Diesel shortage looms ahead of the festive season due to a standoff over offloading at Mombasa port.
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Kenya Shell says although MT Oriental Green arrived on November 29, 2009, the vessel had been denied priority to discharge 27,013 metric tons (MT) of diesel imported by the firm on behalf of the industry.
Instead, the ministry of Energy had informed Kenya Pipeline Company (KPC) to give priority to another tanker carrying diesel for Kenya Electricity Generating Company (KenGen) emergency generators over the Shell’s contracted vessel.
It is feared Shell’s consignment, which was expected to reach retail outlets by next week, will delay for a number of days.
Meanwhile, the ministry has awarded Mogas, under the open tender system (OTS), the contract to import 13,850 MT of petrol on emergency basis to avert shortage.
Emergency tender results show Mogas bid US$18.14 as freight and premium for 13,850 MT of petrol slated to arrive at Kipevu Oil Terminal (KOT) in Mombasa from January 7 to 9 next year.
Sovereign bid US$20.90 as basis of freight and premium per metric ton while Galana had US$ 21.72), Shell (US$32.26) and KenolKobil (US$47.65).
MV Voge Trust which listed at Mombasa port last Thursday prior to berthing at KOT was ferrying 35,000 MT of diesel imported for emergency power generation.
Shell has already written a letter asking the ministry to refund the firm demurrage charges (penalties levied by ship owners) due to MT Oriental Green delaying offloading imported diesel in Mombasa.
“We would want to be to be indemnified by ministry of Energy for any claims, costs and any other kind of expenses made on us,” said Shell’s Planning and Trading Manager Ben Obura.
He said in a letter dated December 2, 2009, sent to the Ministry of Energy and copied to chief executives of oil marketing companies that the industry is short of diesel as festive season approaches.
Ministry of Energy said in a letter sent to KPC on December 1, 2009, that MT Voge Trust had been waiting to discharge diesel for KenGen’s emergency power since November 20.
Energy Permanent Secretary Patrick Nyoike said the cargo had a firm date of November 25 to 27 this year but due to congestion at KOT, the vessel had not managed to berth.
He said KenGen had informed the ministry that their supplier had informed them that they are running low on diesel stocks and the vessel continues to accumulate heavy demurrage charges.
“We therefore request you arrange to receive this vessel immediately after MT Atlantic Innovator, currently discharging petrol, vacates the berth,” said Mr Nyoike.
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