Energy and Petroleum Cabinet Secretary Opiyo Wandayi has defended Kenya’s move to invest in the construction of an oil refinery in Tanga in the neighboring Tanzania.
Speaking when he appeared before the senate; Wandayi has said that it makes no financial sense to run a refinery in Kenya.
“The refinery in Changamwe, due to the economics was found not to make business sense and that is why operations at the facility were discontinued,” said Wandayi.
The CS was responding to Mombasa Senator Justice retired Mohammed Faki who had sought to know why Kenya was backing the Tanga Refinery while ‘leasing Changamwe refinery to foreigners’.
Wandayi has disclosed that Kenya will start producing crude oil by the end of the year.
“For the first time Kenya is going to commercially produce oil, in any case before the end of this year,” said Wandayi.
Wandayi has, however, claimed that the quantities expected to be produced at the Lokichar Oil Field are not enough to run a viable refinery.
“The quantities envisaged to come out of South Lokichar are not adequate to run a commercial refinery; we shall be producing 20,000 barrels per day which will progress to 50,000 barrels per day,” added Wandayi.
On this deficit, Wandayi has claimed that Kenya needs to produce between 300,000 to 500,000 barrels per day to run a refinery.
President William Ruto during his tour of Tanzania backed plans to establish the Tanga plant that will be co-owned by Kenya, Uganda and the host country Tanzania.
