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Kenya, South-Sudan and Ethiopia to speed up LAPSSET Corridor project

ILF won South-Sudan export pipeline feasibility study

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe German-based ILF Consulting Engineers (ILF) has been awarded by the Ministry of Petroleum and Mining  a contract to perform the feasibility study on export pipeline projects out of the Republic of South Sudan.

By this contract ILF is expected to analyze and compare the alternative routes to export crude oil out of South Sudan.

In this study, ILF will consider the technical aspects as well as the political challenges of the different potential solutions.

LAPSSET_South-Sudan_Kenya_Pipeines-and-Lamu_Refinery_MapSouth Sudan concentrates 75% of the oil and gas reserves currently identified in previously unified Sudan and is planning to ramp up its current production of 350,000 barrels per day (b/d) to 500,000 b/d.

The export of the oil is an essential economical resources for both newly formed states Sudan and South Sudan.

Therefore the selection of the export pipeline route will have serious consequences for both countries.

The only existing pipeline is crossing Sudan up to Port Sudan on the Red Sea.

This pipeline is continuously a source of discussions between the two countries regarding the fees to be paid by South Sudan.

As alternative routes, South Sudan is considering to pass by Ethiopia to reach Djibouti or to come across Kenya to Port of Lamu.

In 2012, Juba, the South Sudan capital signed memorandum of understanding (MOU) with Ethiopia and Kenya to allow the corresponding feasibility studies.

Chinese won first contracts on Lapsset Corridor project

A consortium of Chinese contractors led by China Communications Construction Company (CCCC) has been awarded the first contract of the Lamu Port South Sudan Ethiopia Transport (LAPSSET) corridor project.

Estimated to $500 million capital expenditure this first contract covers the construction of a three berths Port in Lamu, Ethiopia.

In awarding this first package, Ethiopia, South Sudan and Kenya are showing their intention to speed up the LAPSSET Corridor project.

With a total cost of $26 billion capital expenditure, already well partially funded, the LAPSSET Corridor project  is the second largest project in East Africa including the construction of:

Kenya_Lamu-Port_Refinery_Project – Port of Lamu

 – Transportation infrastructures with three Airports, Highways and Railways

 – Export crude oil pipeline

 – Refinery

 – Refined products pipelines system

 – Three resorts cities

With a capacity of 500,000 b/d, representing South Sudan production, the crude oil export pipeline should require $3 billion capital expenditure for 1,260 kilometers long to connect Nakodok in South Sudan to Port of Lamu in Kenya.

With 120,000 b/d capacity, the Lamu Refinery is estimated to cost $2.8 billion capital expenditure. 

Then the refined products pipelines system is designed to carry back the refined products from the Lamu refinery to the center of Kenya and to supply Ethiopia.

It should include a:

 –  First section of 530 kilometers from Lamu to Isiolo with 97,900 b/d capacity

 – Storage tanks Terminal in Isiolo with 40,200 b/d capacity to supply Kenya domestic market

 – Second section of 450 kilometers from Isiolo to Moyale at the border with Ethiopia for export with a capacity of 57,700 b/d

As to be the main source of revenues for all the three countries, Kenya, South Sudan and Ethiopia, the crude oil export export pipeline and the refined products pipelines system of the LAPSSET project are expected in operations in 2016.

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2 Comments to “Kenya, South-Sudan and Ethiopia to speed up LAPSSET Corridor project”

  1. kindly inquiring the lapsset route from isiolo through baringo county to turkana

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