The jetty is expected to increase efficiency in delivery of imported refined fuel for Kenya's domestic use and export to Uganda, Rwanda, Burundi and eastern Democratic Republic of Congo.
The Kenya Ports Authority (KPA) plans to build the jetty near Dongo Kundu from October to December 2019 to handle larger tankers and relocate existing Kipevu Oil Terminal from Port Reitz.
KPA head of procurement Yobesh Oyaro said Denmark-based Niras will supervise building of the new terminal to replace the existing facility near berth 19 container terminal.
He said relocation from Port Reitz to an offshore site will to allow offloading of tankers with a capacity of 170,000 tonnes to improve port efficiency and meet the region's growing demand for refined oil products.
The new island terminal will have four berths capable of facilitating import as well as export of crude oil, heavy fuel oil, dual purpose kerosene, diesel and petrol. The terminal is expected to make Mombasa sea port a major trading hub.
The terminal will have a crude oil pipeline connecting it with the Changamwe-based Kenya Petroleum Refineries Ltd (KPRL). Early production of waxy oil found in South Lokichar basin, is set to start in June 2017, entails use of the road to Eldoret and rail transport to KPRL in Mombasa for storage ready for export.
The new island terminal will have four other pipelines to pump heavy fuel oil, dual purpose kerosene, diesel and petrol to the Kipevu storage facility that handles bulk imports.
The existing terminal, built in 1963, lacks the capacity to meet the growing regional demand for oil products -- estimated at 450 million litres monthly -- it has only one berth handing tankers carrying up to 80,000 metric tonnes of imported refined fuel.
Kipevu oil storage facility has space for 326 million litres of fuel but its operational capacity is 269 million litres. The facility is operated by state owned Kenya Pipeline Company (KPC) and receives imported refined fuel.
KPC also plans to more than double the capacity of its fuel terminal in Nairobi to cater for the extra flow of petroleum products when a new pipeline linking the capital with Mombasa becomes operational in 2016.
The oil firm said it will construct four additional storage tanks with a total capacity of 133.52 million litres, equivalent to 22 per cent of its present total national capacity of 612.32 million litres.
The location of Kipevu is not safe as there is no space to increase the numbers of tanker berths.
Niras in 2012 conducted the first relocation study with KPA and it was agreed that new terminal should be placed away from the existing port terminals.
Niras was in 2014 awarded the contract to design the new offshore jetty.
Niras is in charge of preparation of tender documents for constructions works including electrical and mechanical installations. The scope covers pipelines and loading arms once the building contractor is selected.
Mr Oyaro said the new offshore jetty will comprise steel pile-supported concrete loading platforms covering about 1,400 square metres and berthing and mooring facilities with fire fighting and other requisite equipment.
A supervisory control and Data Acquisition system will be installed to gather and analysis real-time data on operations of the jetty with supporting infrastructure prior to sending the information to a central data base.