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  • Mombasa port receives its first LNG-powered ship

    Mombasa port receives its first LNG-powered ship

    The first-ever tanker powered by liquefied natural gas (LNG) to call on the Mombasa port berthed about two weeks ago, an itinerary revealed, boosting the gateway’s go-green emissions strategy in line with the International Convention for the Prevention of Pollution from Ships (Marpol Convention).

    Mv Arctic Tern, currently sailing under the flag of Singapore, delivered a consignment of palm oil from Malaysia to Mombasa. The vessel, which was commissioned on March 14, 2024, is 183 metres long and 32 metres wide.

    As emissions regulations become more stringent, many ship owners are turning to alternative fuels to power their vessels, with LNG emerging as a popular choice.

    LNG used to fuel ships is produced from natural gas extracted from underground reserves, including both onshore and offshore gas fields.

    The arrival of Mv Artic Tern is a boost for the Port of Mombasa as it joins other seaports around the world in implementing MARPOL, the International Maritime Organisation’s (IMO) main convention for the prevention of pollution of the marine environment by ships from operational or accidental causes.

    According to Julius Koech, Director of Maritime Safety at the Kenya Maritime Authority (KMA), the use of alternative fuels is part of the maritime and shipping industry’s efforts to mitigate the effects of climate change.

    “The levels of LNG emissions when burned are significantly low as compared to heavy fuels, which are being used, as it is also an advantage to the ship owner in terms of cost benefits in acquiring fuel,” he said.

    Under the Marpol regulations, all ships of 400 gross tonnage and above that are engaged in voyages to ports or offshore terminals under the jurisdiction of other parties must have an International Air Pollution Prevention Certificate, issued by the ship’s flag State.

    To obtain the certificate, ships must use low-sulphur fuel oil to meet IMO requirements, while refineries can blend high-sulphur (non-compliant) fuel oil with a low-sulphur fuel oil to produce a compliant one.

    Mr Koech said more LNG-powered vessels are expected to enter the market as more players comply with anti-pollution laws.

    “Moving forward we are going to see these kinds of ships plying the seas because the ambitious plan from the international arena is to decarbonise the shipping industry by 2050,” he said.

    Last year, the Port of Mombasa joined other ports around the world in implementing the new IMO Global Sulphur Cap 2020 rule, which came into force on January 1, 2020.

    The rule requires all seagoing vessels to use of low-sulphur fuel as part of a global effort to reduce air pollution by cutting sulphur oxide emissions.

    Mombasa-based Alba Petroleum and Alfoss Energy Ltd were contracted in December last year to refuel ships docking at the port with products containing 0.5 percent sulphur, compared to the previous limit of 3.5 percent.

    The law affects all ship operators, oil refiners, and bunker suppliers. The International Convention for the Prevention of Pollution from Ships aims to reduce sulphur oxide emissions from ships by 77 percent or about 8.5 million tonnes a year.

  • Kenyan court halts proposed leasing of JKIA to Adani

    Kenyan court halts proposed leasing of JKIA to Adani

    Kenya’s High Court has temporarily suspended the proposed plans to lease the Jomo Kenyatta International Airport (JKIA) to Indian conglomerate Adani Enterprises.

    In a case certified as urgent by the High Court, the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) challenged the push to take over the running of JKIA by the Indian company for a period of 30 years.

    The two organisations argued that JKIA is a strategic and profitable national asset and the deal is, therefore, irrational and violates the principles of good governance, accountability, transparency, and prudent and responsible use of public money.

    In the deal, the Indian firm would upgrade the airport, including the construction of a second runway and a new passenger terminal under a 30-year build-operate-transfer (BOT) contract.

    https://twitter.com/Its_TheWatchman/status/1833454705466347583

    KHRC and LSK, however, argued that Kenya can independently raise the estimated $1.85 billion or Ksh238 billion needed to expand JKIA without leasing the airport for the stated period.Kenya’s High Court has temporarily suspended the proposed plans to lease the Jomo Kenyatta International Airport (JKIA) to Indian conglomerate Adani Enterprises.

    In a case certified as urgent by the High Court, the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) challenged the push to take over the running of JKIA by the Indian company for a period of 30 years.

    The two organisations argued that JKIA is a strategic and profitable national asset and the deal is, therefore, irrational and violates the principles of good governance, accountability, transparency, and prudent and responsible use of public money.

    In the deal, the Indian firm would upgrade the airport, including the construction of a second runway and a new passenger terminal under a 30-year build-operate-transfer (BOT) contract.

    KHRC and LSK, however, argued that Kenya can independently raise the estimated $1.85 billion or Ksh238 billion needed to expand JKIA without leasing the airport for the stated period.

    “Thus, the Adani proposal is unaffordable, threatens job losses, exposes the public, is diproportionate to fiscal risk, and offers no value for money to the taxpayer,” lawyer Dudley Ochiel said in the application. 

    High Court judge John Chigiti certified the case as urgent and granted temporary order, suspending the deal pending the determination of the case.

    The judge directed the case to be mentioned on October 8, to get a judgment date.

    Mr Ochiel submitted that the application will be rendered nugatory and moot if KAA and Adani are not stopped from signing the agreement and Adani goes ahead and acquires JKIA.

    The two organisations said they have written unsuccessfully to JKIA, seeking information under Article 35(1) and (3) of the Constitution of Kenya and section 4 of the Access to Information Act.

    It is LSK’s argument that Kenya would surrender the operational and profitable JKIA to Adani for 30 years in exchange for $1.85 billion. 

    “Thus, the proposal would deprive the public of, and transfer to Adani, all the current revenues, receipts, expenditures and other financial transactions over JKIA. Although the project is dubbed a Built Operate Transfer, KAA would be handing over an existing and operational airport to Adani,” Mr Ochiel said. 

    He added that in the end of the 30 years, Adani would, in perpetuity, retain an 18 percent equity stake in the aeronautical business at JKIA. 

    “Thus, after 30 years, Adani would be entitled to an 18 percent concession fee starting at Ksh6 billion and increasing by 10 percent every five years forever. In this way, the Adani proposal violates Article 201(c), demanding that the burden and benefits of using resources and public borrowing be shared equitably between present and future generations,” he said.

    He submitted that under the deal, Adani would acquire nearly 30 acres of unencumbered land next to JKIA for airport property investment and development business.

    Besides, the proposal entitles Adani to operate tax-free for ten years, import labour, and obtain free work visas, thus depriving Kenyan workers of their livelihood, contrary to Articles 26, 41, and 43 of the Constitution.