Wednesday, April 05, 2006

Oil and Gas: Kenya proposes building pipeline from South Sudan

The East African reports that Kenya has offered to build a pipeline from oil rich Southern Sudan to the Kenyan coastal town of Lamu to ship oil to regional and world markets.

The proposal was presented to Southern Sudan government officials at a recent investment conference in Nairobi. Kenya Pipeline Corporation managing director George Okungu said Kenya’s proximity to the sea and experience in pipeline management favoured Lamu port - as opposed to the Port of Sudan on the Red Sea - as the exportation port for Southern Sudanese oil. He said the distance from Kapoeta to Mombasa was 1,020 km, compared with 4,500 km to Port Sudan.

Sudan was reported to be keen to help Kenyan firms establish and strengthen their distribution networks in Sudan, a country that has always looked north for the supply of goods and services.