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{
"id": 209176,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/209176/?format=api",
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"type": "speech",
"speaker_name": "Mr. Murungi",
"speaker_title": "The Minister for Energy",
"speaker": {
"id": 93,
"legal_name": "Kiraitu Murungi",
"slug": "kiraitu-murungi"
},
"content": " Mr. Temporary Deputy Speaker, Sir, we are saying that with this intensified and heightened level of exploration for oil and gas in this country, it is just a matter of time before we strike commercial hydrocarbon like our neighbours. So, my Ministry is investing a lot in oil and gas exploration. You will find in the Estimates that we are seeking your approval today. Regarding geothermal exploration, we are in the process of forming a geothermal development company, whose exclusive focus will be geothermal exploration, especially in the Rift Valley. Hon. Members have raised concerns regarding the very little allocation to the development of alternative sources of energy, the renewables. The small amounts contained in the Estimates for this year only capture elements of research and planning. The Ministry is, indeed, aware that the world is moving towards renewable sources of energy, wind, solar, microhydro, et cetera . We need to invest much more resources in the renewables, and we believe that during the next financial year, we will be making a much bigger request than we have made this year, because the results of some of the studies that we are undertaking will be out, and we will be in a position to have a framework within which we can extract direct private investment into renewables during the next financial year. Regarding liquified petroleum gas (LPG) supply, again, this is a very challenging area. We have been having challenges regarding inadequacy of infrastructure, storage and handling capacity. To address this issue, the Ministry has, therefore, decided to implement two projects through the Kenya Petroleum Refinery and the Kenya Pipeline Company (KPC) to build an LPG depot for handling and storage in Mombasa and another one in Nairobi, which will entail construction of 6,000 metric tonnes LPG import, handling and storage facility in Mombasa, and a 2,000 metric tonnes LPG storage and sales facility in Nairobi. We hope to construct these two facilities also with support from the private sector. These two projects will improve availability of the LPG. We will also look at the question of cost. We want to supply to wananchi the LPG at an affordable cost. So, we believe our two projects will make the LPG not only available but also affordable. Regarding the Kenya Petroleum Refinery upgrading, already the Government has made a decision to upgrade it. During this financial year, the Treasury has made available Kshs1 billion towards this project. The project will be developed by the Government, in conjunction with the 3162 PARLIAMENTARY DEBATES August 14, 2007 private sector participation. So far, six oils firms, including the TAMOIL of Libya, and five other foreign firms, have expressed interest in participating in the Refinery upgrading project. Mr. Temporary Deputy Speaker, Sir, with regard to the prices of petroleum products, the Government is aware that the prices of these products in Kenya are very high. However, as you are aware, the prices of petroleum products are dependent on international market prices of crude oil. The dominant crude oil used in Kenya is maban oil from the United Arab Emirates. Its price rose from US$54.85 in January this year to US$73.70 per barrel in July this year. So, within a period of six months, there was a 34 per cent increase in the price of crude oil. This has led to high domestic prices. However, as we have said before, the Government, through the newly created Energy Regulatory Commission, will continue to monitor these prices to ensure that Kenyans are not unduly exploited by oil cartels operating in this market. Hon. Members have raised other pertinent issues, which my officers have noted. We are going to study them in great detail and implement them, as we continue with our operations during the financial year. I want, again, to sincerely thank all hon. Members from both sides of the House for their tremendous support for my Ministry, my staff and myself, as a Minister, during this financial year. I, again, want to thank them very much, and we promise you our support as we continue to provide Kenyans with clean, accessible and affordable modern energy services. With those few remarks, I beg to move."
}