PIDA Sector: Energy

PIDA Sub-sector: Petroleum Gas Pipelines

Member States: Kenya, South Sudan

Region: Eastern Africa

Beneficiary Countries: Ethiopia, Kenya, South Sudan

Regional Economic Community East African Community (EAC), Intergovernmental

Authority on Development (IGAD)

Project Institution: Ministry of Energy (Kenya), Ministry of Petroleum and Mining (Kenya)

and Ministry of Energy and Dams (South Sudan), LAPSSET Corridor Development Authority

(Kenya)

Source in the National Master Plan: Kenya Vision 2030

Source in the REC Master Plan: IGAD Regional Infrastructure Master Plan (IRIMP)

Brief Description of the Project: The Lamu Crude Oil Pipeline is a proposed crude oil

pipeline that will originate from South Sudan oil fields to the Lamu port and will also be used

to evacuate crude oil from the oil-rich fields in South Lokichar in Kenya to Lamu Port for

export. Crude oil loading to oil tankers will be made through Single Point Mooring (SPM) at

Lamu Port. 200,000DWT is considered as the maximum size of the tankers. The location of

the refinery has been investigated under this study. Lamu has been considered for the

location. Crude oil will be transported through the crude oil pipeline, while Gasoline,

Kerosene, and Diesel will be transported through the product oil pipeline (multi-product

pipeline). Transportation volumes have been set through the analysis by among economists,

refinery engineers and pipeline engineers based on the market and economic study.

Crude oil is to be transported from the tank terminal beside the refinery to SPMs by two

crude oil pipelines. The onshore portion of the pipeline route has been selected to avoid

passage through the city center of Lamu, whereas, the offshore portion has been selected to

run along the boundary of the port extension plan. The pipelines will run in an easterly

direction through Magumba before turning South-east into Wange creak where they will be

installed under the seabed to a point just North-west of Pate Island. The lines will make a

turn Southwards transversing mainly a mangrove area through Tukutu, Chongoni, and

Mwamba Pazah. From Mwamba Pazah the lines will be installed under the sea bed and run

southwards to the two SPMs in the main channel. Crude oil stored at Lamu crude oil tank

terminal will be transported through crude oil exporting pipelines of 42km length (on-land

portion 11km, offshore portion 31km) to Single Point Moorings (SPM) and then to oil tankers

(Max.200,000DWT) for export. The duration of loading to the tanker has been set as 30

hours, which is typical loading time in oil-exporting countries. The flow rate of loading to a

200,000DWT tanker has been set as 8,000m3/hr accordingly. The design pressure is set to

be 2.0MPa as a typical pressure. As a result of the hydraulic analysis, it has been found that

two lines of 48-inch diameter are required.

Objective and Rationale for the Project: The project will boost economic development

by improving access to markets for crude oil to the Lamu Port which will provide access to

international markets. The project will also provide employment in the construction and

maintenance of the crude oil pipeline

Location/Site: Kenya

Existing or Planned Projects along the proposed project: The project serves an

existing infrastructure asset of another sector, but there is more than 50% overlap in the

geography serviced by the proposed project and the other sector existing asset. Lamu Port (three berths

constructed), other planned LAPSSET components (railway, highway, refinery, airports, resort cities, etc)

Technical Specifications of the Project: The flow rate of loading to a 200,000DWT

tanker has been set as 8,000m3/hr accordingly. The design pressure is set to be 2.0MPa as

a typical pressure. As a result of the hydraulic analysis, it has been found that two lines of

48-inch diameter are required.

Market Size 62 million

Project Financial (in USD) 3064 million

Gender Procurement actions: 30 percent

Last Milestone Known: S3A - Project Structuring