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{
"id": 2811,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2811/?format=api",
"text_counter": 65,
"type": "speech",
"speaker_name": "Eng. M.M. Mahamud",
"speaker_title": "The Assistant Minister for Energy",
"speaker": {
"id": 373,
"legal_name": "Mohammed Maalim Mahamud",
"slug": "mohammed-mahamud"
},
"content": "(b) Mr. Speaker, Sir, to address the current biting shortage, the following measures have been put in place:- (i) The defect on the LPG pipeline from KPRL to Shimanzi has been repaired, thus facilitating receipt of LPG in the limited storage facilities owned by oil marketing companies. (ii) Oil marketing companies with limited storage tanks at Shimanzi and Changamwe have agreed to arrange joint LPG imports. (iii) KPRL is expected to resume its normal crude oil processing throughput this week and production of LPG is expected to normalize at 100 tonnes daily. Mr. Speaker, Sir, the anticipated commissioning of the second half of 2012 of LPG import handling and storage facility at Miritini, which is at an advanced stage of completion, will be capable of handling LPG ships loads of up to 14,000 metric tonnes. LPG shortage will, therefore, become a thing of the past given that, that facility will be capable of handling more than 300,000 tonnes annually. It will also be expected to handle larger quantities in tandem with the growing demand. Mr. Speaker, Sir, by way of general statement, I would like to inform this august House that, since early 1990, demand for LPG has always exceeded supply. Efforts made since 1994 to promote private sector investment in LPG import handling and storage facility were unsuccessful until 2006 when, through an open tender floated by the Ministry of Energy and the Ministry of Finance including KPRL, an investor was awarded a 30-year concession. That facility, as I have already stated, is at an advanced stage of construction at Miritini Mombasa and is expected to be fully operational by the second quarter of 2012. Thank you."
},
{
"id": 2812,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2812/?format=api",
"text_counter": 66,
"type": "speech",
"speaker_name": "Mr. Ochieng",
"speaker_title": "",
"speaker": {
"id": 2955,
"legal_name": "David Ouma Ochieng'",
"slug": "david-ouma-ochieng"
},
"content": "Mr. Speaker, Sir, could the Minister explain to us what is the current demand of that particular product all over the country? At the same time, why do we have that abnormal increase in the price of that particular product? Why has it become so expensive all of a sudden?"
},
{
"id": 2813,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2813/?format=api",
"text_counter": 67,
"type": "speech",
"speaker_name": "Eng. M.M. Mahamud",
"speaker_title": "",
"speaker": {
"id": 373,
"legal_name": "Mohammed Maalim Mahamud",
"slug": "mohammed-mahamud"
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"content": "Mr. Speaker, Sir, the demand for LPG in the country is currently in excess of 200,000 metric tonnes per year. Currently, only 30,000 metric tonnes are processed by KPRL every year, while 60,000 tonnes are imported by oil marketing companies. As to the reason why the price is very high, as of today, there are many ships at Shimanzi Oil Terminal discharging LPG. So, the facilities are not adequate and many costs are incurred by way of demurrage. The production is determined by the market price. So, that is why the price is very high. But with bulk handling which we expect to commission by the first quarter of 2012, the price will come down."
},
{
"id": 2814,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2814/?format=api",
"text_counter": 68,
"type": "speech",
"speaker_name": "Mr. Bahari",
"speaker_title": "",
"speaker": {
"id": 156,
"legal_name": "Abdul Bahari Ali Jillo",
"slug": "bahari-ali-jillo"
},
"content": "Mr. Speaker, Sir, this Government is not serious. You know that the price of sugar is very high, the price of maize is unaffordable and now, LPG is also becoming unaffordable. They are pursuing a very dangerous trend. Why can the Government not ensure that there is enough capacity and extra storage for that facility at the Port for at least three months even if we have a problem? Serikali gani hii ?"
},
{
"id": 2815,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2815/?format=api",
"text_counter": 69,
"type": "speech",
"speaker_name": "Eng. M.M. Mahamud",
"speaker_title": "",
"speaker": {
"id": 373,
"legal_name": "Mohammed Maalim Mahamud",
"slug": "mohammed-mahamud"
},
"content": "Mr. Speaker, Sir, I do agree with the hon. Member. But as I mentioned, in the next four months, we are going to commission a large facility which is going to deal with the issue of supply. We hope that, that facility will de-bottleneck the LPG processing in the country. That is because, currently, the infrastructure we have is not adequate. Therefore, importing, storage and distribution will be adequately improved. Currently, we have limited infrastructure for LPG supply in the country."
},
{
"id": 2816,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2816/?format=api",
"text_counter": 70,
"type": "speech",
"speaker_name": "Dr. Khalwale",
"speaker_title": "",
"speaker": {
"id": 170,
"legal_name": "Bonny Khalwale",
"slug": "bonny-khalwale"
},
"content": "Mr. Speaker, even as the Assistant Minister has assured us that ships have docked with LPG, we have unscrupulous people who have LPG in the estates now. They are selling gas in the estates when there is no gas at petrol stations at all. What is the Assistant Minister doing to crack down on unscrupulous businessmen who are hoarding gas to make it expensive?"
},
{
"id": 2817,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2817/?format=api",
"text_counter": 71,
"type": "speech",
"speaker_name": "Eng. M.M. Mahamud",
"speaker_title": "",
"speaker": {
"id": 373,
"legal_name": "Mohammed Maalim Mahamud",
"slug": "mohammed-mahamud"
},
"content": "Mr. Speaker, Sir, I am not aware of any hoarding but, if that is the case, then it is a very serious matter. We will investigate that problem immediately."
},
{
"id": 2818,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2818/?format=api",
"text_counter": 72,
"type": "speech",
"speaker_name": "Mr. Njuguna",
"speaker_title": "",
"speaker": {
"id": 20,
"legal_name": "Peter Njuguna Gitau",
"slug": "peter-gitau"
},
"content": "Mr. Speaker, Sir, the Assistant Minister has admitted that the price of LPG is very high. What is the Government doing to cushion the gas consumers?"
},
{
"id": 2819,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2819/?format=api",
"text_counter": 73,
"type": "speech",
"speaker_name": "Eng. M.M. Mahamud",
"speaker_title": "",
"speaker": {
"id": 373,
"legal_name": "Mohammed Maalim Mahamud",
"slug": "mohammed-mahamud"
},
"content": "Mr. Speaker, Sir, LPG is imported and distributed by private companies. As I said, currently, the infrastructure for handling LPG is very inadequate. We have a concession with a company which is building the facility at Miritini. Once that facility is complete, there will be proper competition and the price of gas will come down."
},
{
"id": 2820,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/2820/?format=api",
"text_counter": 74,
"type": "speech",
"speaker_name": "Mr. Speaker",
"speaker_title": "",
"speaker": null,
"content": "Last question, hon. Member for Nyakach!"
}
]
}