IFC Loan for LPG Terminal Plant in Mombasa

The International Finance Corporation (IFC) has agreed to lend $48Millionto Mombasa Gas Terminal Limited (MGT) to construct a liquefied petroleum gas (LPG) terminal in the Kenyan port of Mombasa on the coast of the Indian Ocean.

American engineering firmLloyd Jones Construction, has won the contract to build the facility, which will also have a pipeline and direct mooring access for large-sized LPG carriers. It is scheduled to commence operations in early 2020.

The terminal will feature a private berth for unloading mid-sized LPG carriers, an onshore 22,000 metric tonne capacity storage and associated infrastructure, including multiple landing points for transfer of LPG to transport vehicles.

The IFC Loan is slightly less than half of the $112Million funding for the project, which will come, in part, as equity from MGT, and in part, as loan from other lenders.

MGT is operates a fleet of 20 containers to import LPG into Mombasa on-board container vessels It is .owned by Dubai based Milio International Limited, which sells refined hydrocarbon fuels.

IFC , an arm of the World Bank group, is supporting the project because it is energy infratructure.“The aim of the project is to address issues of LPG supply and infrastructure in the Port of Mombasa to support the LPG master plan for Kenya, ” the bank says
MGT will use LPG-approved tanks to transfer the gas by trucks to the Rift Valley Railways (RVR) yard in Kilindini and the Standard Gauge Railways (SGR) yard in Port Reitz, from where the commodity will be transported to Nairobi and other parts in the country.

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

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