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VituVingiSana
#11 Posted : Sunday, January 24, 2016 11:32:36 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Modern refineries are complex and one builds a Refinery Complex that is multi-purpose.
- Handles different types of crude oil
- Produces more White Oils vs Black Oils
- Can vary the production of distillates as needed
- Storage facilities for both crude and refined products
- Other intermediate products are manufactured eg base materials for plastics
- Low sulfur fuel production that meets stringent standards [KPRL couldn't always meet those standards]

That's why a new refinery was being looked at for Lamu on much more land and with offtake for the by-products including steam, heat and gases [LPG]. In addition, it has to be integrated with the port.

The challenge is that these (competitive) mega-refinery complexes need huge investments.

The world's largest refinery, on 7,500 acres, is in India https://en.wikipedia.org/wiki/Jamnagar_Refinery 1,240,000 bbl/day which is 17x KPRL which at it's peak could process only 70,000 bbl/day.

Essar has a 405,000 bbl/d (64,400 m3/d) refinery.

Kenya also imports a lot from Singapore:

ExxonMobil Jurong Island Refinery (ExxonMobil), 605,000 bbl/d (96,200 m3/d)
SRC Jurong Island Refinery (Singapore Refining Corporation), 290,000 bbl/d (46,000 m3/d)
Shell Pulau Bukom Refinery (Royal Dutch Shell), 500,000 bbl/d (79,000 m3/d)
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Aguytrying
#12 Posted : Monday, January 25, 2016 10:46:16 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Realtreaty wrote:


I rarely agree with stockbrokers, but this is the truth. It's common sense to every seasoned investor. The only trap many will fall into is looking for the hailed bottom An exercise in futility. Determine your cut off price and buy from that price and below periodically over the bear period.
The investor's chief problem - and even his worst enemy - is likely to be himself
mlennyma
#13 Posted : Monday, January 25, 2016 10:52:40 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Aguytrying wrote:
Realtreaty wrote:


I rarely agree with stockbrokers, but this is the truth. It's common sense to every seasoned investor. The only trap many will fall into is looking for the hailed bottom. And exercise in futility. Determine your cut off price and buy from that price and below periodically over the bear period.

it is a good time to double your fortunes when guys will be recovering their 50% plus paper losses
"Don't let the fear of losing be greater than the excitement of winning."
Aguytrying
#14 Posted : Monday, January 25, 2016 11:20:06 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
mlennyma wrote:
Aguytrying wrote:
Realtreaty wrote:


I rarely agree with stockbrokers, but this is the truth. It's common sense to every seasoned investor. The only trap many will fall into is looking for the hailed bottom. And exercise in futility. Determine your cut off price and buy from that price and below periodically over the bear period.

it is a good time to double your fortunes when guys will be recovering their 50% plus paper losses


Exactly. There's that temptation to sell to buy lower and it starts making sense as the bear bites harder. It is pure evil and self distraction. It never ends well
The investor's chief problem - and even his worst enemy - is likely to be himself
Realtreaty
#15 Posted : Wednesday, February 03, 2016 12:31:58 PM
Rank: Elder

Joined: 8/16/2011
Posts: 2,387
Aguytrying wrote:
mlennyma wrote:
Aguytrying wrote:
Realtreaty wrote:


I rarely agree with stockbrokers, but this is the truth. It's common sense to every seasoned investor. The only trap many will fall into is looking for the hailed bottom. And exercise in futility. Determine your cut off price and buy from that price and below periodically over the bear period.

it is a good time to double your fortunes when guys will be recovering their 50% plus paper losses


Exactly. There's that temptation to sell to buy lower and it starts making sense as the bear bites harder. It is pure evil and self distraction. It never ends well

smile We say in customer care never try words that have "NO" in them, use words with YES and do more to exceed. Its true money will be there even where profit warnings have sounded in some we will still hve some harvest ata kama ni mbegu. Think of Kakuzi, Kenya Orchard and ask yourself why mumias is where it is.(Forget about Joho sugar)and talk about stealing and corruption which are one and the same.
During Moi error more and more Indians tycoon were using Statehouse road than what is today. That time statehouse road had so many high profile SUVs considering the industrial strikes that were so many and crushed by police with Shopstewards and union members deaths in unclear state.
We still move on, take advantge of lower prices to get to something in future for those with disposable income. Its like Pensionsmile
Realtreaty
#16 Posted : Wednesday, March 02, 2016 10:04:42 PM
Rank: Elder

Joined: 8/16/2011
Posts: 2,387
Its time/Month Hunters gather, Its time to eat with big spoon. For those who accumulated lots, good time!!!
Pesa Nane
#17 Posted : Thursday, March 03, 2016 1:10:57 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Realtreaty wrote:
Aguytrying wrote:
mlennyma wrote:
Aguytrying wrote:
Realtreaty wrote:


I rarely agree with stockbrokers, but this is the truth. It's common sense to every seasoned investor. The only trap many will fall into is looking for the hailed bottom. And exercise in futility. Determine your cut off price and buy from that price and below periodically over the bear period.

it is a good time to double your fortunes when guys will be recovering their 50% plus paper losses


Exactly. There's that temptation to sell to buy lower and it starts making sense as the bear bites harder. It is pure evil and self distraction. It never ends well

We say in customer care never d'oh! try words that have "NO" in them, use words with YES and do more to exceed. Its true money will be there even where profit warnings have sounded in some we will still hve some harvest ata kama ni mbegu. Think of Kakuzi, Kenya Orchard and ask yourself why mumias is where it is.(Forget about Joho sugar)and talk about stealing and corruption which are one and the same.
During Moi error more and more Indians tycoon were using Statehouse road than what is today. That time statehouse road had so many high profile SUVs considering the industrial strikes that were so many and crushed by police with Shopstewards and union members deaths in unclear state.
We still move on, take advantge of lower prices to get to something in future for those with disposable income. Its like Pension

Pesa Nane plans to be shilingi when he grows up.
PKoli
#18 Posted : Thursday, March 03, 2016 9:31:54 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
VituVingiSana wrote:
Modern refineries are complex and one builds a Refinery Complex that is multi-purpose.
- Handles different types of crude oil
- Produces more White Oils vs Black Oils
- Can vary the production of distillates as needed
- Storage facilities for both crude and refined products
- Other intermediate products are manufactured eg base materials for plastics
- Low sulfur fuel production that meets stringent standards [KPRL couldn't always meet those standards]

That's why a new refinery was being looked at for Lamu on much more land and with offtake for the by-products including steam, heat and gases [LPG]. In addition, it has to be integrated with the port.

The challenge is that these (competitive) mega-refinery complexes need huge investments.

The world's largest refinery, on 7,500 acres, is in India https://en.wikipedia.org/wiki/Jamnagar_Refinery 1,240,000 bbl/day which is 17x KPRL which at it's peak could process only 70,000 bbl/day.

Essar has a 405,000 bbl/d (64,400 m3/d) refinery.

Kenya also imports a lot from Singapore:

ExxonMobil Jurong Island Refinery (ExxonMobil), 605,000 bbl/d (96,200 m3/d)
SRC Jurong Island Refinery (Singapore Refining Corporation), 290,000 bbl/d (46,000 m3/d)
Shell Pulau Bukom Refinery (Royal Dutch Shell), 500,000 bbl/d (79,000 m3/d)


@VVS,

Nice piece. In view of Uganda picking the pipeline route through Tz, what's current feasibility of the Lamu port, pipeline and refinery especially?
VituVingiSana
#19 Posted : Thursday, March 03, 2016 11:40:08 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
PKoli wrote:
VituVingiSana wrote:
Modern refineries are complex and one builds a Refinery Complex that is multi-purpose.
- Handles different types of crude oil
- Produces more White Oils vs Black Oils
- Can vary the production of distillates as needed
- Storage facilities for both crude and refined products
- Other intermediate products are manufactured eg base materials for plastics
- Low sulfur fuel production that meets stringent standards [KPRL couldn't always meet those standards]

That's why a new refinery was being looked at for Lamu on much more land and with offtake for the by-products including steam, heat and gases [LPG]. In addition, it has to be integrated with the port.

The challenge is that these (competitive) mega-refinery complexes need huge investments.

The world's largest refinery, on 7,500 acres, is in India https://en.wikipedia.org/wiki/Jamnagar_Refinery 1,240,000 bbl/day which is 17x KPRL which at it's peak could process only 70,000 bbl/day.

Essar has a 405,000 bbl/d (64,400 m3/d) refinery.

Kenya also imports a lot from Singapore:

ExxonMobil Jurong Island Refinery (ExxonMobil), 605,000 bbl/d (96,200 m3/d)
SRC Jurong Island Refinery (Singapore Refining Corporation), 290,000 bbl/d (46,000 m3/d)
Shell Pulau Bukom Refinery (Royal Dutch Shell), 500,000 bbl/d (79,000 m3/d)


@VVS,

Nice piece. In view of Uganda picking the pipeline route through Tz, what's current feasibility of the Lamu port, pipeline and refinery especially?

IMHO, forget Changamwe and build a "MODERN" refinery in Lamu but there are risks.
1) Kenya needs larger discoveries to make a refinery viable. Refineries need to be 'fed' daily so it needs a minimum bpd production. Look at the needs of the large/efficient refineries above.
2) Kenya needs South Sudan oil [in the absence of Uganda] to support the Lamu Refinery.
3) If the refinery is large enough, Kenya can import crude from ME & process it for inland markets.

Pipeline: It is only feasible if Kenya has more than just Turkana i.e. SS has to come on-board. Not easy as (North) Sudan has them by the balls. Uganda's waxy crude needs to be heated to move by pipeline which is why some analysts say UG should use railway or trucks.

Lamu Port: It needs a lot more going for it. The 'vision' was Refinery, Petroleum import/export, Railway [goods to UG, SS, south Ethiopia & Northern KE] and opening of Turkana/Marsabit/Isiolo for business/farming. I am not so sure.

If I was in GoK, I'd look to dualize Nairobi-Mombasa [4 lanes each way], connect South Coast & North Coast [Malindi] to Voi so folks avoid going into Mombasa just to connect through.

I'd dualize Nairobi-Kisumu-Malaba-Busia to support exports to UG.

As for the railway, I would have taken the existing line and improved it at a fraction of the cost. Add an extra rail so both Narrow and Standard gauge train can use it. In some areas, add extensions for SGR.

I prefer multiple PPPs to grand GoK projects. Grand infrastructure projects sound great but incremental projects have better ROIs. Look at power where PPPs are increasing capacity and gradually. Every 3-6 months we see additional power capacity coming online.

Anyway, as a private citizen... I can only watch my taxes being wasted.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
PKoli
#20 Posted : Friday, March 04, 2016 12:23:51 AM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
@VVS,

Many thanks for your insights. I wish senior policy makers in government were reading this.
For the project of such magnitude as lapsset will certainly require PPPs.

It's critical that the road network is well developed to transport equipment to the port area site. Electricity, road infrastructure and water should have been developed in tandem as major enablers for the project.
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