricity. The resulting power rationing between August and October 2009 hindered growth in East Africa’s largest economy.

Kenya estimates the extent of its unexploited resources ranges between 7,000 megawatts and 10,000 megawatts at 14 “high- potential” locations valued at $30 billion, according to the statement.http://www.businessweek.com/news/2011-01-24/kenya-aims-to-make-geothermal-energy-main-power-source-by-2014.html

Hi Desert Burner,

I will like to know more about Wast to energy Projects developed in Nairobi, My company is specialist in Waste To energy systems and building Power Plants. Please I will like to know more about projects there and public information to apply in denders there.

Regards,

Hi Desert Burner,

I will like to know more about Wast to energy Projects developed in Nairobi, My company is specialist in Waste To energy systems and building Power Plants. Please I will like to know more about projects there and public information to apply in denders there.

Regards,

If you would like to forward your proposal on how to manage and transform waste from nairobi's biggest Dumpsite, The Dandora Dumpsite,you can call City Hall

Nairobi City Council -City Hall

Local Authorities,
City Hall City Hall Way, Nairobi

Postal Address : -NAIROBI GPO
Contacts

Tel: +254-202224281

Keep in mind working hours are between 8- 5 pm Kenyan time.

Some 33 Companies have come up with proposals on how to Manage the Dump in nairobi,so yours better be very good!


If you are thinking of different parts of the country, and specifically geared towards Energy production, visit the Ministtry of Energy website

http://www.energy.go.ke/

And look for a contact there.

Good luck.

I'm hoping these guys can find something:The range is from 400m to 1bn barrels


http://www.afren.com/afreneax/kenya.html

Tullow,the successful explorers in Uganda,are expected to drill sometime this year.

http://www.epmag.com/Exploration/explorationnews/2010/September/item66767.php

Wished this one had come to fruition:L8 &L9 had prospects of 5bn each

http://www.epmag.com/Exploration/explorationnews/item5752.php

http://www.businessdailyafrica.com/Corporate+News/Dominion+faces+Tullow+in+search+for+oil+in+Kenya/-/539550/1134214/-/aeep81z/-/index.html

Inspectors from the International Atomic Energy Agency, who have been in the country for a week, on Thursday approved Kenya’s application for its first nuclear power station.

The 35,000MW facility is to be built at a cost of Sh950 billion on a 200-acre plot in the Athi Plains, about 50km from Nairobi, and is expected to satisfy all of Kenya’s energy needs until 2040.

The formal agreement is expected to be signed between the IAEA and the government in the next two weeks.

Already the government is in talks with the United Kingdom Atomic Energy Authority (UKAEA), which will supervise the construction and train technicians and other experts to run the plant.

UKAEA executive director, Prof Attaboy Fakes, flies in next week for consultations with the government committee in charge of the project, chaired by Gender Minister Esther Murugi.

Officials from the Nairobi Metropolitan ministry under which the projects falls told the Nation that the construction of the plant will start early next month and is expected to be completed by September 2012.

“We are hitting the ground running, we have brought in top nuclear engineers from Europe and Asia for the construction work beginning May,” said a top ministry official who declined to be named because she is not the spokesperson.

A 50km shaft will be dug into the ground at Oborimo, Urongo in Kisii Central District to store the nuclear waste.

The management of radioactive waste is one of the greatest problems of nuclear energy. It is stored until such a time in the future when the technology will exist to dispose of it.

Once complete, the nuclear power plant is expected to provide 90 per cent of the country’s electricity needs, making Kenya the world’s biggest consumer of nuclear energy ahead of France which derives 80 per cent of its electricity from nuclear sources and the United States, which obtains only 19 per cent of its electricity from the same.

A debate has been raging globally about the safety of nuclear energy in the wake of the massive earthquake and tsunami that hit Japan last month, destroying nuclear reactors at the Fukushima power plant and triggering radiation fears.

The inspectors are expected to certify that Kenya has adhered to all the international conventions on peaceful use of nuclear technology that it has ratified, the official said.

The conventions include the Nuclear Non-proliferation Treaty, IAEA Additional Protocol, Small Quantities Protocol and Comprehensive Safety Agreement.
Nation (http://www.nation.co.ke/News/UN+clears+Kenya+nuclear+energy+project+/-/1056/1136774/-/15lk6a7z/-/index.html)

Nice to see some progress here!We hope the power shortages that have engulfed the country for so long would become a thing of the past:okay:

I don't know why but this sounds too good to believe. 35,000MW nuclear power plant built in as little as one year in Kenya?

Yes I'm also a bit skeptical of the time frame,perhaps the engineers and the UK Atomic agency will speed up the work so that it's finished in one year's time.The funny thing is they still have not even concluded talks with them and here they are estimating the project to be completed by September 2012

I'd say around 2015 would be more realistic if the project gets off ground next year. Now if it is infact 35,000MW then Kenya will have all the power it needs. I doubt it'd be enough till 2040 though. Heck even 10,000MW would be enough for at least a decade, and imo that'd sound like a more realistic project and would costs would be a lot smaller. Yet going back to 35,000MW with all of that energy Kenya could sell to other countries and use the revenue to further build up the power supply, or upgrade current plants and the distribution network... I definitely see economic growth booming if this power plant really is built...But of course power needs to be distrubuted so hopefully building up distribution networks isn't ignored or the plant will be useless once its operation until they're built.

Some are saying its April's fool prank. Guess y'all be punked.

lol.

Some are saying its April's fool prank. Guess y'all be punked.

It was published on the 31st, today if you're in the states.

It was published on the 31st, today if you're in the states.

That is the biggest joke i've ever read in this forum!! It's a prank of course, things wouldn't go so quickly!!

The 35,000MW facility is to be built ::: LMAO

Joke of the century.

Jeeez you guys are pranked so easily, it was an April fool's day thing.

Jeeez you guys are pranked so easily, it was an April fool's day thing.
Sounds like one!:lol:

:laugh:

BusinessDailyAfrica (http://www.businessdailyafrica.com/Oil+firms+given+10+days+to+collect+fuel/-/539552/1157128/-/item/0/-/3fmkvy/-/index.html): Oil firms given 10 days to collect fuel
http://www.businessdailyafrica.com/image/view/-/1157132/highRes/258481/-/maxw/600/-/r7o0mn/-/KPC.jpg

Oil marketers have only 10 days to clear stocks that the Kenya Pipeline Company (KPC) holds in their names, Energy minister Kiraitu Murungi announced on Thursday, as the government moved to unlock a five-day stalemate that has left the country with an acute petroleum shortage.

Mr Murungi acted as it became evident that Kenya Pipeline Company had enough stocks of fuel, but delayed evacuation from its storage tanks was the main cause of the crisis that has persisted since May Day.

The 10-day window significantly reduces the chances of the marketers using held stocks for speculation in a market where prices are likely to change every 30 days.

The oil firms are currently allowed to leave stocks with KPC for up to 30 days – a window that allows them to hold on to them until the next price review that comes on the 14th of every month.

“If they pay for stocks within 10 days then they will have little incentive to leave it with KPC,” Mr Murungi said, adding that the government is ready to withdraw the licences of oil firms who flout this and other laws aimed at curbing anti-competitive behaviour in market.

Kenya’s petroleum market experienced similar distortions in 2007 as Triton Oil – a small operator with less than three per cent of the market — notoriously held large stocks at the Kipevu Oil Storage Facility owned by KPC, clogging up the system.

KPC is currently contesting an arbitration order to pay KenolKobil more than Sh4 billion for the resulting loss of business.

Mr Murungi said that while oil marketers had enough stocks of petroleum products at KPC, slow evacuation linked to possible gains from recent tax cuts was behind the shortage.

The government last week announced tax cuts on diesel and kerosene that are expected to bring down prices by Sh2.06 and Sh2.16 respectively to stand at Sh105.44 and Sh88.73 per litre.

Kerosene is set for a further Sh5.04 price reduction if Parliament approves proposals to scrap all taxes on the commodity.

KPC managing director Celest Kilinda said the process of paying for import quotas and having the petroleum products cleared for pumping to oil marketers takes between five and six days, lending credence to the 10-day window allowed.

The new cap on the clearing period is set to tilt the market in favour of big players as small firms that rely heavily on financiers to back their import quotas will face additional challenges in managing cash flows.

Mr Kilinda said that big marketers like KenolKobil and Total have enough financial muscle to cover their imports but small players rely on big banks like Paris-based PNB Paribas for guarantees.

“We are likely to be pushed out by the big players who have less cash flow problems,” said Issa Sheikh, the chief executive of Hass Petroleum.

“The space at KPC is allocated according to an oil marketer’s ability to lift from the pipeline system and small players may not meet the 10-day restrictions.”

He asked the government to drop the time limitations and embark on boosting efficiencies in the oil supply system, including at Kenya Petroleum Refinery Ltd (KPRL) and KPC.

Mr Kiraitu said the government was looking at building either a new jetty in Mombasa or a pipeline that would help offload petroleum products from ships in high seas, easing delays at the single jetty that forces ships to queue for weeks.

The new regulations could increase efficiencies in the supply chain, with refined petroleum exports arriving at pump stations at faster rate, averting crises that such the prevailing one that have caused massive traffic jams and disrupting transportation of people and goods.

Mr Kiraitu also announced ambitious plans to setup a strategic oil reserves owned and managed by the government to cover the country’s oil needs for 25 days at a cost of over Sh20 billion.

He said his ministry is consulting with Treasury to release the funds within the remaining two months of the current fiscal year to fast-track the plan.

The implementation of the plan is expected to cushion the economy from the frequent heavy shocks whenever there is inadequate supply of petroleum products as a result of a long legacy of underinvestment in the refinery, supply, and petroleum storage system in the country.

The recent crisis, for instance, was partly caused by the failure by Kenya Petroleum Refinery Ltd (KPRL) to process eight million litres of petrol last month following a power outage at the Kiambere power station that stalled production for over a week.

The lack of a strategic oil reserve has exposed the country to high oil prices brought home by political upheavals in the oil producing Arab world and speculation in the international oil market.

Last month, the price of diesel, petrol, and kerosene rose to record levels after the Energy Regulatory Commission (ERC) released new maximum retail prices of the products that revealed a sustained rally in the international price of the commodities.

The strategic oil reserve plan comes at a time when the government expenditure has been growing rapidly, driven by the expanded bureaucracy under the new Constitution and massive infrastructure projects.

Revenue collections are also expected to fall below set targets for fiscal 2010/11 following the recent tax waivers on staple commodities to avert public unrest over surging cost of living.

Analysts however say the plan is essential to cushion the economy from disruptions that come with occasional fuel shortages.

"The government can either run a deficit or borrow more from the local or international markets to fund the plan,” Prof Joseph Kieyah, an analyst at the Kenya Institute of Public Policy Research and Analysis said.

The high costs of setting up a strategic oil reserve could be offset by high economic growth in the coming years,” he said.

Power firm seeks to extend electricity reach

Kenya Electricity Transmission Company (Ketraco) is currently constructing power transmission lines with a total distance of about 900 kilometres as it seeks to increase supply in the region.

The company has set up a total of 282 kilometres of lines and substations including 50 kilometre Sondu Miriu-Kisumu, 62 kilometre Chemosit-Kisii, 48 kilometre Galu-Rabai and 122 kilometre Kamburu-Meru.

“With four projects already completed and another close to 30 on progress, we project an asset base of about Sh40 billion from the current Sh8.7 billion to increase our power transmission in Kenya and in the region,” said Ketraco chairman Justus Kageenu.

Among ongoing projects include the 67 kilometre Kilimambogo-Githambo line, 34 kilometre Mumias-Rangala line, 475 kilometre Mombasa-Nairobi line and 320 kilometre Rabai-Malindi-Lamu line.

The firm’s ambitious plans include the Mombasa-Nairobi line, which is the first 400kV transmission line in East and Central Africa.

“These will be followed by numerous lines aimed at protecting and strengthening existing lines as well as evacuating power from far-flung generators like the 400 kilometres Loyangalani-Suswa line,” said Mr Kageenu

Daily Nation (http://www.nation.co.ke/business/news/Power+firm+seeks+to+extend+electricity+reach+/-/1006/1158530/-/12pebsl/-/index.html)

Studies into Mombasa natural gas plant in phase II

Mott MacDonald Ltd, a leading international engineering consultancy firm based in the UK has embarked on phase II of a study to evaluate the economic viability of building a bulk import and storage facility for liquefied natural gas (LNG) in Mombasa.

Phase II, to be competed mid this year, consists of an internationally compliant environmental and social impact assessment (ESIA) of the proposed terminal as well as an organisational and institutional study.

Upon completion, the plant — the first of its kind in East Africa — will supply natural gas to industries and substitute fuel for some thermal generation facilities around Mombasa

Tapping into natural gas is part of Kenya’s plan to becoming a middle-income country by 2030, with an annual GDP growth of 10 per cent from 2012, fuelling a rising demand for energy.

“Coal and geothermal energy are expected to account for a larger per cent of that demand, but are becoming constrained hence natural gas is being actively considered to bridge the gap,” said Mott MacDonald’s project director Azfar Shaukat.

Mr Shaukat said the project will contribute to energy security as LNG is the cleanest fossil fuel that produces little atmospheric emissions and is cost efficient to transport.

The project comes at a time when Tanzania has made commercial discoveries of natural gas while Uganda has found crude oil. Kenya is the only country in the region that lacks fossil fuels despite exploration work dating back to the colonial era.

Last year, the East African Community secretariat awarded COWI Group of Denmark the contract to carry out feasibility studies for setting up the proposed Dar es Salaam-Tanga-Mombasa natural gas pipeline.

Mott MacDonald on the other hand won the bid to conduct studies from the Ministry of Energy in 2009.

The firm will assess LNG demand for electricity generation, industrial use and other end-users for the next 20 years

The Ministry of Energy selected the consultancy in accordance with the procedures set out in the World Bank’s Guidelines: Selection and Employment of Consultants by World Bank Borrowers (revised October 2006).

Phase I of the study was completed late last year and centred on technical, economic and financial assessments with terminal configurations of bulk import, storage and distribution facilities.

Energy Permanent Secretary Patrick Nyoike said phase I entailed identifying a suitable site and requirements for LNG receiving, storage and covering pipelines to power plants, large industrial consumers and bottling facilities of condensed natural gas (CNG) for transportation to small and medium scale users.

The supply structure for shipping, re-gasification, transportation and distribution was to be assessed with regard to infrastructure requirements of LNG, taking into account potential market demand.

Five firms submitted their bid documents to the Ministry of Energy when the expression of interest for LNG study closed on September 12, 2008.

Consultants were required to have carried out one such assignment in the past five years.

Bid documents were received on February 3, 2009 from ESBI Engineering & Facility Ltd of Ireland and ICRA Management Consulting Services Ltd of India and Mott Macdonald that teamed up with Kawi Resources.

TheEastAfrican (http://www.theeastafrican.co.ke/business/Studies+into+Mombasa+natural+gas+plant+in+phase+II/-/2560/1158276/-/item/0/-/nagvqo/-/index.html)

good for industrial development and energy consumption in mombasa.:cheers:

Things are looking up. Maybe Kenya can make it past the fragile development phase without too many issues...

State plans double power production in next three years


The government has announced plans to double electricity production over the next three years in a move that could slash power costs by half.

However, the main challenge is raising enough funds to implement the project.

Mr Patrick Nyoike, the permanent secretary in the Energy ministry, said Wednesday that the government had secured financing commitments of Sh160 billion ($1.9 billion) from multi-lateral lenders and Treasury, which covers part of the costs.


The multi-billion shilling plan is anchored on exploiting coal, wind, and geothermal wells to generate 1,233MW out of the 1,600MW expected to enter the national grid over the three-year period.

About 402 MW will be generated from geothermal wells, 531 MW from wind, 300MW from coal plants, and 342MW from diesel plants.

“Over the next three years, our goal is to add more than 1,600 MW (to the national grid) bringing the country’s generation capacity to slightly over 3,000 MW,” said Mr Nyoike at a Nairobi conference on affordable energy.


The country’s installed capacity currently stands at 1,462MW against a peak demand of 1,188MW, indicating that the economy is thinly cushioned against power outages.

He said the investments would enable the country to become self-sufficient in energy, while reducing power costs which have constrained economic expansion.


“The government has already raised over $1.9 billion for these projects from various development partners and the exchequer under the Energy Sector Expansion Programme,” he said.


The move comes against a backdrop of steady growth in demand for energy to support increased economic activity which has seen a decline in the country’s reserve generation capacity which now stands at 1.23 per cent down from 27 per cent in 2004.

Erratic rainfall and declining water levels in hydro-generation dams has forced the country to turn to costly energy generation.


Last year, for instance, about half of the country’s electricity consumption of 6,615 gigawatt hours was derived from thermal means where generation costs are closely linked to the petroleum prices.


Volatility in oil prices therefore has a huge bearing on the overall cost of energy, with the fuel adjustment expense in power billing now accounting for the single largest item.


Industry estimates put the cost of generating electricity from thermal sources in excess of five times that of hydro-generation.

The Kenya Association of Manufacturers (KAM) estimates that the high energy costs are accounting for up to two-fifths of the total production costs which makes locally manufactured goods uncompetitive compared to those from other economies in the region.

But Geothermal Development Company’s (GDC) last week’s discovery of a high-value well with substantial amounts of steam energy in Menengai provides much needed relief.

Mr Silas Simiyu, the managing director at GDC, said geothermal exploitation of energy is the cheapest option.

It costs about Sh5 to generate a geothermal unit of electricity.

BusinessDailyAfrica (http://www.businessdailyafrica.com/State+plans+double+power+production+in+next+three+years/-/539552/1165202/-/item/0/-/11aetjdz/-/index.html)

Mombasa Refinery to Commission Power Plant

The Kenya Petroleum Refineries Limited has said it will commission a power plant by year end, stabilising supply to the facility in the event of outages.
The $13 million (about Sh1.12 billion) 9 megawatt plant announced last year will use materials derived during processing of crude oil.

The refinery CEO Bimal Mukherjee said generators had been tested, paving way for civil works and construction of tanks.

"The KPRL board has decided to fast-track the building of a dedicated power plant at the refinery. This will resolve the issue of external power supply interruptions which have recently caused production problems," said Mr Mukherjee, in a statement following a board meeting on Monday.

A month ago, external power failure saw the refinery shut down for one week. The power generation venture is part of short term improvements at the facility meant to confront challenges arising from lack of investments in equipment and frequent power outages. KPRL supplies 40 per cent of the local demand but is unable to meet demand due to inconsistent power supply, equipment failure, and poor technology.

Power upsets lead to interruptions in product supply in the market leading to damage of the equipment used in the manufacture of petrol. Other plans include switching from KPRL's current tolling model to a merchant model, a move aimed at making the refinery more accountable to oil marketing companies and to consumers.

White oils

Essar Energy has since mid 2009 held a 50 per cent interest in the Mombasa refinery and is also the firm's operator under the Technical Services Agreement. The other half is owned by the Government.

The refinery was commissioned in 1963 and has a capacity of four million tonnes of crude per year (80,000 barrels per day).

However, it currently processes only 1.6 million tonnes of crude per year or 32,000 barrels per day.

The refinery, the only one in East Africa, serves Kenya, Uganda, Burundi and Rwanda. Tanzania imports refined products, known as white oils.

AllAfrica (http://allafrica.com/stories/201106030499.html)

Sh215bn needed for power projects by 2030, says firm

The Geothermal Development Company (GDC) needs Sh215 billion ($ 2.5 billion) to buy 12 drilling rigs to meet the country’s growing electricity demand by the year 2030.

The provision of adequate, reliable and affordable energy is a key driver of Vision 2030 which aims at transforming Kenya into a medium income economy in the next 20 years.

According to GDC managing director Silas Simiyu, the rigs will be used to drill 600 wells.

Dr Simiyu was speaking at Menengai Geothermal Project in Nakuru last Friday during the unveiling of a Sh6 billion credit finance agreement with the French Development Bank (AfD).

The grant will be used to purchase two rigs for the first phase of the multi-billion Menengai Geothermal project as well as training of GDC drilling staff.

The Menengai Geothermal field has a capacity to produce 1,600MW.

According to the country’s economic blueprint, electricity requirement is set to increase to 15,000MW in the next two decades and GDC will contribute 5,000MW from geothermal sources.

Phase 1

The first phase of the Sh70 billion ($818 million) Menengai project is expected to produce 400MW by the end of 2015 and ease power shortage in the country as the country warms up to the realisation of Vision 2030.

“With this grant from AfD I believe that the realisation of the 400MW in the first phase of the Menengai Project will come sooner than later,” said Dr Simiyu.

BusinessDailyAfrica (http://www.businessdailyafrica.com/-/539552/1180242/-/66hsw3z/-/index.html)

Firm floats bids for ‘largest’ geothermal project in Africa
Bids for what could become Africa’s largest geothermal project have been floated by the Geothermal Development Company, and construction of the first phase of four is set to begin January 2012.

The first phase at Bogoria-Silale Geothermal Complex situated in Baringo, Bogoria, Paka, Chepchuk, Korosi and Silale areas will
cost about Sh291 billion to complete and will greatly boost generation of green energy and help reduce escalating electricity costs in the country.


Eight power plants

“With a potential of more than 3,000MW, Bogoria-Silale will open up the northern frontiers of the country,” said Mr John Lagat, Geothermal Development Company’s (GDC) chief geologist.

“The region is ready to give green power and cut down the cost of electricity in the country,” he added.

In the first phase, GDC will partner with investors from the energy sector to construct eight power plants, each with a capacity of producing 100MW totalling 800MW by 2017.

Drilling of the initial 200 wells at the site will start January 2012.
Daily Nation (http://www.nation.co.ke/business/news/Firm+floats+bids+for++largest++geothermal+project+in+Africa+/-/1006/1189456/-/h8sfj9z/-/index.html)
^^ Good news.

Apache Energy Corp invests offshore kenya

http://www.epmag.com/Exploration/explorationnews/2011/June/item84125.php

Lamu banks on Sh9bn Rabai project for power

The Sh9 billion Rabai power transmission project in Lamu starts in August and is expected to trigger commmercial and industrial activity in the region.

Power transmitter Ketraco has acquired more than 80 per cent of the 323km way-leave, the parastatal’s corporate communications manager Raphael Mworia said.

The Kenya Electricity Transmission Company Limited official said ground breaking is scheduled for next month, adding engineers were finalising soil analysis.

Once complete, it will replace the 33kV single-circuit serving the region with 220 kV capacity that will provide more reliable power. The project is funded by the China Exim Bank under the rural electrification programme. It is aimed to serve Malindi, Garsen, Witu, Mpeketoni, Mokowe, and Lamu.

“The proposed project will replace many privately operated small diesel power stations which are extremely expensive to run,” Mr Mworia said.

The 323km project will run from Rabai, where Ketraco has acquired a 200-acre piece of land to build a sub-station. Other sub-stations will be established in Malindi, Garsen and Lamu.

“We have acquired all the land we require and compensation is over 90 per cent complete,” Mr Mworia said.

In Lamu, the project will cater for increased power requirement to run the proposed Lamu port, proposed sugar factories in the area around Tana Delta and other industries in the region.

Lack of reliable power, said Mr Mworia, has hurt small-scale firms, resulting in reduced productivity in a number of sectors. Malindi will get the increased power before the end of next year, with Lamu expected to get power nine months after, he said.

The contractor, China CAM Engineering Company Ltd has already acquired 2 campsites at Gede and Garsen both with a combined capacity to accommodate 400 workers once the construction of the project commences.

Isolated distribution network of electricity in Lamu translates to low generation capacity, meaning that not all connected consumers can be supplied with sufficient electricity.
The existing systems can only accomodate limited connections, locking out a huge number of potential customers.

“The power supply in Malindi, which is the only part of the project area supplied directly from the interconnected grid, is insufficient and unreliable,” Mworia said, adding that power supply is often interrupted with consumers experiencing voltage fluctuations.

As part of the project, Kenya’s first marine cable will be installed to transmit power from Mokowe on the mainland via the Indian Ocean to the Lamu Island, which relies on power generators.

Kenya Power has embarked on a plan to boost energy transmission capacity to meet load growth across the country. The plan entails construction of 38 transmission projects totalling 3,697km.

The estimated cost of committed projects is Sh43.3 billion ($482 million) while other transmission projects planned for the near future will require approximately Sh78.8 billion ($876 million).

Among the scheduled Ketraco transmission projects are; Mombasa-Nairobi 400kV double circuit, Mumias-Rangala 132kV single circuit, Sangoro-Sondu 132kV, Kindaruma-Mwingi-Garissa and Eldoret-Kitale.

Others are Kenya (Lessos)-Uganda (Tororo) 220kV single circuit, Rabai-Malindi-Garsen-Lamu 220kV single circuit, Reactive Compensation phase 1 of Nairobi Transmission system and an upgrade of Embakasi from 180MVA to 270MVA.

gkihara@ke.nationmedia.com

http://www.businessdailyafrica.com/Corporate+News/Lamu+banks+on+Sh9bn+Rabai+project+for+power/-/539550/1204214/-/jgldqi/-/index.html

Above story found through this link.

What are some of the most anticipated development projects in Kenya?

I have going through a number of projects for months though I have not been able follow up on whether they are successfully completed.

Which ones do you think are the most anticipated projects?


Thika Highway should be one of them I guess.

:cheers:

I'm sure passengers flying through JKIA can't wait for its expansion to be complete.

i guess both of you named the biggest ones, we got lamu port,tatu city probably the geothermal drilling i would assume.

Also the Ngong Road and Langata Road expansions

WB gives Sh11 billion for power projects
BDA (http://www.businessdailyafrica.com/Corporate+News/WB+gives+Sh11+billion+for+power+projects/-/539550/1244050/-/ncntypz/-/index.html)

A World Bank agency has provided $110 million (Sh11 billion) as security to boost production of geothermal power.

The disbursement to OrPower IV, a US firm involved in generation of geothermal energy at Naivasha, by Multilateral Investment Guarantee Agency (Miga) will double its output to 84 megawatts on securing $14 million (Sh1.12 billion).

The deal follows an understanding with the government on how to structure the securities.

“Miga has increased its coverage against the risks of transfer restriction, expropriation, and war and civil disturbance to cover an additional equity investment of $110 million for phase three of the project,” said World Bank in a statement. The plant to be completed in 2013 would support economic recovery, reduce dependency on the currently constrained hydro to geothermal sources. Kenya Power is currently rationing 90 megawatts daily in a programme that largely targets industries.

http://www.theeastafrican.co.ke/business/Kenya+could+announce+oil+find+by+the+end+of+2011/-/2560/1246682/-/3rg6u0z/-/index.html

^^same old stories though :lol:

i would not hold my breath.

The worst of cosmetic nightmares is scarring, and stretch marks are scars much too easy to come by. They are tears in the dermis, the flexible middle stratum that maintains the shape of the skin. The tearing is caused by the pulling that occurs with accelerated growth. The rapid transformations of puberty or pregnancy are common aggravators. http://stretchmarkinstitute.com/

Not holding my breath either.

The worst of cosmetic nightmares is scarring, and stretch marks are scars much too easy to come by. They are tears in the dermis, the flexible middle stratum that maintains the shape of the skin. The tearing is caused by the pulling that occurs with accelerated growth. The rapid transformations of puberty or pregnancy are common aggravators. http://stretchmarkinstitute.com/

^^:nuts:
welcome tahannaazad, but I don't get what u r up to. I guess you have misplaced ur post.

he's a spammer.he should be banned.

he's a spammer.he should be banned.

Too hard on him.Maybe he out looking for cheap advertisement.

i would not hold my breath.

where have I heard this song before?

ERC licenses five new plants to sell power
BDA (http://www.businessdailyafrica.com/Corporate+News/ERC+licenses+five+new+plants+to+sell+power+/-/539550/1247280/-/whhgm7/-/index.html)

Five new power plants have been issued with permits to enter the lucrative generation segment and unlock additional supply to the national grid.

The Energy Regulatory Commission (ERC), the sector regulator, says it has approved power buying deals for the 300 megawatts (MW) Lake Turkana Wind Power Project, 100 megawatts Aeolous Wind, and three medium speed diesel-powered plants to be stationed at Athi River and Thika with a combined capacity of 252MW.

Construction on the $750 -million (about Sh70 billion) wind energy project had been set for December following the issuance by Treasury of letters of comfort last April.

Sources said the PPA for the project would be signed in November, laying the ground for construction to begin.

Thika Power seeks to add 87 megawatts to the national grid while Gulf Power and Triumph each plan to generate 80 megawatts of power in Athi River.

The Government plans to float a tender early next year to build a liquefied natural gas terminal at its Mombasa port city as it pushes to diversify its sources of electricity to meet rising demand, a senior energy official said on Tuesday.
Chronic power blackouts and higher electricity bills are fuelling discontent as they push up living costs and cast doubts on the government’s ability to fully implement its long-term economic vision.
"We have decided to diversify our primary sources of power generation through construction of a liquefied natural gas import handling, storage and regasification facility at Dongo Kundu, Mombasa," the energy ministry’s permanent secretary, Patrick Nyoike, told a national energy conference. "The tender is expected to be floated by February 2012."
The Government says the country has installed power supply capacity of 1,460 MW, against a consumption of about 1,300 MW, leading to shortfalls when factors such as reserve margins are included.
It aims to raise this to over 21,000 MW by 2030 by developing a mix of plants powered by hydro, wind, geothermal, coal and nuclear.
Regional trade bloc, East African Community, is pushing its five member states to link up energy resources in an effort to boost the region’s energy security.
Thanks to major gas discoveries in Tanzania’s deep-water offshore region, Kenya’s southern neighbour has managed to raise its natural gas reserves to more than 10 trillion cubic feet.
Market observers complained the sector wasn’t keeping up with economic growth in east Africa’s largest economy.
"The energy sector, with all its plans, which we appreciate, is really struggling to keep pace with economic growth," Betty Maina, CEO of Kenya Association of Manufacturers.


http://www.standardmedia.co.ke/business/InsidePage.php?id=2000044112&cid=14&story=Kenya%20set%20to%20tender%20for%20gas%20terminal%20next%20year

Oops not again please..

This time they are getting it for sure!:lol:

At least Tullow and Total have big purses and there is a real belief even outside Kenyan that offshore has a realistic chance of hold a large gas reserve.

ps who's the nutter?

Bill Proposes 10 Years Jail for Transformer Vandalism
allAfrica (http://allafrica.com/stories/201110120161.html)

The Energy, Information and Communications Committee has formally introduced in Parliament a bill to criminalise the vandalism of communication and power transmission equipment.

The Energy and Communications Law (Amendment) Bill, which was introduced in Parliament and went through the formal First Reading Tuesday, introduces high fines and long jail terms for the criminals.

According to the bill prepared by the committee chaired by James Rege (Karachuonyo, ODM) the offenders will be fined Sh5 million or sentenced to prison for 10 years.

Offenders could also suffer the double punishment of serving the sentence and raising the fine if the person passing the judgement finds this fit.

The bill's main idea is to amend several laws on the protection of communications and energy apparatus from damage and vandalism by making the punishment stiffer to deter vandalism.

The bill seeks to categorise acts of vandalism as economic sabotage in addition to having a new offence titled "severing with intent to steal" in respect of telecommunications or energy apparatus.

The bill proposes to make those who make illegal connections to the electricity supply system liable to a fine not exceeding one million shillings or to a maximum term of imprisonment of one year, or to both.

Those who interfere with public lighting intentionally or use electricity improperly shall, on conviction, be liable to a fine not exceeding one million shillings, or to a maximum term of imprisonment of one year, or to both.

Passage of the amendments by Parliament will be a welcome relief for Kenya Power, who have in the past complained of losses brought about by vandalism of transformers.

Last year, the company said it had lost Sh14 million due to the theft of transformers over the preceding 10 months in Nandi District.

In November last year, a senior official at the power distribution monopoly cited illegal connections are the major cause of power blackouts in Central Rift Valley region.

The bill also seeks to punish those who interfere with transmission apparatus such as underground cables or the mobile signal boosters that dot the landscape in most parts of the country.

Interfering with transmission apparatus or accessing the contents of a private message could also attract the stiff penalties, according to the amendment Bill.

State plans larger Mombasa-Nairobi pipeline to smoothen fuel distribution
BDA (http://www.businessdailyafrica.com/Corporate+News/State+plans+larger+Mombasa+Nairobi+pipeline/-/539550/1253308/-/656pgk/-/index.html)

Kenya has moved to secure long-term fuel supplies across the country with the invitation of firms to oversee the construction of a new oil pipeline from Mombasa to Nairobi.

The new pipeline will replace the existing one, which authorities estimate has only six years of life left.

Authorities said the renewal of the pipeline is in anticipation of increased demand, but it will also provide safe movement of oil products for the next 33 years.

“We did an internal inspection last October, which shows that the existing line cannot last beyond 2017, even with repairs,” said KPC managing director Selest Kilinda.

The existing pipeline was laid in 1978 by engineering firm Zakhem, which also laid the Nairobi-Eldoret line in 1983.

About Sh8.2 billion was spent in 2008 to bolster pumping capacity at Makindu, Konza, Samburu and Manyani.

The new pipeline will run on new technology and be wider than the existing one.

The consultant will be expected to carry out a detailed engineering design, prepare tender documents, forecast demand growth and supervise the construction of the line’s enhanced diameter of between 16 inches and 20 inches from the current 14 inches.
Firms with an annual turnover of more than $750 000 (about Sh75 million) are eligible to bid.

The construction is set to begin in the second quarter of 2012 and take two years, going by the time taken when the Nairobi-Eldoret pipeline was recently relaid at a cost of Sh15 billion by China Petroleum Pipeline Engineering Corporation (CPPEC).

Heat or light ,nuclear power plan chugs on

Nuclear Electricity Project Committee chairman Ochillo Ayacko said the nuclear energy policy and nuclear electricity legislation to regulate the sector was being worked on.

The process will include visits to countries that have experience in nuclear technology and invitation of public participation.Other activities that the committee is undertaking include recruitment and training of personnel.

Five scholarships have been offered for plant operation specialists to study in Korea,while 15 students are being trained at the university of Nairobi on various aspects of nuclear technology.

He said they had also identified three Kenyans in America who have the expertise,and one in South Africa.

Mr Ayacko said about 300 senior technical personnel,400 technicians and 300 non technical staff will be needed to run a single nuclear plant.

The government will also prospect for uranium in the country,according to Mr Ayacko.If available ,investors will be encouraged to mine it,part of which will be used to drive the reactors.

-Studies by the government indicate that Korea has fairly cheaper nuclear technology,where a reactor with a capacity of 600MW could cost about $2.1 billion,compared with $2.7 billion for US and European versions.
-The country could need 16,000MW of energy by 2030 ,according to projections ,to drive local industries and meet domestic power needs.Out of this ,nuclear is expected to contribute 2,000MW .The first nuclear power reactor providing 1,000MW is expected to be ready by 2022.

Daily Nation 18th October 2011

Kenya’s emerging carbon trade to benefit from new regulations

Finance minister Uhuru Kenyatta’s 2009/2010 Budget mentioned that Kenya would establish a carbon trading exchange.

The ministry has since prepared a detailed draft National Policy on Carbon Finance and Emission Trading to guide the setting up of a legal, regulatory, and institutional frameworks for developing and managing carbon trade in Kenya. The document is awaiting Cabinet review.

The policy aims to create a carbon trade sector which will tap into international climate change finances, support sustainable development programmes, provide employment and economic diversification, increase access to innovative research and technology, improve Kenya’s balance of payments, and foster involvement of the private sector in carbon investment and trading.

The proposed legal and regulatory framework for the carbon market will no doubt provide an enabling environment to accelerate inflows of developmental and private investment funds to support local climate change initiatives. Need to create a forum for the private sector’s involvement in carbon trading recently led to the establishment of the Africa Carbon Exchange (ACX). The exchange, with headquarters in Nairobi, is designed to bring benefits of carbon markets to Africa by harnessing the vast potential of the continent.
continued (http://www.businessdailyafrica.com/Opinion+++Analysis/Kenya+emerging+carbon+trade+to+benefit+from+new+regulations/-/539548/1269488/-/item/0/-/qap5jgz/-/index.html)

Kenyan firm plans 61 MW wind power farm
BDA (http://www.businessdailyafrica.com/Corporate+News/Kenyan+firm+plans+61+MW+wind+power+farm/-/539550/1272880/-/iig2gi/-/index.html)

Kenyan firm Kinangop Wind Park Ltd plans to generate 60.8 megawatts (MW) of electricity for the national grid by harnessing renewable wind power, it said on Monday.

The east African nation relies heavily on hydroelectric dams for power, which have proved inefficient in times of drought.

Recent back-to-back incidences of low rainfall have slashed the country's hydropower production, leaving consumers with high electricity bills after producers turned to more expensive thermal power.

"The project consists of building a 60.8MW wind power park in Kinangop in order to supply additional power to the national grid," it said in a statement.

The firm said it will apply for a power generation licence from the sector regulator on Dec. 5.

Investors in the east Africa's largest economy are turning more to renewable sources such as wind and geothermal to help stabilise supplies of electricity.

Kenya has several wind power projects lined up for implementation including one for 300MW planned for the north of the country.

Lake Turkana Wind Power (LTWP) -- a subsidiary of Dutch wind power firm KP&P -- behind the 617 million euro ($873.7 million) project, said in March construction would start by December.

Kenya's main power producer Kenya Electricity Generating Company is already generating over 5 MW from wind in the outskirts of the capital.

Another firm, Aeolus Kenya, is in the process of implementing a 60MW wind power project to be located in Kinangop Plateau in central Kenya.

Kenya has set a target of 30,000 megawatt (MW) generation by 2030, the year in which it hopes to become a middle-income country.

At present it has a capacity of 1,400 MW and is slated to install another 2,000-3,000MW within the next five years.:uh:

Nock Launches Mobile Gas Top-Up
allAfrica (http://allafrica.com/stories/201111100029.html)

http://allafrica.com/img/csi/00181359_a03a967763a0f38f5d0338dc76ece987/w260x.jpg
The National Oil gas refilling plant.

You can now refill your cooking gas in quantities that you can afford. The National Oil Corporation yesterday unveiled a new Liquid Petroleum Gas filling unit at its Nairobi Industrial Area headquarters, the first of its kind to ease availability of gas and make it affordable to more people.

"Unlike a standard filling plant our facility is able to fill quantities of even 1kg of LPG into existing cylinders meaning we can provide to the consumer what the consumer wants," explained Nock Managing Director Sumaya Athumani.

The unit is also mobile and thus can be moved around various locations as per demand. With the launch of the filling plant, followed by similar mini filling units to be distributed in strategic locations within the country by January 2012, Nock said it is targeting dominance in the low and middle market niche.

Though the demand for LPG has been growing over the years, the firm noted, supply and cost constraints have made penetration into the market difficult over the years. This, Athmani noted, has given rise to illegal filling units in slum areas which are a safety hazard to the communities that are forced by circumstances to use such.

However the gas will only be filled into cylinders belonging to the firm. According to Athmani though the law now allows for various oil marketers to accept empty gas cylinders of another firm in exchange for a filled one, it still prohibits filling another firm's cylinder.

The new initiative comes amid rising cost of living and high prices of cooking gas which have forced other households to seek alternative fuels for use. A 13kg cooking gas now retails between Sh2800 up to slightly over 4000 depending on the oil marketer one uses. A year ago the price ranged between Sh1, 900 and Sh2, 800.

Hashi to Introduce Piped Gas in Homes

OIL marketer Hashi Energy has announced plans to start distributing cooking gas direct to homes through pipes instead of cylinders. The company said yesterday it is working with some housing developers to test the first piped gas by the end of next year.

When in place, piped gas will reduce the expense of buying gas cylinders and the inconvenience of refilling and hopefully reduce the cost of Liquidified Petroleum Gas for consumers.

The company which directly imports ready gas, and gets additional from the Kenya Petroleum Refinery, has put up the second largest LPG depot in Mombasa at a cost of Sh540 million. This has a storage capacity of 420 Metric Tonnes .

In Nairobi, where it is piloting the piped gas, it has a storage facility with capacity to hold 150MT. "We intend to grow further to the level of providing piped gas to our consumers in upcoming developments," said Hashi energy Chief Executive officer, Ahmed Hashi adding that the pilot project cost between Sh40-Sh70 million.

This cooking gas distribution mechanism is commonly used in Europe, Asia and America where installation of the gas pipes is done during house construction.

"We are working with some housing developers to put large gas tanks underground and the necessary systems which will save on cost of cylinders," he said during the launch of its new LPG cylinder. The private oil marketer said it has spent around Sh180 million on the cylinders .

The company also said it is exploring getting in to renewable energy and power generation. "We are carrying out research on solar energy, talking to various solar panel providers and trying to determine what it requires in terms of capital investment," said Solomon Osundwa, the firm's Commercial and Strategy director.

http://allafrica.com/stories/201111241288.html

Oh my God this (piped gas) was loooooooooong overdue.

Finding oil could be a mixed blessing. For one, there's going to be a serious cash flow into the country and not to mention Kenya will cut 25% of it's total yearly foreign expenditure. On the other hand, ugly local politics & massive corruption could rear it's ugly head like it has done for so many decades in Nigeria (and previously Angola). Uganda has yet to ship one barrel of oil and already they are at each other's throats.
Personally I would like for the country to find it because I think with the ever so elusive rain, agriculture is not a long term sustainable option. As far as the likelihood of finding hydrocarbons go, I'm almost certain there's oil around lake Turkana. Only time will tell.

Kenya to start wind power production late 2012
BDA (http://www.businessdailyafrica.com/Kenya+to+start+wind+power+production++late+next+year+/-/539546/1287696/-/item/0/-/w1dgu1/-/index.html)


A financing deal for Kenya’s largest wind power farm will be concluded in the first quarter of next year, its sponsors said, setting East Africa’s largest economy on the path to becoming the region’s leader in renewable energy.

Mr Carlo Van Wageningen, the chairman of Lake Turkana Wind Power, told participants at the climate change talks in Durban that conclusion of the deal paves the way for the €600 million plant to produce the first 50 megawatts (MW) of electricity in the third quarter of next year before rising to full capacity a year later.

“We expect to close the financing deal in March or April 2012 and to have full production of 300 MW a year later,” he said in a presentation to showcase the project in Durban.

The announcement comes a year after the Treasury offered the financiers guarantees they had sought against political and other risks.

The Turkana wind power company hopes to produce electricity at the cost of €7.52 cents per kilowatt hour making it the cheapest power source in Kenya.

Once completed, it is expected to account for 22 per cent Kenya’s electricity demand, in addition to the 400MW geothermal power that is expected to be on the national grid in the next four years.

Together with hydro-electric power that already accounts for more than 70 per cent of Kenya’s electricity needs, these two projects are set to make the country nearly 100 per cent dependent on environmentally-friendly energy sources and to smooth out fluctuation in output from hydro sources.

“Hydro, wind and solar complement each other,” said Vestas grid expert Eric Sorensein. The government through the Kenya Electricity Transmission Company (Ketraco) has advertised tenders for construction of a 428 km power line and four substations to link the wind farm that is located in remote but windy Loiyangalani area to the national grid.

Lake Turkana Wind Power plans to build at least 353 wind turbines. Each unit, to be procured from the world’s top marker of wind turbines, Vestas Wind Systems of Denmark, has the capacity to produce 850 KW of electricity.

Kenya to import Ethiopian energy

Daily Nation (http://www.nation.co.ke/business/news/Kenya+to+import+Ethiopian+energy+/-/1006/1288422/-/ypkis3/-/index.html)

Kenya will sign a power purchase agreement today with Ethiopia that will kick-off a massive project that will see the country get an additional 400MW by 2016.

Speaking on Monday at Safari Park Hotel, Energy minister Kiraitu Murungi said the project will cost Sh64 billion, with Kenya constructing a 612 kilometres high voltage line and Ethiopia 443 kilometres on its side of the border.

The line will have the capacity to transmit 2000MW. “We are discussing how to transmit 400MW from Ethiopia to Kenya through high voltage line stretching 4000 kilometres. Its an expensive project that will cost us Sh64 billion,” the minister said

Energy permanent secretary, Patrick Nyoike said the funding of the project was already secured from the World Bank, African Development Bank and French Agency for Development and implementation would start immediately the discussions with Ethiopia are completed.

“Our timetable is to have the project completed by 2016, but we could have it much earlier.” the PS said.

Ethiopia’s minister of water and energy, Mr Alemayehu Tegenu said the discussions on pending issues like power purchase will be concluded adding Kenya’s line will be important in enhancing interconnection with other African states.

He said Ethiopia was developing a 8000MW power source, and currently had 2000MW to sell to other states.

“Kenya will be important to power interconnection in the region. We are going to commit 400MW for Kenya and this could be increased in future,” he said.

So let's see Lake Turkana will provide 300MW fully by the end of 2013, geothermal will add another 400MW in 3 years, and this deal with Ethiopia will see another 400MW. That's 1,100MW in all in 5 years time. Not including other projects in the country or energy supplied by Tanzania. Power outages could become a thing of the past in Kenya & the entire region.

The Kenyan Government has selected China’s Fenxi Mining Group to develop coalmines in its Eastern Province, where production is expected in the next three years, the chief geologist at the Ministry of Energy said on Monday.
Government received interest from 16 firms last year when it started the search for a company to mine the coal, whittling them down to 11 firms, seven of which eventually submitted their bids.
"Two bids that were submitted by Fenxi for block C and block D were the most financially and technically compliant," John Omenge said.
"The coal is for local use... for block C, we expect the mine to be running within two and a half years from the start of concession."
Fenxi will pay the government $3 million (Sh270 million) for block C and $500,000 (Sh45million) for block D, in return for a renewable concession of 21 years, subject to approval by Parliament, Omenge said.
Substitute imports
It will also allow the Government to have an 11 per cent participation in the project, sharing gross revenues at a rate of 23.6 per cent for block C and 21.1 per cent for block D, he added.
The country is hoping that coal from the Mui basin, where block C is estimated to contain a minimum of 400 million tonnes, will help it to save foreign exchange through substitution of coal and oil imports.
Some of the coal will go to the cement and steel industries, which import coal worth Sh3.6 billion a year, and the rest will be used for energy generation, helping to fill a gap that is usually filled by diesel-fired, thermal plants.
Officials plan to construct a 600-megawatt coal plant at the Coast, which will initially use imported coal and then local coal when production from the Mui project kicks in.
Another power plant will be constructed in the area to utilise the coal, Omenge said, adding that a cement factory will also be put up in the area.
"With coal mining, the limestone there becomes very economically viable," he said, adding that Government will invite bids for development of the remaining coal blocks, A and B, before the end of this month.

http://www.standardmedia.co.ke/business/InsidePage.php?id=2000048237&cid=14&story=Government%20picks%20Chinese%20firm%20Fenxi%20for%20coal%20mining

Wind power investors to earn Sh26bn from Turkana project
BDA
(http://www.businessdailyafrica.com/Wind+power+investors+to+earn+Sh26bn+from+Turkana+project+/-/539546/1291574/-/128s2r9z/-/index.html)
The Sh75 billion Lake Turkana Wind Power consortium—the largest single private investment in Kenya’s history — will earn Sh26 billion (€200 million) over its lifespan, the sponsors have said.

The plant has been registered with the United Nations Framework Convention and the income will be shared with the government and the community.

http://www.theeastafrican.co.ke/business/Kenya+could+announce+oil+find+by+the+end+of+2011/-/2560/1246682/-/3rg6u0z/-/index.html

^^same old stories though :lol:

There's big potential for oil find but the lead time required for mapping & interpreting the data wouldn't allow anything this year.If the drilling scheduled for mid 2012 goes well there's "world class" potential of finding anywhere from 1bn barrels to as high as 10b barrels.

http://img535.imageshack.us/img535/6127/mbawa.png (http://imageshack.us/photo/my-images/535/mbawa.png/)

Uploaded with ImageShack.us (http://imageshack.us)
Some data from Pancontinental petroleum's website-www.pancon.com.au

http://img10.imageshack.us/img10/961/oil2012.png (http://imageshack.us/photo/my-images/10/oil2012.png/)

Uploaded with ImageShack.us (http://imageshack.us)

double post.

Not holding my breath either.

These oilmen are holding their breath though.

http://img706.imageshack.us/img706/6301/gasi.png (http://imageshack.us/photo/my-images/706/gasi.png/)

Uploaded with ImageShack.us (http://imageshack.us)

http://img202.imageshack.us/img202/7785/oiloil.png (http://imageshack.us/photo/my-images/202/oiloil.png/)

Uploaded with ImageShack.us (http://imageshack.us)

Good luck.

10bbl would be more than Sudan and Norway, and in the same league as Algeria... Not quite Angola, but close.

Anthony Kiptoo Ng'eno

Age: 38
Hobbies: Travelling, swimming, reading and listening to music
-Studied Computing and IT at the Open University in the UK
-Worked on the Asian Sky Project in London
-Trained as a windpower installer with US-based firm Bergey
-Co-founded Winafrique Technologies Ltd in 2001
-Winafrique has won several green awards, including the Bloomberg New Energy Finance Pioneer in 2011

Many things may be lacking in Africa but there are two which are abundant and free all over the continent - wind and sunlight - and Kenya's Anthony Kiptoo Ng'eno decided to turn them into a profit.

In 2001 he and his partner Michael G Chavanga formed a company, Winafrique Technologies Ltd, with the goal of taking advantage of the opportunities offered by the renewable energy market in East and Central Africa.

"When we started off the company, we were given a very difficult challenge of powering a very remote site, and we quickly realised that conventional power could not reach where this project was going to happen and diesel engines were also going to be very expensive, so we started looking at renewable energy," Mr Ng'eno told the BBC's series African Dream.

"We quickly got training from China, Hong Kong and the US on how to design, supply and maintain, and we met quite a few people - consultants, engineers - who also helped us build the company along the way," he said.

"Once we recognised that there was that niche, it was just pure focus. We knew we could do it, and we just went after it".

Winafrique's main investment has been in wind-solar hybrid energy but it also works on water pumps and energy storage.

The company offers its services to private clients and to governments, aid agencies and businesses.
Green pioneer

So far the company has installed more than 150 hybrid power systems in different parts of Kenya. Winafrique is also in charge of their maintenance.

The company has established partnerships with Safaricom, the country's main mobile telephony firm, and with the low-energy computer provider Inveneo, among others.

It has also worked with the International Committee of the Red Cross to provide wind and solar power to a water desalination plant in Lamu, on the Kenyan coast.

Winafrique's work and its positive environmental impact have not gone without recognition.

In 2009 it was the winner of a Green Telecoms Award at the AfricaCom conference in South Africa, in 2010 it was chosen as the Best Green LTE Product or Initiative at the LTE World Summit in the Netherlands, and in 2011 the company was recognised as a Bloomberg New Energy Finance Pioneer.

"I have a passion for green energy as it is one of the technological leaps that will allow Africa to address its development challenges," Mr Ng'eno said.
Surprised looks

The entrepreneur, who previously worked in London and has a degree in Computing and IT from the Open University in the UK, said that getting initial funding for Winafrique was not easy.

"It was a start-up, a completely new idea, a new concept, so there was a lot of resistance, a lot of surprised looks when we introduced ourselves for what it is and what we are doing," he told the BBC.

"The business side of it was very difficult because nobody had done it before, specifically the way we were going to look at it. There was no track record for anybody to follow so everything was purely first time.

"You go into a bank and you have to negotiate from zero, you have to sell them the idea of what it is that you're doing before they can finance the idea. It was a very engaging process and it has taken us up to today".

But he admitted that he could have helped to kick-start his company by writing a better business plan.

"I think that's what we needed, a more aggressive business plan, more engagement of finances, probably, I think those are the two main issues."

Does he have any advice for younger entrepreneurs?

"Hard work, hard work, hard work, and you also have to focus the hard work - you have to have a strategy," he said.

"You have to have a product, and be organised, all the way from your internal organisation to your financial organisation to the structure of your company." bbc (http://www.bbc.co.uk/news/world-africa-16451300)

http://www.bloomberg.com/video/84367840/ brace yourselves

We African Countries need to start focusing away from Oil/mineral resources.Look at World's biggest economies:- US,Japan,China,UK,Germany etc...does not do this oil extraction in their own territories,meaning economies can be build without these fucking minerals..they bring conflicts....see DRC,Angola,Sudan.lol
It depends. How about Middle Eastern countries depending and managing their oil so well?

We African Countries need to start focusing away from Oil/mineral resources.Look at World's biggest economies:- US,Japan,China,UK,Germany etc...does not do this oil extraction in their own territories,meaning economies can be build without these fucking minerals..they bring conflicts....see DRC,Angola,Sudan.lol


does not do this oil extraction in their own territories,...they bring conflicts....see DRC,Angola,Sudan.

....they dont extract in their own territories, but they extract from other countries' territories, and cause an endless conflicts to those territories....LIbya, IRAQ, DRC, SUDAN, AFganistan.....all the richest and the biggest oil companies belong to them.

in fact, resources are worthy, reason why, thousands of their own men have died on those territories. lets keep on searching, and lets keep them way from us.

:cheers:

....they dont extract in their own territories, but they extract from other countries' territories, and cause an endless conflicts to those territories....LIbya, IRAQ, DRC, SUDAN, AFganistan.....all the richest and the biggest oil companies belong to them.

in fact, resources are worthy, reason why, thousands of their own men have died on those territories. lets keep on searching, and lets keep them way from us.

:cheers:

How do you "keep them away" if it's THEIR companies doing the exploration?

3D Seismic shooting offshore is done.Now its data interpretation and drilling later in the year.

http://img100.imageshack.us/img100/9643/bggroup.png (http://imageshack.us/photo/my-images/100/bggroup.png/)

Uploaded with ImageShack.us (http://imageshack.us)

How do you "keep them away" if it's THEIR companies doing the exploration?

…by introducing a balanced distribution, and reject all forms of social division.

..so simple!



:cheers:

3D Seismic shooting offshore is done.Now its data interpretation and drilling later in the year.

http://img100.imageshack.us/img100/9643/bggroup.png (http://imageshack.us/photo/my-images/100/bggroup.png/)

Uploaded with ImageShack.us (http://imageshack.us)

The Mbawa project seems very promising. If the consortium finds oil, the Chinese company CNOOC that had virtual exclusive offshore drilling rights and walked away after fruitless attempts will be sorely disappointed.

It looks like getting a substantial amount of these minerals is a very huge task especially when you focus on it for a long time and you get nothing in return like CNOOC.

The Mbawa project seems very promising. If the consortium finds oil, the Chinese company CNOOC that had virtual exclusive offshore drilling rights and walked away after fruitless attempts will be sorely disappointed.

CNOOC never had exploration acreage offshore but in the interior around Marsabit.
Yes,indeed the Mbawa prospect is very promising especially with the reported oil slicks on the ocean floor and very huge by any standard.But so is Kifaru.We'll know by the end of Q3, 2012.

These guys are already here.Is hard to get rid of them.See Gadaffi got rid of them for long time....What happened later?Now Libya will never be what it was before.

…by introducing a balanced distribution, and reject all forms of social division.

..so simple!



:cheers:

CNOOC never had exploration acreage offshore but in the interior around Marsabit.
Yes,indeed the Mbawa prospect is very promising especially with the reported oil slicks on the ocean floor and very huge by any standard.But so is Kifaru.We'll know by the end of Q3, 2012.

My mistake, I thought they had off-shore licenses around the Lamu area. I'm surprised they didn't try to buy into one of those projects... or they might have tried and got turned down. I've always said, the region around Lake Turkana will be the first to produce oil moreso than Isiolo. We'll see. I'm keeping my fingers crossed.

Africa Oil Spuds Ngamia-1 Well in Kenya
VANCOUVER, BRITISH COLUMBIA, Jan 25, 2012 (MARKETWIRE via COMTEX) -- Africa Oil Corp. ("Africa Oil" or the "Company") /quotes/zigman/479790 CA:AOI +4.14% (omx:AOI) is pleased to announce the spudding of the Ngamia-1 well on Block 10BB, Kenya. Tullow Oil plc is the operator with a 50% working interest and Africa Oil holds the remaining 50%. Please see attached map: http://media3.marketwire.com/docs/AOI0125.pdf

The Ngamia-1 well will be drilled to a projected depth of 2,700 meters to test the oil potential in Miocene age sandstones. The well is located in the Lokichar basin, a north-south trending rift basin that is part of the East African Rift System. Live oil was encountered in the Lokichar basin by the Loperot-1 well which was drilled in 1992 and recovered 29 degree API crude from Miocene sandstones.

The Ngamia-1 well will test a prospect that is similar to oil prospects drilled by Tullow and its partners early in the exploration efforts in the Lake Albert Rift Basin of Uganda. Drilling and evaluation of the well is expected to take between 60 and 90 days. A number of prospects and leads have been mapped and would be prospective following a success of the Ngamia prospect. The Ngamia-1 will be the first well drilled on the block by the partnership and will mark the start of a multi-well drilling program in Block 10BB and adjacent blocks.

Keith Hill, President and CEO of Africa Oil, commented, "We are very excited to be drilling our first well with Tullow. They've had enormous success with the Lake Albert Rift Basin project where in excess of 1 billion barrels have been discovered and this shares many geological similarities with our Kenyan assets. Our Ngamia prospect could be a play opener for another great success in the region."

- Source: Tullow presentation - P50 Discovered and Prospective

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Mali as well as Puntland (Somalia) through its 51% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 300,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighbouring Uganda. Similar to the Albert Graben play model, Africa Oil's concessions have older wells, a legacy database, and host numerous oil seeps indicating a proven petroleum system. Good quality existing seismic show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".

http://img810.imageshack.us/img810/9977/afren.png (http://imageshack.us/photo/my-images/810/afren.png/)

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Afren to start drilling eploratory well in June 2012.

Should try drilling in lake Victoria region

Should try drilling in lake Victoria region


They should, just what i have been thinking!! There is a particular area in the Lake Victoria region which is rumoured to have oil. Rumour also has it that the reason why Museveni is fighting over Migingo is because of the oil potential. He claims that 'Migingo Island is Kenyan but the waters belong to Uganda'. Museveni is not saying that for the sake of saying it.

Anyway, they obviously need more evidence than the above reasons (read: rumours) stated :lol:, but i wish they would try other regions than the ones they have been trying.

The precious sweet dark matter....

kenya+oil= no bueno(in my view, atleast as of right now)

General Electric launches 100MW wind power plant
http://www.businessdailyafrica.com/General+Electric+launches+100MW+wind+power+plant++/-/539552/1316116/-/dkufj6/-/index.html

American multinational General Electric’s power generating subsidiary GE Energy is planning to set up a 100 megawatt wind farm in Ngong showing growing international interest in Kenya’s lucrative electricity sector.

The power plant is expected two be in operation in two years, about the same time that the 300MW Lake Turkana Wind Power, promoted by a consortium of local investors, is set to be completed.

People involved in the project say that GE will fund the power plant whose construction is ongoing, making Kipeto Energy one of the single largest foreign direct investment in the energy sector.

“This project (Kipeto Energy) is fully owned by GE but a local firm is handling its construction,” said a source who requested anonymity because he is not authorised to speak on behalf of the American firm.

Experts in the energy sector estimate that the project will cost the New York-listed company over Sh25 billion ($300 million). The venture will also enable GE to tap into the carbon trading from the generation of clean energy. A carbon credit is currently priced at Sh450 (4 euro).

General Electric launches 100MW wind power plant
http://www.businessdailyafrica.com/General+Electric+launches+100MW+wind+power+plant++/-/539552/1316116/-/dkufj6/-/index.html

Ngong is where everyone wants to set up camp

Gamesa And Iberdrola Ingeneria Secure 13.6 MW Wind Farm Contract In Kenya
http://www.constructionkenya.com/wp-content/uploads/2011/01/wind-firm-ngong.jpg

•Plant to be located in Ngong, some 30 kilometres from Nairobi
•The new plant, to be built within 18 months, will have 16 G52 turbines and will be financed with Spain’s development aid fund (Fondos de Ayuda al Desarrollo or FAD)
A consortium formed by IBERDROLA INGENIERÍA (40%) and Gamesa (60%) has been awarded the contract to build a 13.6 MW wind farm in Kenya for €20 million. The new facility will be located in Ngong, about 30 kilometres from Nairobi, with construction expected to be completed within 18 months.

This turnkey project was awarded by Kenya’s national power company, Kenya Electricity Generating Company Limited (KenGen), and includes the engineering, supply, construction and commissioning of the wind farm. Called ‘Ngong II’, the farm will have 16 Gamesa G52 turbines and will be financed with Spain’s development aid fund (Fondos de Ayuda al Desarrollo or FAD).

IBERDROLA INGENIERÍA, which in recent years has become the group’s technological core, has had operations in Kenya since 2006. It has a sales office in the country’s capital, Nairobi, manned by staff relocated from Spain.

Between then and the end of 2009, it carried out a project entailing the automation of KenGen’s hydro plants and the construction of a control centre for this company. The project implied significant technology transfer for Kenya and extensive training periods for Kenyan workers.

For Gamesa it meant the company’s arrival in Kenya, in line with its strategy of penetrating new markets and customers. Planning to stay in Kenya over the long term, the IBERDROLA subsidiary is currently considering participating in more wind projects, as well as other projects related to power networks and geothermal plants.

About IBERDROLA Ingeniería y Construcción (www.iberdrolaingenieria.com)

IBERDROLA Ingeniería y Construcción, a wholly-owned subsidiary of IBERDROLA headquartered in Erandio (Vizcaya), is the world’s third largest energy engineering company by turnover from foreign business and the biggest in the Spanish power sector. It has projects in over 30 countries in Europe, Africa, the Americas and the Middle East, and its activities include engineering for the power generation and transmission sectors, both traditional (e.g. nuclear, combined cycled gas-fired) and renewable (mainly wind).

In Africa, the company upgraded Tunisia’s power grid between 2004 and 2009 after winning a contract put out to tender by the country’s public utility, Societé Tunisenne d’Electricité et du Gaz, to automate the country’s distribution infrastructure. In Algeria, it is currently building a 2,100 MW combined-cycled plant in Koudiet, developed in a consortium with GE after winning a tender involving a contract signed in January 2008 worth €1,470 million.

About Gamesa (www.gamesacorp.com)

With over 15 years of experience, Gamesa is a world leader in the design, manufacture, installation and maintenance of wind turbines and has installed nearly 20,000 MW in 26 countries on four continents.

The company is also a global benchmark in the market for the development, construction and sale of wind farms, with more than 3,500 MW installed and a wind farm portfolio totalling 22,000 MW at varying stages of development in Europe, America and Asia.

With 30 manufacturing facilities in Europe, the US, China and India and 4,400 MW of annual manufacturing capacity, Gamesa has an international workforce of more than 7,000 people.

There was a project in Turkana to install the wind turbines, I dont know how the development is going on though.

NOCK has set up core and drill cuttings, storage facilities,rock samples retrieved during exploitation is available in the archieve since 1990.
According to the data available on the National oil corporation of Kenya websites shows that the Loperot-1 well penetrated a lacustrine source rock with high Total organic Carbon content(TOC) and water was recovered.On a Repeat Formation Test(RFT) from Miocene Sandstone interval waxy was oil discovered in 1990. This show there is oil in Kenyan soil but not really exploited.

Read more: http://digitaljournal.com/blog/15115#ixzz1mW8wH58C

They should, just what i have been thinking!! There is a particular area in the Lake Victoria region which is rumoured to have oil. Rumour also has it that the reason why Museveni is fighting over Migingo is because of the oil potential. He claims that 'Migingo Island is Kenyan but the waters belong to Uganda'. Museveni is not saying that for the sake of saying it.

Anyway, they obviously need more evidence than the above reasons (read: rumours) stated :lol:, but i wish they would try other regions than the ones they have been trying.

Interesting

They should, just what i have been thinking!! There is a particular area in the Lake Victoria region which is rumoured to have oil. Rumour also has it that the reason why Museveni is fighting over Migingo is because of the oil potential. He claims that 'Migingo Island is Kenyan but the waters belong to Uganda'. Museveni is not saying that for the sake of saying it.

Anyway, they obviously need more evidence than the above reasons (read: rumours) stated :lol:, but i wish they would try other regions than the ones they have been trying.

:yawn::yawn:

:cheers1:

They should, just what i have been thinking!! There is a particular area in the Lake Victoria region which is rumoured to have oil. Rumour also has it that the reason why Museveni is fighting over Migingo is because of the oil potential. He claims that 'Migingo Island is Kenyan but the waters belong to Uganda'. Museveni is not saying that for the sake of saying it.

Anyway, they obviously need more evidence than the above reasons (read: rumours) stated :lol:, but i wish they would try other regions than the ones they have been trying.

Many factors as to why drilling around lake Victoria is a sensitive issue:

1. The natives around that region are hard pressed for land and are not willing to give up their homeland for good just in case the project is productive or not. Remember, if that project goes ahead, the displaced people would have to wait for decades if not a century before they can return/reclaim their former home. Case in point, the people in the region who wouldn't give up land for a dam to be built. (We are talking about hundreds of square Hectares vacated)

2. Politics. If God-forbid oil is discovered, the political turmoil would be cranked up a notch or two in successive electoral sessions: (Read; violence & secessionist propaganda)

3. Established livelihoods. Most people living around lake Victoria depend on the water body for sustenance. Buying them out is just not enough. You would need eminent domain laws to relocate them. Politicians around the area would feast on such legislation to push for secession.

Lastly but hardly the least;

4. Kenya would summarily have to declare war on Uganda to protect her boundaries legislated by colonial & internationally recognized powers. Museveni has repeatedly stated that the lake Victoria boundaries should be decided and agreed upon by the neighbors going back to pre-colonial days and not by the UN recognized lines.

Be ready folks... harsh times lie ahead unless Museveni is deposed within the next 3-6 years.

Many factors as to why drilling around lake Victoria is a sensitive issue:

1. The natives around that region are hard pressed for land and are not willing to give up their homeland for good just in case the project is productive or not. Remember, if that project goes ahead, the displaced people would have to wait for decades if not a century before they can return/reclaim their former home. Case in point, the people in the region who wouldn't give up land for a dam to be built. (We are talking about hundreds of square Hectares vacated)

2. Politics. If God-forbid oil is discovered, the political turmoil would be cranked up a notch or two in successive electoral sessions: (Read; violence & secessionist propaganda)

3. Established livelihoods. Most people living around lake Victoria depend on the water body for sustenance. Buying them out is just not enough. You would need eminent domain laws to relocate them. Politicians around the area would feast on such legislation to push for secession.

Lastly but hardly the least;

4. Kenya would summarily have to declare war on Uganda to protect her boundaries legislated by colonial & internationally recognized powers. Museveni has repeatedly stated that the lake Victoria boundaries should be decided and agreed upon by the neighbors going back to pre-colonial days and not by the UN recognized lines.

Be ready folks... harsh times lie ahead unless Museveni is deposed within the next 3-6 years.

I agree with most of your points. About tha natives being hesitant to give up their land, unfortunately, the govt/NGO's/ Private CO's have not always put the local's interest at heart, case in point, the river yala saga.

On the Museveni issue, I am prolly being paranoid but attimes I feel like that sick man dreams of annexing part of western kenya (read Luo Nyanza).

Overall I guess we all want this oil discovery thing to happen when Kenya is politically and (economically) mature, not now.

Somalia has a lot of oil. Kenya has oil. So do Mozambique, South Sudan, and Uganda... All of these countries are on the Indian Ocean side of Africa, which is very likely the last great non-frozen, land-based pool of hydrocarbons on earth.

All of these countries are on the Indian Ocean side of Africa, which is very likely the last great non-frozen, land-based pool of hydrocarbons on earth.

The global oil major ENI found $800 billion worth of natural gas off the coast of Mozambique last month.

BG Group (BG) found 4 trillion cubic feet of gas there as well. That's more natural gas than is in Norway.

The Race is On

Chevron is planning to invest $250 billion in East Africa exploration and development.

Cove Energy (COV.L), a small company I recommended to readers of my Crisis & Opportunity, found a mother lode of natural gas just offshore in shallow water.

Cove recently got a buyout offer from Royal Dutch Shell (RDSA)...

A $1.6 billion buyout offer.
The stock was up 25% yesterday alone, but Cove has yet to accept this offer. They are waiting on bids from Exxon (XOM), among others.

According to Bloomberg:

East Africa's fields offer a fresh source of gas supply for China and India, the world’s fastest-growing major economies. Demand for LNG in Asia is rising at almost 20 percent a year, outstripping the pace of production growth. Prices in the region reached a record in November.

I've been telling you to buy energy stocks on the Indian Ocean coast of East Africa for about a year now.

Three of these stocks have gained more than 100% in the past six months, but they are about to go higher...

Much higher.


http://markets.financialcontent.com/pennwell.ogj/news/read/20705242/seals_invade_somalia

A New York Stock Exchange listed independent oil firm has signed a deal for a large chunk of three exploration sites, highlighting growing interest by foreign firms in search of the product locally.

Camac will acquire a 90 per cent stake in each of the blocks – one of them being at Lotikipi near the Ugandan border and two more in Lamu basin. The remaining 10 per cent stake will be held by the Kenyan government.

The discovery of oil in Uganda and Mozambique, countries with similar geological structures, has put Kenya on the radar of major oil explorations sparking acquisitions and mergers in the scramble for oil blocks.

“Not only is Kenya home to some of East Africa’s most prospective basins, but the awarded Blocks are adjacent to those owned by proven explorers Tullow, Apache, and Ophir,” said Kase Lawal, the CEO of Camac Energy in a statement. “Furthermore, with this agreement Camac Energy will enter East Africa on its preferred terms as an operator with the ability to control the pace of exploration.”

The purchase agreement sets the stage for negotiations on production sharing contracts and payment of acquisition fees to the Kenyan government.

The first of the Lamu basin sites, Block L1B, is 1,699 square kilometres onshore and 89 square kilometres offshore at the country’s southeast coast. The second part of this same block is entirely onshore in the Lamu basin in an area covering 12,197 square kilometres and is located near the fractious Somali border.

Camac will also get its hands on Block 11A, which covers an area of 10,913 square kilometres onshore in the Lotikipi basin of northwest Kenya near the Ugandan border. This block is located adjacent to four Tullow blocks while the L1B block is close to two Vanoil Energy-operated blocks – some of the two top companies already prospecting for the product in the country.

The entry of such multinational prospectors with greater financial muscle has seen smaller players like Cove, Origin Oil, and Pancontinental either exit the scene or remain with minority interests through buyouts.

BG Group acquired two blocks in Lamu in May last year while Apache Oil acquired a stake from Origin Energy.

French multinational Total also acquired a 40 per cent stake in five blocks within the Lamu Basin from Anadarko Kenya Company Cove Energy with the brief of accelerating exploration work that was burdensome to the twin firms.

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Two firms in joint venture to drill for oil near Lodwar
These stake claims on Kenya’s exploration business has led policymakers to believe that the country could strike oil in coming months. The formal signing of the production sharing contracts is scheduled to take place within the next 30 days.

The country is yet to strike oil despite increased exploration work in recent years; this has been blamed on lack of resources by small independent explorers who have been holding their licenses for speculation.

-Agencies

^^ The vultures are circling the carcass. One of my friends told me recently about how the British are subtly getting involved with the MRC in the coast region. The only explanation to this would be that the Brits would have an easier time securing any found hydrocarbon finds to their advantage from a young break-away country/nation by siding with their secession agenda.
Kenyan leadership has no one to blame but themselves. They let unscrupulous agents steal land from the coastal dwellers for their own benefit in terms of mega bribes.
I'm sure all the European oil prospecting companies has/have advised their government of the untapped oil reserves in East Africa. Get ready for unsolicited grants & loans to regional entities to secure the oil fields.

Kenyan firms to invest $930m in power
http://www.theeastafrican.co.ke/business/Kenyan+firms+to+invest+US+dollars+930m+in+power+/-/2560/1334740/-/47kl2t/-/


Kenyan owned firms have lined up $930 million for the generation of 457 Megawatts of electricity from wind and solar as the country seeks to reduce reliance on the expensive hydro power.

Gitson Energy Ltd backed by Kenyans in the diaspora has a capital expenditure of $830 million and Bluesea Energy Ltd is investing over $100 million to avail affordable electricity upon completion of various projects.

Gitson plans to build a 300MW wind farm and 50MW solar plant at Bubisa in Marsabit while Bluesea Energy Ltd has projects for 40 MW in Isiolo, sevenMW in Belgut and 60 MW at Lambwe Valley to utilise wind.


Gitson will use US backed technology equipment for the wind farm and solar plant project to qualify for funding from EximBank and Overseas Private Investment Corporation.

Bluesea’s lead engineer, Sam Ochieng said projects at Ntumburi in Isiolo, Lambwe Valley and Belgut are at various phases of implementation and work at the first site is expected to be complete in November.

Installing of a wind mast and other facilities at Nthumburi and Belgut will be complete by November this year.

Construction work at Lambwe Valley will be finished in February 2013 and all the sites linked to the national grid.

So let's see Lake Turkana will provide 300MW fully by the end of 2013, geothermal will add another 400MW in 3 years, and this deal with Ethiopia will see another 400MW. That's 1,100MW in all in 5 years time. Not including other projects in the country or energy supplied by Tanzania. Power outages could become a thing of the past in Kenya & the entire region.

My initial projections are off by 557MW, I found some new info:


From: UN commend Kenya plan to build solar transmission line

The data shows additional generation projects started last year (2011) will generate 1,657 MW by 2013.

Out of this amount, 705MW is expected to come from wind energy.
http://www.coastweek.com/3507_solar.htm

So let's see Lake Turkana will provide 300MW fully by the end of 2013, geothermal will add another 400MW in 3 years, and this deal with Ethiopia will see another 400MW. That's 1,100MW in all in 5 years time. Not including other projects in the country or energy supplied by Tanzania. Power outages could become a thing of the past in Kenya & the entire region.
I agree!

KenGen seeks funds for Isiolo power plant

http://www.capitalfm.co.ke/business/2012/02/kengen-seeks-funds-for-isiolo-power-plant/

The Kenya Electricity Generating Company (KenGen) is mulling a move to the capital markets to raise funds for the construction of a wind plant in Isiolo.
Managing Director Eddy Njoroge explained that the proposed plant is still in the design stage and as such would not divulge finer details of the project such as the capacity of the facility and how much it would cost to put it up.

It is estimated that a 100 Megawatts (MW) wind plant would cost approximately Sh16.5 billion or $200 million to construct.

“We are hoping that we will be able to start the Isiolo wind (plant) this year and we will therefore be looking for funding. We will be looking at a joint venture or a BOT (Build Operate and Transfer initiative), ” Njoroge added.

Going by the company’s success in 2009 where it raked in Sh26.6 billion against a target of Sh15 billion from the debt capital market, the MD exuded confidence that they would be able to replicate this performance regardless of which financing model they choose to raise the additional funds.

The firm completed the feasibility studies in December 2011 even as it continues to undertake wind measurements in 12 sites including in Bubisa, Marsabit, Naivasha and Kinangop.

Kenya Power sinks Sh1 billion into new power lines, sub-stations

http://www.standardmedia.co.ke/business/InsidePage.php?id=2000052238&cid=14&story=Kenya%20Power%20sinks%20Sh1%20billion%20into%20new%20power%20lines,%20sub-stations
Power distributor Kenya Power has invested Sh1 billion in expanding distribution facilities to meet growing demand for electricity.

Kenya Power Managing Director Eng Joseph Njoroge said the funds have been committed in building power lines and sub-stations in various parts of the country.

He said the facilities will enable the company meet electricity demand that is currently peaking at 1,215 MW compared to 1,194 MW at the end of June last year.

He said energy distributor aims to increase the number of Kenyans with access to electricity from 1.9 million to about 3 million by 2015.

He reported that by end of June last year, a total of 35 distribution system reinforcement projects and upgrade projects valued at Sh9.6 billion, were at various stages of completion in different parts of the country.

KenGen gets land for new coal facility
http://www.businessdailyafrica.com/Corporate+News/KenGen+gets+land+for+new+coal+facility+/-/539550/1359128/-/994ccwz/-/index.html


KenGen’s 300 megawatts coal plant project moved closer to reality after the government secured alternative land in Kilifi.
The initial site for the plant in Mombasa had been termed unfit because it was on a flight path.

The government has indicated in the latest Kenya Gazette that it will buy 400 acres through compulsory acquisition to build the coal fired plant that has been on radar since 2009

“A coal plant of this capacity is relatively complex to construct and it would take up to four years before any generation begins,” said Kaburu Mwirichia, the director general of the Energy Regulatory Commission.

The coal-fired plant will be build on a joint venture basis with the winning bidder owning a 60 per cent stake. KenGen will own the rest of the plant but they could raise their stake to 49 per cent.

The initial contract had been awarded to a South Korea firm, Daewoo Engineering & Construction Company Limited. We could not confirm if firm still held the contract for the Kilifi plant by time of going to press.

KenGen gets land for new coal facility
http://www.businessdailyafrica.com/Corporate+News/KenGen+gets+land+for+new+coal+facility+/-/539550/1359128/-/994ccwz/-/index.html

Hard to believe that UNEP hasn't lodged a formal (or otherwise) complaint to the proposed/planned fossil fuel based energy source project. These are the same guys that got all riled up when Kenya floated the idea of building a nuclear power station to subsidize it's energy consumption.

^^coal is cheaper and doesn't have as many threats associated with it.

Wednesday, February 15, 2012

Truly Local Power: African Wind Turbines Built From Scrap

Source: FastCo.Exist



Solar power has become the clean energy source du jour for the developing world, and for good reason--it’s relatively inexpensive and many solar panels are robust. But solar panels are often shipped internationally (or at least from distant locations), which makes them less than ideal, especially if a part needs to be fixed or replaced. Access:energywants to bring a different kind of renewable energy--wind power--to Kenyans by teaching them to make their own turbines out of scrap metal and car parts.

Over 80% of Kenya’s population (about 30 million people) lacks access to electricity. The easiest way to get that power to residents is to teach them to make it. So Access:energy--a division of the Access:collective, which invests in appropriate technologies for East Africa--is teaching local Kenyan technicians to build the Night Heron wind turbine--a product that the organization calls the first "commercially viable, zero-import wind turbine."

The turbine generates power at two to three times lower cost than equivalent solar PV panels, can generate enough power for 50 rural homes (about 2.5 kWh per day), and, most importantly, can be built using locally sourced materials. The Night Heron turbines can also be laid out in modular arrays to accomodate growing need.

The uses are virtually endless: allowing people to charge mobile phones from home, giving clinics enough power to keep vaccines cool, providing non-polluting (read: non-kerosene) light for kids who want to study, and providing refrigeration for fishermen.

By teaching locals to build the turbines, Access:energy creates skilled jobs and breeds energy independence at the same time. It’s a big mission, but the organization is making progress. Access:energy recently announced that its first customer had put down money for a wind-powered "energy hub" for his house. Another energy hub is beingbuilt for a community radio station. And Access:energy has raised over $15,000 on anIndieGoGo campaign (one perk: a hunky Kenyan mechanic calendar). Check out the campaign--which ends today

http://www.nextbillion.net/newspost.aspx?newsid=3425

but a light water reactor is better.These IAEA need to wake up the world is changing we need nuclear power here

^^true, but honestly I think geothermal, solar, and wind should be exploited in the short to medium term. Even just geothermal alone has the potential to provide over 5 times (7,000MW) what Kenya's current energy demands are.

Nuclear power requires a lot from years of training personnel to run the facility to appropriately desposing of nuclear waste. But of course long-term when Kenya's energy needs start to rise alongside increased development nuclear energy should definitely be considered.

But its a light water reactor there will not be a huge amount of waste by products

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http://www.nation.co.ke/business/news/-/1006/1373886/-/3wrh7ez/-/index.html