By ANTHONY KITIMO

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The proposed storage facility for liquefied petroleum gas (LPG) in Mombasa has attracted the interest of more investors in what could become a common pool for importers.

Fossil Supplies Ltd this week confirmed it has sent an environmental impact assessment report to the National Environment Management Authority (Nema) for approval.

This came several months after Tanzania’s Taifa Gas Investment applied for licence to erect the project.

Nema on Tuesday issued a gazette notice asking the public for comments on the proposed project that will be situated at a 3.5-acre piece of land leased from the Kenya Railways Corporation in Changamwe, near the government-owned Kenya Pipeline Company depot.

The project will cost KSh1.97 billion ($16 million).

"The LPG facility, being a common user, will enable the oil marketers access an alternative for importation and supply of liquefied petroleum gas at a competitive price to the end users," said Fossil Supplies in regulatory filings.

Fossil Supplies, through Petrocity Group, already operates 94 petrol service stations across Kenya and Uganda.

It distributes its LPG through Petgas-branded cylinders.

It’s new import handling and storage unit if approved will help relieve demand pressure in the country through the reduction of stock-outs.

This will break the monopoly currently being held by Africa Gas and Oil Ltd, which owns the 10,000 tonne LPG storage facility that handles more than 90 per cent of the imported LPG, with smaller players paying to use it. Government-owned Shimanzi Oil Terminal has a 1,400-tonne capacity.

Kenya has an annual LPG consumption demand of 300,000 metric tonnes.