Rwanda’s petroleum imports through the Northern Corridor are expected to rise from about 42,000 cubic metres in 2025 to more than 500,000 cubic metres annually.
Rwanda’s maiden bulk fuel cargo under a government-to-government supply arrangement with the Sultanate of Oman will arrive at the Mombasa port on Tuesday, marking a major milestone for Kenya’s efforts to rebuild Mombasa’s profile as a regional petroleum hub.
An oil tanker, MT Sea Wolf, will discharge Rwanda’s maiden G-to-G cargo at the Kipevu Oil Terminal 2, signalling the operational start of a new supply route for the landlocked country.
The new arrangement is expected to significantly increase Rwanda-bound petroleum volumes through Mombasa and the Kenya Pipeline Company (KPC) network, providing fresh business for the port, pipeline operator, transporters, storage facilities and other companies along the Northern Corridor.
Rwanda’s petroleum imports through the Northern Corridor are expected to rise from about 42,000 cubic metres in 2025 to more than 500,000 cubic metres annually, representing more than a tenfold increase.
Kenya and Rwanda signed a memorandum of understanding and two implementing agreements in June covering the importation, transportation and storage of refined petroleum products through Kenya. The agreements are designed to provide Rwanda with access to Mombasa and KPC’s petroleum infrastructure under a government-backed framework.
OQ Trading, the international energy and commodity trading arm of the Sultanate of Oman, will supply Rwanda with fuel under the G-to-G arrangement. OQ Trading is wholly owned by the Omani government. The energy company was established in 2006 and is headquartered in Muscat, the capital of Oman.
The shift to the Northern Corridor is significant because Rwanda has historically depended heavily on the Central Corridor through Tanzania for its petroleum supplies. Rwanda largely imports its fuel through Dar es Salaam, with about 30 per cent coming through Kenyan oil marketers.
The arrival of the vessel will provide Mombasa with additional volumes and an opportunity to increase utilisation of its petroleum handling facilities while strengthening the port’s role as a gateway to the Great Lakes region.
The deal also gives KPC a potentially larger transit market at a time when regional corridors are competing aggressively for cargo.
KPC operates a 1,342-kilometre pipeline network connecting Mombasa with Nairobi, Nakuru, Eldoret and Kisumu, with infrastructure capable of handling about 14 billion litres of petroleum products annually.
KPC has introduced a commercial incentive for Rwanda-bound cargo by extending the storage period from the normal 35 days to 90 days for an initial two-year period.
The longer storage window is intended to give Rwandan fuel importers greater flexibility in managing inventories and reduce pressure associated with rapid evacuation of cargo from Kenyan facilities. The storage concession was approved by the KPC board as part of measures to make the Northern Corridor more competitive.
The Mombasa port also hosts Uganda’s petroleum supplies under its G-to-G deal with Vitol Bahrain.
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