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LegislationGazette notice

Gazette Notice No. 9272 of 2025

The Cabinet Secretary for Energy and Petroleum makes regulations governing midstream crude oil and natural gas pipeline and storage operations.

Official PDF · 3.0 MB

Whole issue, from Kenya Law. This notice starts on printed page 4214.

AI-extractedAgreement between models, not verified accuracy.

Items 8

  1. Legislation notice 1

    Link
    Issuing authority
    Cabinet Secretary for Energy and Petroleum
    Recommending body
    Energy and Petroleum Regulatory Authority (The Regulations are made on recommendation of the Authority.)
    Court
    Energy and Petroleum Tribunal (Defined in regulation 2.), National Environment Tribunal (Defined in regulation 2.)
    Body
    National Environment Management Authority (Defined as Environmental Authority; issues the Environmental and Social Impact Assessment license required for a construction permit application.), Kenya Maritime Authority (Defined in regulation 2.), National Land Commission (Defined in regulation 2.), National Construction Authority (Defined in regulation 2.)
    Regulations title
    Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations, 2025
    Application
    construction and operation of crude oil and natural gas pipeline and storage facilities and jetty in Kenya
    Construction permit requirement
    A person shall not undertake construction works or modification of crude oil and natural gas pipelines and bulk storage facilities, except in accordance with the terms and conditions of a valid Construction Permit issued by the Authority under the Petroleum Act
    Minimum lease period
    twenty-five (25) years
    Application determination period
    forty-five (45) days of receipt of such an application
    Permit validity before construction
    twelve (12) months from the date of issue
    Permit validity after construction commences
    a maximum period of sixty (60) months from the date of issue
    Maximum extension before construction
    Six (6) months
    Maximum extension after construction commences
    twenty-four (24) months
  2. Legislation notice 2

    Link
    Body
    Authority
    Court
    Tribunal (Appeals concerning the unsuitability of the site.)
    Licensing authority
    Licensing Authority
    Regulation 7 continuation
    (c) The applicant shall within thirty (30) days of receiving a notification of the nature of the conditions proposed to be imposed, give a written undertaking to the Authority that as the permit holder, the applicant shall abide by the stipulated terms and conditions of the Construction Permit; (4) The undertaking in sub-regulation (6) shall be in the format prescribed in Part I, Part II and Part III of the Second Schedule; (5) The Authority shall only issue the Construction Permit once the applicant has executed the undertaking in sub-regulation (6) failing which any Construction Permit granted shall be null and void; (6) The Authority shall reject an application under these Regulations where the application does not meet the requirements for granting a Construction Permit; (7) The Authority shall notify the applicant of such rejection in sub-regulation (9), specifying the reasons thereof within seven (7) days of such rejection; (8) Where the rejection in sub-regulation (10) relates to – (a) incomplete information, the applicant may make a fresh application providing the requisite information or documents; and (b) the unsuitability of the site, the decision of the Authority shall be final and if the applicant is not satisfied with the Authority’s decision, they may appeal to the Tribunal;
    Regulation 8
    Obligations of a Construction Permit Holder 8. (1) In undertaking construction of a pipeline or storage depot, the Construction Permit holder shall – (a) comply with the terms and conditions of the Construction Permit as stipulated by the Authority; (b) as applicable, engage only contractors who are licensed by the relevant authorities for their class of work; (c) ensure that the construction project is supervised by a Practising ProfessionalEngineer at a minimum; (d) comply with the Environmental Impacts Mitigation Plan approved by the relevant authorities; (e) comply with Government policy on local content; and (f) comply with directions issued by the Authority from time to time;
    Regulation 9
    Validity of the Construction Permit 9. (1) A construction permit is valid, subject to sub-regulations (9) and (10), for five (5) years and shall be in the form prescribed in the Second Schedule of these Regulations. (a) Where no construction has commenced, a construction permit shall be valid for a period of twenty-four (24) months. (b) Where construction work has commenced within the initial validity period under sub-regulation (9), a construction permit shall be valid for a maximum period of sixty (60) months.
    Regulation 10
    Application for Extension of Construction Permit 10. (1) A midstream permit holder may apply, at least sixty (60) days before expiry of the permit, by providing justification and supporting documents as may be required by the Authority, to extend the validity period of its construction permit to a maximum of— (a) another two (2) years under sub-regulation 9; or (b) three (3) years under sub-regulation 10. (2) An application under sub regulation (11) shall be accompanied by; (i) updated documents as required under sub-regulation 9(2); (ii) a summary of the project management timeline and milestones achieved during construction ; (iii) a justification for the renewal application and the required extension; and (iv) a fee prescribed in the Sixth Schedule. (3) A midstream permit holder shall make a new application under this regulation where its construction permit cannot be extended beyond the maximum periods provided by sub-regulation (11). (4) If the Authority rejects an application, it shall notify the project proponent and grant it thirty (30) days from the delivery of said notification to stop the construction .
    Regulation 11
    Application for Amendment of Construction Permit 11. (1) Where the Authority requires a midstream permit holder to, or where a midstream permit holder requires to amend construction permit, the midstream permit holder shall apply to the Authority to amend a construction permit (2) The construction permit may be amended to— (a) update its corporate name; (b) increase the maximum pipeline or storage capacity; (c) modify the pipeline route or the location of a pipeline facility or of a storage depot; (d) change a design approved under regulation 18; (e) make operational changes that alter the capacity of the pipeline or the storage depot; or (f) Make any other justifiable change. (3) An application under sub-regulation (15) shall be accompanied by updated documents as required under sub-regulation 9(2) when seeking to amend a construction permit; or (4) An application under sub regulations (15) and (16) shall be accompanied by a fee prescribed in the Sixth Schedule. (5) The Authority shall retain the same expiry date of a permit on its amendment.
    Regulation 12
    Emergency Works 12. (1) A construction permit shall be subject to the terms and conditions prescribed by the Authority and shall allow regular maintenance and emergency works. (2) After the completion of emergency works the contractor shall notify the Authority within thirty (30) days giving details of the works carried out.
    Licencing process
    PART III—LICENCING PROCESS (3) A person who wishes to operate a crude oil and natural gas pipeline and/or storage facility shall, before commencing such operation, obtain an operating license from the Licensing Authority. (4) The application shall be in the form prescribed in the Second Schedule, and shall be accompanied by— (a) a disclosure of the nominal capacity of the midstream pipeline or storage depot and the capacity available to Common Users. (b) an environmental liability policy providing insurance cover against damage caused by pollution and clean-up expenses, with a limit stipulated in guidelines issued and amended from time to time by the Authority. (c) a contractor’s all risk insurance policy as specified in guidelines issued and amended from time to time by the Authority; (d) policy providing insurance cover against damage caused by pollution and clean-up expenses, with a limit stipulated in guidelines issued and amended from time to time by the Authority. (e) a chart of the Licensee’s organization and operational structure; (f) a construction integrity and quality certificate from a qualified independent organisation; (g) a decommissioning plan;
  3. Legislation notice 3

    Link
    Body
    Authority
    Licensing application item h
    (h) a local content plan under section 50 of the Act for the period of operation;
    Licensing application item i
    (i) a proposed tariff and methodology for Common Users under Part VII of these Regulations; and
    Licensing application item j
    (j) a fee prescribed in the Sixth Schedule.
    Licensing subregulation 5
    (5) The Authority may, within thirty (30) days of receiving the application—
    Licensing subregulation 5 a
    (a) grant an operating licence and set a ceiling tariff accordingly, either without conditions or subject to such conditions as the Authority may deem fit; or
    Licensing subregulation 5 b
    (b) justifiably reject an application for grant of such licence.
    Licensing subregulation 6
    (6) An operating licence is valid for a maximum of twenty-five (25) years, subject to annual audits under regulation 32, and shall be in the form prescribed in the Third Schedule of these Regulations.
    Licensing subregulation 7
    (7) An operating licence shall be renewed by the Authority under Regulation 12 for as many times as necessary to meet the end of a pipeline or storage depot operating life.
    Regulation 13 1
    13. (1) A Common User shall, before entering into a transportation or storage agreement with a Licensee, apply to the Authority for an approval.
    Regulation 13 2
    (2) The licensee of a common user facility shall develop and submit to the Authority for approval a standard agreement to be signed by users.
    Regulation 13 3
    (3) The agreement in sub-regulation (2) shall contain the minimum requirements listed in the Eighth Schedule.
    Regulation 13 4
    (4) An application under sub-regulation (1) shall—
    Regulation 13 4 a
    (a) specify the name and address of the Common User;
    Regulation 13 4 b
    (b) be accompanied by the registration documents of the Common User;
    Regulation 13 4 c
    (c) state the corporate name of the Licensee;
    Regulation 13 4 d
    (d) state the name and route of the pipeline or the name and address of the storage depot;
    Regulation 13 4 e
    (e) state the volume of crude oil or natural gas to be transported or stored;
    Regulation 13 4 f
    (f) provide a declaration of the name plate capacity of the midstream pipeline or storage depot and the capacity that is available to Common Users;
    Regulation 13 4 g
    (g) be accompanied by an initialled final draft of the transportation or storage agreement; and
    Regulation 13 4 h
    (h) be accompanied by a fee prescribed in the Sixth Schedule.
    Regulation 13 5
    (5) The Authority shall consider every application received under this regulation and may, if satisfied with the information provided by the Common User, grant to it, within forty-five (45) days, an approval to use the common facility and to execute the transportation or storage agreement.
    Regulation 13 6
    (6) The Authority shall, in granting or rejecting an application under sub-regulation (3), analyse the draft agreement provided by the applicant and its compliance with the requirements prescribed by guidelines issued and amended from time to time by the Authority.
    Regulation 14 1
    14. (1) A Common User who intends to access a common user facility shall apply to the Authority under regulation 11.
    Regulation 14 2
    (2) A Licensee shall provide open access to its facility and apply tariffs equal to or lower than the ceiling tariff set by the Authority, provided that the Common User–
    Regulation 14 2 a
    (a) Notifies the Licensee and requests access to spare capacity available in its pipeline or storage depot;
    Regulation 14 2 b
    (b) Submits a copy of the notification under paragraph(a)(i) to the Authority, within seven (7) days from its delivery to the Licensee;
    Regulation 14 2 c
    (c) Undertakes to comply with access standards and criteria required by the Licensee and approved by the Authority; and
    Regulation 14 2 d
    (d) receives an approval under regulation 11;
    Regulation 14 2 e
    (e) the Licensee evaluates if its pipeline or storage terminal has sufficient available capacity to transport or store the volumes requested by the Common User; and
    Regulation 14 2 f
    (f) Negotiates with the Common User and agrees, within ninety (90) days from receiving a notification under paragraph(i)(1), the tariffs and contractual terms and conditions applicable to the access;
    Regulation 14 2 g
    (g) The Common User notifies the Authority, immediately after the period under paragraph (ii)(2), the result of the negotiation and evaluation under this regulation.
    Regulation 14 3
    (3) And, where applicable, the Authority–
    Regulation 14 3 a
    (a) successfully mediates any commercial, technical, or legal disagreement between the Licensee and the Common User, within thirty (30) days from receiving a notification under sub-regulation (2)(b)(iii); or
    Regulation 14 3 b
    (b) adjudicates an unresolved disagreement between the Licensee and the Common User, with the support of expert witnesses sponsored by the Licensee or the Common User.
    Regulation 14 3 c
    (c) The Authority shall direct a Licensee or a Common User, as the case may be, to–
    Regulation 14 3 d
    (d) adjust the terms of an agreement under regulation 11(5)(g) that breach an operating licence or that the Authority considers unreasonable or otherwise inappropriate;
    Regulation 14 3 e
    (e) allocate to Common Users any spare capacity in a facility; and
    Regulation 14 3 f
    (f) provide and implement solutions to technical issues that prevent transportation or storage for a Common User on an open access basis.
    Regulation 14 4
    (4) A Licensee shall inform the Authority when any action under sub-regulation (2)—
    Regulation 14 4 a
    (a) increases the operating expense of a pipeline or storage depot;
    Regulation 14 4 b
    (b) requires additional capital expense to increase transportation or storage capacity; or
    Regulation 14 4 c
    (c) creates insurmountable integrity and safety risks
    Regulation 14 5
    (5) The Authority shall consider any information under sub-regulation (4) and take appropriate action which may include adjusting the ceiling tariff of an operating licence to make the access of a Common User commercially viable.
    Regulation 14 6
    (6) A Licensee or any of its employees or agents who provides false or misleading information to the Authority under sub-regulation (5) commits an offence under the Act and these Regulations.
    Regulation 15
    15. The terms and conditions for open access shall be in accordance with X Schedule. The same shall be reviewed from time to time by the Authority.
    Regulation 16
    16. The Authority shall set ceiling tariffs in accordance with regulation 10 (3) (a) and the Licensee shall provide accounting and any other relevant information to the Authority to support its assessment of costs and determination of tariffs.
    Regulation 17 1
    17. (1) A permit holder, Licensee or Common User who intends to renew an—
    Regulation 17 1 a
    (a) operating licence; or
    Regulation 17 1 b
    (b) approval to use common facilities;
    Regulation 17 1 conclusion
    shall apply to the Authority at least thirty (30) days before its expiry date.
  4. Legislation notice 4

    Link
    Body
    Authority, Kenya Bureau of Standards
    Court
    Tribunal
    Regulation 17 2
    (2) An application under sub regulation (1)(a) shall be accompanied by— (a) updated documents as required under sub-regulation 10(2); (b) a summary of the integrity management system of the operating asset, highlighting its fit-for-service condition and remaining life; (c) information on the operational history of the facility, including details of incidents, if any; (d) environmental audit reports; (e) an updated decommissioning plan; (f) history of legal disputes in the past five (5) years; and (g) a fee prescribed in the Sixth Schedule.
    Regulation 17 3
    (3) An application under sub regulation (1)(b) shall be accompanied by a fee prescribed in the Sixth Schedule.
    Regulation 17 4
    (4) An operating licence or an approval to use common facilities remains valid from the date of application under sub-regulation (1) to the date the Authority approves or rejects its renewal.
    Regulation 17 5
    (5) If the Authority is satisfied that the project proponent, Licensee, or Common User continues to meet the requirements of the permit, licence or approval, the Authority will renew it within thirty (30) days of receiving the application.
    Regulation 17 6
    (6) If the Authority rejects an application, it shall notify the Licensee or Common User and grant it thirty (30) days from the delivery of said notification to stop the cooperation, or use.
    Regulation 17 7
    (7) Where the Authority requires a Licensee to, or where a Licensee requires to amend operating license, the Licensee shall apply to the Authority to amend an operating license.
    Regulation 17 8
    (8) A licensee shall apply to the Authority to amend an operating licence to— (a) adjust the maximum pipeline and storage capacity; (b) modify the pipeline route or the location of a pipeline facility or of a storage depot; (c) Update its corporate name; (d) make operational changes that alter the capacity of the pipeline or the storage depot (e) modify pipeline or storage tariffs; or (f) Make any other justifiable change.
    Regulation 17 9
    (9) An application under sub-regulation (7) shall be accompanied by updated documents as required under sub-regulation 10(2) when seeking to amend an operating licence.
    Regulation 17 10
    (10) A Common User may apply to the Authority to amend an approval to use common facilities to update its corporate name, and its application shall be accompanied by updated documents as required under sub-regulation 10(2).
    Regulation 17 11
    (11) An application under sub-regulations (7), (8) or (9) shall be accompanied by a fee prescribed in the Sixth Schedule.
    Regulation 17 12
    (12) The Authority shall retain the same expiry date of a licence on its amendment.
    Regulation 18 heading
    Transfer of a License Permit
    Regulation 18 1
    18. (1) A licensee shall not transfer or otherwise divest any rights, powers or obligations conferred or imposed upon the licensee by the licence or permit without the consent of the licensing authority.
    Regulation 18 2
    (2) The licensing authority may, on application by any of the following persons, transfer a licence or permit— (a) in the case of a death of the licensee, to the legal representative; (b) in the case of the bankruptcy of the licensee or assignment for the benefit of the licensee’s creditors generally, to the lawfully appointed trustee or assignee; (c) in the case of a corporation in liquidation, to the lawfully appointed liquidator; (d) in any case where the licensee becomes subject to a legal disability, to any person lawfully appointed to administer the licensees’ affairs; or (e) in the case of voluntary transfer of the undertaking, to the new owner of the undertaking.
    Regulation 18 3
    (3) The licensing authority shall satisfy itself of the legal, technical and financial competence of the transferee to carry out the undertaking.
    Regulation 18 4
    (4) The transferee shall undertake in writing to comply with the conditions of the licence or permit.
    Regulation 18 5
    (5) The licensing authority shall not withhold any consent to any application to transfer unless it has reason to believe that public interest is likely to be prejudiced by the transfer.
    Regulation 19 heading
    Suspension and Revocation
    Regulation 19 1
    19. (1) The licensing authority may suspend or revoke an operating license or construction permit where—
    Regulation 19 2
    (2) The undertaking or the execution of the works related thereto has not commenced at the expiry of the period specified in the licence or permit, or at the expiry of any extended period which the Authority may allow— (a) it is satisfied that the licensee is either not operating in accordance with the terms and conditions of the licence, permit or the provisions of this Act; or (b) the licensee is adjudged bankrupt.
    Regulation 19 3
    (3) Unless otherwise specified in the licence or permit, the licensing authority may give a licensee fourteen days’ notice to show cause why the licence or permit should not be revoked.
    Regulation 19 4
    (4) A notice under sub- regulation (2) shall set out the relevant condition of the licence or permit or the requirement of the Act to which the breach relates; (a) specify the acts, omissions or other facts which, in the opinion of the Authority or the licensing authority, constitute a contravention of the conditions of the licence or permit or requirements of the Act, and the reasons why the licensing authority is of the opinion that any of the circumstances mentioned under subsection (1) have occurred or arisen; and (b) be served upon the licensee at the licenses’ principal place of business and shall take effect from the date of service.
    Regulation 19 5
    (5) The licensing authority shall determine the matter within thirty (30) days from the expiry of the notice.
    Regulation 19 6
    (6) A suspension or revocation of a licence or permit shall not indemnify the licensee against any penalties for which such person may have become liable under the Act
    Regulation 20 heading
    Display of Licenses and Permits
    Regulation 20 1
    20. (1) A licensee or permit holder shall cause to be displayed within the premises, the licence or permit, or a certified copy.
    Regulation 20 2
    (2) A licensee or permit holder who contravenes subsection (1) commits an offence and shall be liable on conviction to a fine not exceeding one million shillings
    Regulation 21 heading
    Grievance and Redress
    Regulation 21 1
    21. (1) Where the licensing authority refuses to grant a permit under this section, it shall notify the applicant of such refusal specifying the reasons thereof and shall deliver such notice to the applicant.
    Regulation 21 2
    (2) Where the applicant is aggrieved by the decision of the Licensing Authority, the applicant may appeal to the Tribunal within thirty (30) days of receipt of such conditions or decision.
    Regulation 22 heading
    Standards
    Regulation 22
    22. An applicant shall prepare detailed layout plans and specifications in accordance with Standards approved by the Kenya Bureau of Standards (KEBS) and Best Petroleum Industry Practices, as the case may be.
  5. Legislation notice 5

    Link
    Body
    Kenya Bureau of Standards (Approves Standards for construction, operation and maintenance.), Authority (Exercises the regulatory functions described in the printed provisions.)
    Regulation 23
    Location and Route 23. The applicant shall provide a detailed survey map of the pipeline route, and the proposed storage facility location as stipulated in the Petroleum Land Access Regulations, 2025.
    Regulation 24
    Construction 24. (1) The construction permit holder shall comply with the relevant Laws, Regulations, Standards approved by the Kenya Bureau of Standards (KEBS) and Best Petroleum Industry Practices during the construction. (2) The construction permit holder shall inform the Authority, at least seven (7) days in advance, of the planned construction and detail to start the construction of its pipeline or storage depot;
    Regulation 25
    Operation and Maintenance 25. The licensee shall undertake operation, and maintenance works in compliance with the relevant Laws, Regulations, Standards approved by the Kenya Bureau of Standards (KEBS) and Best Petroleum Industry Practices.
    Regulation 26
    Decommissioning 26. The licensee shall undertake decommissioning in compliance with the Petroleum Operations Decommissioning Regulations.
    Regulation 27
    Record Keeping and Reports 27. (1) A Licensee shall keep accurate records according to best petroleum industry practices as prescribed in schedule XX (2) A Licensee shall, unless otherwise directed by the Authority, keep the records under sub-regulation (1) for a period of seven (7) years from the date the record is made. (3) The Authority may request copies of any record kept by the Licensee shall submit certified copies as prescribed by the Authority within thirty (30) days.
    Regulation 28
    Inspections 28. (1) The Authority may appoint qualified representatives to act as technical inspectors and provide them with an identification document stating– (a) that he or she is an inspector for the purposes of the Act and these Regulations; (b) the term of his or her appointment; and (c) the geographical jurisdiction of his or her technical inspections. (2) A technical inspector may, after providing necessary identification documents– (a) enter any area and facility under a permit or licence; (b) inspect and test any pipeline or storage depot; (c) take samples of any substance being transported by a pipeline or stored in a tank; (d) require a Licensee to produce books, records, documents, maps, or plans relating to a pipeline or a storage depot; and (e) inspect, take extracts from, and make copies of any of books, records, documents, maps, or plans under sub-regulation 2 (d).
    Regulation 29
    Audits and Inspections 29. (1) A pipeline or a storage depot shall be periodically inspected by its Licensee, in accordance with best petroleum industry practices, the standards under regulation 17 or following the recommendation of a manufacturer, to verify compliance. (2) The Authority may carry out random or scheduled technical inspections, and an inspector performing said inspection shall provide a copy of their report to the Licensee as soon as reasonably practicable and in any event no later than thirty (30) days from the end of the inspection. (3) The Authority shall carry out a comprehensive operational audit of the midstream pipeline or storage depot at least once every twelve (12) months. (4) A Licensee shall give an inspector free access to its pipeline or storage depot, including any related records, equipment, ancillary installations, and infrastructures. (5) A Licensee or any of its employees or agents who obstruct, interfere with or refuse to provide an inspector access to any premises or documents commits an offence under the Act and these Regulations. (6) If an inspector becomes aware, during an operational audit or technical inspection, of problems in the pipeline or storage depot or of any non-compliance with the Act, these Regulations or the terms and conditions of a midstream operating licence, the Authority shall– (a) notify the Licensee; (b) specify the problem found or the provision breached; (c) set a timeframe in accordance with the license for the Licensee to rectify the problem or cure the breach; and (d) commence a process under regulation 15 to suspend or revoke the license, if applicable. (7) The Authority may also appoint a qualified technical inspector to continuously monitor the progress of the construction of a midstream pipeline or storage depot. (8) A permit holder shall give free access to a technical inspector appointed under sub-regulation (7) to carry out scheduled or random inspections at its construction site, including access to any related records, equipment, ancillary installations, and infrastructures. (9) A permit holder or any of its employees or agents who obstruct, interfere with, or refuse to provide a technical inspector access to any premises or documents commits an offence under the Act and these Regulations.
    Regulation 30
    Inspection Report 30. (1) The Authority shall, within thirty (30) days from technical inspection under regulation 32(2), issue an inspection report to a Licensee. (2) The inspection report issued under sub-regulation (1) is valid based on the recommendations, without prejudice to any further inspections carried out by the Authority. (3) The Authority shall, within thirty (30) days from an technical and EHS audit under regulation 32 (3), issue an audit report to a Licensee. (4) The audit report issued under sub-regulation (3) is valid for one (1) year, without prejudice to any further audits carried out by the Authority.
    Part heading
    PART VI – OFFENCES AND PENALTIES
    Regulation 31
    General Penalties 31. (1) The Authority may, without prejudice to any penalty, imprisonment, suspension or revocation that may be imposed under the Act to a permit holder, Licensee, Common User or any of its employees and agents, suspend or revoke a licence, permit or approval issued to a permit holder, Licensee or Common User who contravenes any provision of these Regulations (2) A person who contravenes any provisions of these regulations commit an offence and shall be liable upon conviction to a fine not exceeding 1 million (Offences Schedule)
    Regulation 32
    Disclosure of Information 32. (1) No person shall obstruct, hinder, withhold information or provide false information as may be requested by the Authority (2) A person who contravenes sub-regulation (1) commits an offence and shall be liable on conviction to the fines and penalties prescribed in the Eighth Schedule
    Regulation 34
    Appeals 34 (1) A person has the right to appeal against the decision of the Authority, where the Authority— (a) refuses to grant or renew a licence, permit or certificate or revokes a licence, permit or certificate; or
  6. Legislation notice 6

    Link
    Body
    Authority (Authority administering the Regulations.), National Construction Authority (Approvals listed among documents enclosed with a construction permit application.)
    Court
    Tribunal (Hears appeals against the Authority's decisions.)
    Issuing authority
    Cabinet Secretary (Approves ownership changes, may update fines, and may issue and update guidelines.)
    Appeal period days
    thirty (30) days
    Appeal
    (2) A person aggrieved by the reasons in sub-regulation (1), may appeal to the Tribunal within thirty (30) days of receipt of the Authority's decision
    Part heading
    PART VII – MISCELLANEOUS
    Ownership
    35. (1) A Licensee shall be a body corporate registered under the laws of Kenya. (2) Any assignment, transfer or change in voting rights or sale of shares in the entity owning a midstream pipeline or storage depot or a Licensee shall be approved by the Cabinet Secretary as recommended by the Authority.
    Procurement
    36. A permit holder or a Licensee shall procure all goods, works and services required for the construction or operation of a pipeline or storage depot in accordance with its local content plan under regulations 9 (2) (i) and 10 (2) (i).
    Confidentiality
    37. (1) Information obtained by the Cabinet Secretary or the Authority relating to any matter under these Regulations may be published or otherwise disclosed to a third-party—
    Disclosure
    (2) Disclosure of any information under this regulation is subject to the provisions of the Access to Information Act (Cap. 7M).
    Register
    38. (1) The Authority shall keep a register of all construction permits and operating licenses it issues and shall individually record their—
    Register access
    (2) Any person may, inspect the register during the Authority’s working hours.
    Register fee
    (3) Before a person gains access to the register, he or she shall pay a fee prescribed in the Sixth Schedule.
    Fee exemption
    (4) The fee under sub-regulation (3) does not apply to government ministries and government departments and constitutional and statutory bodies carrying out investigative, research and oversight responsibilities.
    Monetary correction
    39. (1) The Authority may, from time to time, update fees to capture any material escalation of its administrative costs, currency fluctuation or inflation. (2) The Cabinet Secretary may, from time to time, update fines set under these Regulations. (3)Fees and fines under these regulations shall be paid via bank transfer into a designated government account to be informed by the Authority.
    Lacunae
    40. Matters not covered in the Act, these Regulations, permits or licences and which concern midstream petroleum operations shall be determined by the Authority on a case-by-case basis.
    Guidelines
    41.The Cabinet Secretary and the Authority may issue and update guidelines from time to time for the implementation of these Regulations.
    Application intro
    This application is hereby submitted under the Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations, 202Xfor the construction of a pipeline or storage depot as follows.
    Electronic submission
    The electronic versions of the documents listed above shall be submitted in the form and manner prescribed by the Authority
  7. Legislation notice 7

    Link
    Subject
    Construction permit and operating licence forms for midstream crude oil and natural gas pipeline and storage operations.
  8. Legislation notice 8

    Link
    Body
    Authority (Prescribes electronic submission requirements and may update fees.), Kenya Revenue Authority (Service agreements must address settlement of payments due to Kenya Revenue Authority.)
    Issuing authority
    Cabinet Secretary (May update penalties in accordance with regulation 43.)
    Electronic submission
    The electronic versions of the documents listed above shall be submitted in the form and manner prescribed by the Authority.
    Fee updates
    The Authority may update any and all fees from time in accordance with regulation 43, and the updated fees shall take effect on the day of their publication on the Authority’s website or in the Gazette, whichever occurs first.
    Penalty updates
    The Cabinet Secretary may update any and all penalties from time in accordance with regulation 43, and the updated penalties shall take effect on the day of their publication on the Authority’s website or in the Gazette, whichever occurs first.
    Service agreement requirement
    A Common User Facility Licensee shall enter into a service agreement with Users and shall, on the minimum, contain the following provisions as prescribed by Regulation 11(2), (3) and (4) of these Regulations

Schedule 125 rows

Appeals — continuation of sub-regulation (1)
(b)imposes conditions on a licence, permit or certificate; or
(c)refuses to replace or amend a licence, permit or certificate; or
(d)suspends or revokes a license, permit or certificate.
Confidentiality — 37. (1)
(a)when the project proponent or Licensee from whom the information was obtained gives a prior approval to the Cabinet Secretary or the Authority; or
(b)when the disclosure and use of such information is for an authorised purpose established under section 104 of the Act.
Register of Licenses and Permits — 38. (1)
(a)terms and conditions;
(b)amendments;
(c)duplicates;
(d)suspensions or revocations; and
(e)accompanying fees paid to the Authority.
FIRSTSCHEDULE Regulations 9(2) and 9(8) CONSTRUCTION PERMIT APPLICATION FORM
Project proponent:(full corporate name)
Address:(full corporate address)
Nature:(transportation pipeline or storage)
Product:(crude oil or natural gas)
Volume:(maximum pipeline or storage capacity)
Location:(pipeline route or address of storage depot)
Enclosed documents (tick the boxes as appropriate)
o copy of registration and tax documents
o detailed layout plans and specifications prepared by a professional engineer
o county government approvals
o National Construction Authority approvals
o safety case
o evidence of technical and financial capabilities
o local content plan
o contractor’s all risk insurance policy or a preliminary policy accompanied by an undertake to provide a contractor’s all risk insurance policy within sixty (60) days after the date of the grant of a permit
o points between which the pipeline is to run
ocopy of environment impact assessment licence
ocopy of authorisation from the Cabinet Secretary
o land survey
o marine survey
o copy of fee payment receipt
o Electronic data files with Global Positioning System (GPS) latitude and longitude coordinates of the proposed pipeline route or the storage depot.
a declaration of the nominal capacity of the midstream pipeline or storage depot and the capacity that is available to Common Users.
copy of environmental liability policy
copy of construction integrity and quality certificate
copy of fee payment receipt
third party all risks insurance policy or a preliminary policy accompanied by an undertake to provide a third party all risk insurance policy within sixty (60) days after the date of the grant of a licence
organizational structure
local content plan
proposed tariff and methodology for Common Users
Electronic data files with Global Positioning System (GPS) latitude and longitude coordinates of the proposed pipeline route or the storage depot.
DECLARATION
1.I have read and understood the relevant sections of the Petroleum Act, 2019 and the Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations, 2021 and agree to abide by them.
2.I hereby certify that the information given above is to my knowledge true and accurate.
3.I understand that it is an offence to give false information in an application for a construction permit.
4.I commit to conduct an honest midstream petroleum business.
5.I acknowledge that our company shall only construct and commission a pipeline or storage depot as approved by the Authority.
6.I acknowledge that our company shall not start constructing a pipeline or storage depot before obtaining a permit from the Authority.
Date:(dd-mm-yyyy)
Signature:(project proponent’s representative)
1.I have read and understood the relevant sections of the Petroleum Act, 2019 and the Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations, 202X and agree to abide by them.
3.I understand that it is an offence to give false information in an application for an operating licence.
5.I acknowledge that our company shall only operate a pipeline or storage depot as approved by the Authority.
6.I acknowledge that our company shall not put a pipeline or storage depot into operation before obtaining a licence from the Authority.
FORM OF PERMIT
Construction permit no.:xxxx/yyyy
This construction permit is hereby granted under the Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations, 202x exclusively to the named midstream permit holder to carry on midstream petroleum businesses as follows.
Midstream permit holder:(full corporate name)
Expiry date:(dd-mm-yyyy of first expiry date)
Renewal:(dd-mm-yyyy of new expiry date in case of renewal)
FORM OF PERMIT — Terms and conditions
1.The midstream permit holder shall—
(a)start works within twenty-four (24) months from issuance of this permit, unless when an unforeseen circumstance arises;
(b)inform the Authority about an unforeseen circumstance that can delay the start of works and may request an extension to the period of twenty-four (24) months mentioned above;
(c)carry out its regular works and not deviate from its approved project unless during an emergency;
(d)notify the Authority as soon as practicable after starting any emergency works;
(e)submit detailed information and drawings of any emergency works to the Authority within sixty (60) days from starting said works for the Authority’s approval in reasonable time;
(f)carry out a satisfactory test before notifying the Authority about the completion of the project’s construction;
(g)comply with all applicable environment, safety and health laws and regulations and Environment I mpact Assessment licenses; and
(h)shall pay all necessary fees associated with this permit on a timely basis.
2.The Licensee is allowed to—
(a)construct and commission a pipeline or a storage depot—
(i)of the product and volume specified in this permit;
(ii)of the design specified in its approved project;
(iii)along the route or in the position specified in its approved project, including in relation to the seabed; and
(b)carry out works and do all other things in the location specified in this permit as are necessary for, or incidental to, the construction.
3.The Licensee is subject to liability under tort and the contract laws.
4.This permit is valid for five (5) years and may not be altered, revised, or modified, except with the consent of the project proponent.
Date of issuance:(dd-mm-yyyy of issuance)
Signature:(Authority’s representative)
SECOND SCHEDULE — Regulations 10(2) and 10(4) — OPERATING LICENCE — FORM OF LICENCE
Operating licence no.:xxxx/yyyy
This operating licence is hereby granted under the Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations, 202X exclusively to the named Licensee to carry on midstream petroleum businesses as follows.
Licensee:(full corporate name)
Pipeline tariffs or storage charges:(if any)
FORM OF LICENCE — Terms and conditions
1.The Licensee shall—
(a)start operations within six (6) months from issuance of this licence, unless when an unforeseen circumstance arises;
(b)inform the Authority about an unforeseen circumstance that can delay the start of operations and may request an extension to the period of six (6) months mentioned above;
(c)comply with all applicable environment, safety and health laws and regulations;
(d)pay all necessary fees associated with this licence on a timely basis;
(e)notify the Authority as soon as practicable after starting any emergency works; and
(f)submit detailed information and drawings of any emergency works to the Authority within sixty (60) days from starting said emergency works for the Authority’s approval in reasonable time.
(a)operate the pipeline or storage depot specified in this licence;
(b)operate any station, system, equipment, installation, and infrastructure associated with the pipeline or storage depot; and
(c)carry out works and do all such other things in the location specified in this licence as are necessary for, or incidental to, the operation.
4.This licence is valid for twenty-five (25) years and may not be altered, revised, or modified, except with the consent of the Licensee.
APPLICATION FORM
This application is hereby submitted under the Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations 202x for the operation of a pipeline or storage depot as follows.
Construction permit:(number)
THIRD SCHEDULE — FEES
RegulationDescriptionFee (KSh.)
4(3)Approval for reconnaissance studies500,000.00
6(2)Authorisation for midstream projects1,000,000.00
9(2)Construction permit2,000,000.00
10(2)Operating licence2,000,000.00
11(5)(h)Approval to use common facilities500,000.00
9 (17)Renewal of construction permit1,000,000.00
12(2)(g)Renewal of operating licence1,000,000.00
12(3)Renewal of approval to use common facilities500,000.00
12(10)Amendment of permits, licences and approvals500,000.00
15(4)Replacement of permits and licences100,000.00
39(3)Access to register of licences and permits15,000.00
FOURTH SCHEDULE — OFFENCES AND PENALTIES
RegulationOffencePenalty (KSh.)
6(7)Undertaking a midstream pipeline or storage project without authorisationNo less than 10,000,000.00
15(4)Failure to display a licence or permitNo more than 1,000,000.00
25(3)Obstruction, encroachment, squatting or interference with landNo less than 1,000,000.00
27(6)False or misleading information to increase a ceiling tariffNo more than 10,000,000.00
31(5)Failure to give access to Licensee's premisses or documents during inspectionNo less than 10,000,000.00
31(9)Failure to give access to midstream permit holder's premisses or documents during inspectionNo less than 10,000,000.00
33(2)General offenceNo less than 5,000,000.00
FIFTH SCHEDULE
Licensee obligations and responsibilities.
Users’ obligations and responsibilities
Ownership of products and custodial responsibilities
Processes and responsibilities for settlement of payments due to Kenya Revenue Authority and any other statutory payments levied on products
Procedures for receipt of products including receipt scheduling, quantity measurements, product quality specifications and certification
Procedures for coordination and scheduling of products deliveries
Stock accounting procedures, including measurements, stock variances, and reporting
Allowable stock losses for each logistics service contracted
Product quality management including standards, specifications, methods for determination
Procedures for handling of off-specification products and dispute resolution process
A list of tariffs for each logistics service offered, billing, and payments
Process for handling disputes and claims
Situations constituting Force Majeure.
Procedures for governing facility access, security, safety, environment, and hygiene

Everyone named

Court 2Energy and Petroleum Tribunal · National Environment Tribunal
Bodies 6National Environment Management Authority · Kenya Maritime Authority · National Land Commission · National Construction Authority · Kenya Bureau of Standards · Kenya Revenue Authority
Issuing authorityCabinet Secretary for Energy and Petroleum
Recommending bodyEnergy and Petroleum Regulatory Authority
Licensing authorityLicensing Authority
Also named 3Authority · Tribunal · Cabinet Secretary
Law 5Petroleum Act · Energy Act · Environmental Management and Co-ordination Act · National Land Commission Act · National Construction Authority Act

Corrections 0

Corrected by
No corrigendum in the issues we hold.
Cites
Petroleum Act, Energy Act, Energy Act, Environmental Management and Co-ordination Act, section 3 of the Kenya Maritime Authority (Cap. 370), National Land Commission Act, National Construction Authority Act, Environmental Management and Co-ordination Act, section 75 and sub-section 87(1) of the Act, Petroleum Land Access Regulations, 2025, Petroleum Operations Decommissioning Regulations, regulations 9 (2) (i) and 10 (2) (i), Sixth Schedule, Regulations 9(2) and 9(8)

Cite

Kenya Gazette Notice No. 9272 of 2025, Vol. CXXVII No. 150, 10 July 2025, p. 4214.

Permalink funua.com/notices/2025/9272/.

About this data

Source
Official PDF of Vol. CXXVII No. 150, from Kenya Law
Extracted by
AI models
Model audit
An independent model agreed with 98 to 99% of compared values for land and succession notices, 97% overall. Agreement between models, not verified accuracy.
Review flag
None on this notice

Filed under: Legislation, 2025 · July 2025 · Energy and Petroleum Tribunal · National Environment Tribunal · Vol. CXXVII No. 150