Rwanda receives first 40,000-tonne fuel cargo through Kenya

Rwanda has received its first bulk shipment of refined petroleum products through Kenya, activating a new supply route expected to diversify the country’s fuel imports and strengthen energy security.

The 40,000-tonne cargo, carried by the MT Sea Wolf, arrived at the Kenya Pipeline Company’s Kipevu Oil Terminal 2 in Mombasa.

The arrival was marked by a ceremony attended by Armand Zingiro, Minister of State in the Ministry of Infrastructure, and James Opiyo Wandayi, Kenya’s Cabinet Secretary for Energy and Petroleum.

The shipment marks the start of a new arrangement under which Rwanda will import bulk refined petroleum products through Kenya and the Northern Corridor.

Zingiro said the new route would provide Rwanda with a reliable and cost-effective option for importing petroleum products needed by the economy.

“This new route through the Northern Corridor will give Rwanda a reliable and cost-effective way to import refined petroleum products our economy depends on,” he said.

Wandayi described the arrival as a milestone in the two countries’ cooperation, saying the arrangement was the result of nearly three years of collaboration.

He said Kenya’s port and logistics infrastructure would continue to support Rwanda and other countries in the region.

The new supply arrangement is based on a framework developed by the two governments to strengthen the Northern Corridor as a route for Rwanda’s petroleum imports.

It uses Kenya’s port, pipeline and storage infrastructure to transport and handle Rwanda-bound fuel.

The framework includes a Memorandum of Understanding between Kenya’s Ministry of Energy and Petroleum and Rwanda’s Ministry of Trade and Industry, signed on June 29.

It also includes a Tripartite Agreement involving the two ministries and the Rwanda National Energy Company (RNEC), as well as a Transport and Storage Agreement between the Kenya Pipeline Company and RNEC.

The latter agreement covers the transportation, storage, scheduling and handling of Rwanda’s petroleum imports through Kenya’s pipeline and terminal infrastructure.

The two governments described the arrangement as a demonstration of regional integration under the East African Community and the African Continental Free Trade Area.

They expect the arrangement to improve supply-chain efficiency, strengthen regional energy security and reduce logistical costs for Rwanda’s petroleum sector.

More flexibility for importers

The new route could also give petroleum importers more flexibility in managing fuel supplies.

In July, Eric Herbez Mutanganda, Chairperson of the Rwanda Association of Petroleum Products Importers (ASSIMPER), said the arrangement would extend the period importers can keep fuel in storage in Kenya from about 30 days to 60 days.

This would allow importers to bring petroleum products into Rwanda according to market needs as the country continues to expand its domestic fuel storage capacity.

Mutanganda also said having another supply route would reduce Rwanda’s reliance on a single corridor.

“Previously, about 90 to 95 per cent of our petroleum products came through one corridor. Now we will use two,” he said.

The Rwanda National Energy Company was established this year to strengthen the country’s energy security and support a reliable and resilient energy supply chain.

RNEC works with governments, regional partners and private-sector stakeholders to secure and diversify energy supplies, develop strategic infrastructure and support opportunities across the energy sector.

By Prince Ruzigana