Tanzania: Developing petroleum storage facility

Business News By Leo Odera Omolo

Tanzania is currently developing a usd 30 million petroleum storage facility that once complete will be among the biggest fuel storage outlets in East Central and Southern Africa.

The operations manager of Tiper Refinary Paul Mzava,recently disclosed to newsmen that the facility,to be competed by the year 2010,will have the capacity to hold,300 million litres.

Tiper holds white or refined hydrocarbons such as petrol,diesel and Kerosene.

“In terms of white products this is going to be storage facility in the region. There are others in South Africa,Kenya and Zambia but there are for crude oil” said Mr.Mzava.

It was learnt last week that  installation of single buoy mooring (SBM) system at the outer anchorage of the Dar Es Salaam habour,estimated to cost usd 50 million has stalled for several years.

According to Mr.Mzara the new system and the new storage depot should go in tandem because hosting such a big facility requires a reliable discharging point that would act as alternative should be mooring at Karasini hicounter ant technical problem.

The SBM currently handles tankers with crude oil destined for Zambia for its Indeni refinery inNdola,which flows to Tanzania –Zambia pipeline tank forms Government and oil marketing companies have said that a new SBM should handle tankers of upto 200,000 tonnes a factors that would reduce cost per unit and stabilize fuel prices.

The final feasibility study on the new multi-line multiproduct SBM by Kaskoning Nederland R.V of the Nether lank was ready three years ago.

A Tanzania ports Authority study on the crude oil transfers pipeline connecting the SBM terminal at Ras Mjimwema to Kigamboni Condemned the facility as obsolete.

Tiper said the new facility would be more beneficial to the country if it granted an export processing zone status.

Rehabilitation and expansion of the tank forum was triggered by increased demand for petroleum products in the region. It is expected that international petroleum dealers including BP Singapore will join hands with Tiper to distribute the fuel stored at the Kigambeni facility to the region.

There are 35 tanks at Kigambeni with a total capacity  of 90 million litres making it the biggest facility in the region out of the 35 tanks,18 are operating while 13 have been rehabilitated at a cost of Tsh 17 billion (USD 15 million)

The work on the remaining four tanks –two with a capacity of 46 million litres and the other 36 million litres will start soon and should be completed by 2010 at a cost of usd 15 million

The new facility is coming at a time when the energy and water utilities Regulatory Authority is moving towards establishing a bulk oil procurement system.

Ends

leooderaomolo@yahoo.com.

 

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