Wednesday, April 24, 2024

Rehabilitation of TAZAMA Pipeline will cut down fuel prices – Frank Tayali

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The Government through the Ministry of Transport and Logistics says it is in the process of revamping the TAZAMA Pipeline which will help reduce the prices of fuel in the country.

Minister of Transport and Logistics Frank Tayali explained that this is the reason the government shutdown Indeni Petroleum Refinery Company in Ndola to pave the way for adjustments.

Mr Tayali added that once the TAZAMA pipeline is re-opened, the pump price of fuel will reduce, with the economy becoming favourable for all Zambians.

“Once TAZAMA pipeline is revamped, 80 percent of fuel required in the country will be transported through the channel while the remaining 20 percent will be transported by road using tanker trucks,” he said

The Minister stated that transporting fuel using the road is costly, a situation he cites to be a contributing factor to the high fuel prices in the country.

He disclosed that the Government shut down Indeni Petroleum Refinery Company in Ndola to revamp TAZAMA Pipeline.

Meanwhile, Mr Tayali disclosed early this week that Indeni Petroleum Refinery was incurring about 87 Million United States Dollars per month the time it was operational.

In November last year, the Government put Indeni Petroleum on care and maintenance and announced that it had started looking at modalities that will reduce the cost of transporting petroleum products and improve efficiency in the delivery of petroleum products.

Speaking at an interactive meeting with UPND members in Ndola early this week, Mr Tayali mentioned that the Government decided to shutdown Indeni Petroleum in order to revamp TAZAMA Pipeline which will help reduce the price of fuel in the country.

Mr Tayali added that once revamped, 80 percent of fuel required in the country will be transported through TAZAMA pipeline while the remaining 20 percent will be transported by road using tanker trucks.

This month of December, Tanzania and Zambia have agreed to beef up security along their common oil pipeline as they finalise plans for the facility to start transporting refined petroleum products.

The Tanzania Zambia Mafuta (TAZAMA) pipeline transported crude petroleum products from Dar es Salaam to Zambia, where they were processed at the Indeni Refinery in Ndola, Zambia.

However, as part of President Hakainde Hichilema’s reform plan, the Government ceased importing crude feedstock and instead switched to refined imported petroleum products. The country began importing refined petroleum products through Dar es Salaam, Mozambique, South Africa, and Namibia, thereby rendering the Tazama pipeline obsolete.

In a new effort to up Zambia’s fuel imports through Dar es Salaam, the two countries have devised a plan that will see the 1,710-kilometre TAZAMA Pipeline handling diesel.

In preparation for the exercise, Tanzania’s Energy Minister January Makamba held talks with his Zambian counterpart Peter Kapala, Zambia’s Defence Minister Ambrose Lufuma and Permanent Secretaries for the two Ministries from both countries in Dar es Salaam where they agreed to beef up security along the pipeline before it starts transporting diesel.

The Chairman of the two-day meeting and Tanzania’s Energy minister, Mr Makamba, said that they had agreed on several issues in their effort to improve security along the pipeline.

“I thank my friend, Mr Makamba for this. It’s a new and positive development that Zambia will get its diesel through the Tazama pipeline as opposed to the usual crude petroleum products. This is not a small achievement,” he said

Mr Kapala said that Zambian authorities would return to Tanzania on a later day and sign an agreement on how Zambia could get natural gas from its neighbour.

“We expect to get into another agreement with Tanzania on natural gas and we seek to start building a natural gas pipeline next year. The aim is to ensure that Zambia gets natural gas from Tanzania,” he said

According to Mr Lufuma, the meeting sought to ensure that there was enough security along the Tazama Pipeline, adding that the meeting was fruitful.The challenges include sensitizing locals near the pipeline to the need to protect it, increasing the number of security officers along the pipeline, and utilising drones to properly patrol the facility.

The Ministers also agreed to form a joint committee of Ministers and Permanent Secretaries who will make a close follow-up on the recommendations so that actual implementation can start within a period of 45 days.

“Basically, when you use the pipeline to transport diesel, you must first boost security because some unscrupulous individuals may want to play dirty tricks by tampering with it [the pipeline] and stealing the product [fuel]. It is not the same as transporting crude oil which no one can do anything with it until it gets refined,” he said

He said the Zambian Government has made a wise decision to start transporting diesel via the Tazama Pipeline. This, he said, ensures that despite the ongoing reforms in Zambia, Tanzania will remain one of the gateways for fuel to reach Zambia.

“So basically, the decision will reach today will ensure that Zambia continues to get its diesel via the Dar es Salaam port and that the product must safely reach the neighbouring country,” he said

In his remarks, Mr Kapala termed the meeting as a historic one, adding that they have agreed on the best ways to boost security along the TAZAMA Pipeline.

7 COMMENTS

  1. “Tayali disclosed early this week that Indeni Petroleum Refinery was incurring about 87 Million United States Dollars per month the time it was operational”
    This is just another political lie, he says cost of fuel will be reduced when TAZAMA starts pumping refined fuel from crude when the price was hardly competitive even the Refinery was operating at high peak back in the day. They will still use the same middlemen to buy the refined products and will still rely on road haulers to keep the rich and elite happy. How do you take joy in procuring refined goods when you can process it yourself? We have heard this before…once completed that pipeline would need to be paid for and gues who they will pass the costs to?

  2. Tayali, you better shut up and stop promising that ” the pump price of fuel will reduce”, and you know very well how the noisy opposition will jump on you once they dont see the reduction.
    You people. you don’t learn from your mistakes. Until now you failed to explain to Zambians why a bag of meal is NOT costing K50, instead you starting to bring in other form of “Hope”. Zambians don’t like to dream of a better future, they live Now and Then. So when you shed some form of hope, they consider that as a Promise and they will bite you for that.

  3. This govt and HH were talking about creating value addition industries ….where is the value in pumping refined fuel and other products in that pipeline?

  4. 1710 Kilometre pipeline. This is a recipe of vandalism. Who is going to offer security to the pipeline? Are you going to protect the pipes from scrupulous criminals. Tayali, just come to Ndola and repair Minsundu Road which looks as if Zambia is at war. Stop yapping things which you cannot fulfill like your boss.

  5. And the Kwacha has begun falling in line with imperialil requirements. Watch it fall to 25 per dollar now

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