Vivo Energy boosts oil storage capacity

Vivo Energy boosts oil storage capacity

Oil marketer Vivo Energy has commissioned a 23 million litres diesel storage tank in Shimanzi, Mombasa County as it looks to boost its supply in the region.

The move comes as oil marketers struggle to find adequate storage for petroleum products resulting in thin profit margins.

Vivo has also opened a five million litre petrol tank pushing up its total storage capacity to 82 million litres for both products.

Speaking during the commissioning Vivo Energy Managing Director Polycarp Igathe said the investment will allow the marketer to grow expand and upgrade its retail network.

“Additional storage will enable Vivo Energy Kenya to support its rapidly growing retail business which has witnessed a 54 percent growth over the last three years,” Mr Igathe said.

The firm has grown its service outlets over the last 12 months to 172 stations under the Shell brand.

The investment will also serve as an avenue of supplementing the current ullage received from the pipeline, and enable Vivo to support inland and to its Ugandan subsidiary.

Vivo Energy has partnered with Rift Valley Railways (RVR) to move petroleum products via rail, supplementing transportation via the road and the pipeline.

The Kenya Pipeline Company has since last year, been leasing out oil storage facilities from to private investors in Nairobi and Mombasa to improve product distribution and supply.

Petroleum Principal Sectary Andrew Kamau challenged other oil marketers to invest in storage facility to offset challenges faced by KPC.

“Unfortunately KPC is not expanding at the same pace. So we have lagged behind on our storage leading to demurrage losses,” Mr Kamau said.