Continued discovery of oil resources in the region has emboldened plans by regional Governments that are connected by the LAPSSET Corridor to build a crude oil pipeline between Lamu Port and Kenya’s oil fields in Turkana Basin and Uganda’s oil fields at Lake Albert’s Basin and South Sudan oil fields. The Government of Kenya is soon putting up an Expression of Interest to select competitively the appropriate investors for the development of the crude oil pipeline.
The LAPSSET Pipeline Project is expected to have a considerable effect on the areas traversed by it. First, it will readily avail crude oil as well as refined petroleum products to the northern and northeastern parts of Kenya, namely counties and towns such as Marsabit and Isiolo, thus reducing their reliance on Mombasa and Nairobi.
Secondly, fuel oil and diesel will benefit agro-industrial projects on the whole corridor, especially along the lower areas of the Tana River Basin. Other projects that could benefit from cheaper fuels include the cement and salt factories currently under feasibility study in the Chalbi Desert by Ewaso Nyiro North Development Authority (ENNDA) in collaboration with the Ministry of Regional Development Authorities.
The LAPSSET Oil refinery will provide employment to a large number of people during its construction beside availing cheaper fuel for both industrial and domestic uses. With the anticipated development of agriculture and livestock through proposed irrigation schemes, the benefits of cheaper fuels are expected to maximize the benefits from agricultural and livestock production.
Implementation of Oil Refinery component shall be shall be undertaken by the Ministry responsible for Energy infrastructure in coordination with LAPSSET Corridor development Authority. A Special Purpose Vehicles (SPV’s) will be created to attract the participation of Private Sector in developing the Refinery(ies) Project on behalf of the Government of Kenya.
Within the Corridor, the establishment of petrol and diesel stations will enhance road transportation along the Corridor. Currently, most drivers travelling in the area to be traversed by the Corridor usually carry fuels (both diesel and petrol) for own use. With the anticipated development of more petrol stations along the Corridor, this will no longer be necessary. In addition to making road transport more efficient, the pipeline will provide ready access to the basic fuels to other modes of transport within the corridor, namely, road and railway transport. Aviation fuel will also be readily and conveniently availed to the airports in Lamu and Isiolo.
Also, many people are expected to be employed in downstream activities, especially in the anticipated number of petrol stations within the Corridor on all the three segments of the Corridor along the Lamu-Isiolo-Moyale and Isiolo-Nakodok routes. Employment will be similarly generated within the Ethiopian Southern Sudanese segments of the Corridor.