Wednesday, May 29, 2024

Remodeled Indeni Energy Company in the Copperbelt Province will help to lower the cost of fuel

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Energy Minister Peter Chibwe Kapala has said the revival of Tazama Pipeline and remodeled Indeni Energy Company in the Copperbelt Province will help to lower the cost of fuel in the country.

Eng. Kapala on Monday morning officially opened the valve for the diesel at Tazama Pipelines Limited at Bwana Mkubwa Terminal in Ndola.

Earlier on Sunday afternoon, Mr. Kapala commissioned the commencement of the processing of commingled feedstock by Indeni Energy Company in Ndola.

Remodeled Indeni Energy Company has commenced oil refining operations after 18 months of shut down.

“These developments mean that we can successfully use local engineers to put back the plant. Also it will open up to the importation of finished products mainly diesel and we anticipate that the price of diesel will come down. That is what we want. That will result in reducing the cost of doing business in the country,” Mr. Kapala said.

“I am glad to be here today and announce that Indeni and Tazama have received and are storing the whole quantity of commingled feedstock from the pipeline. You may wish to note that Indeni and Tazama tanks both have received about 94,000m3 of commingled feedstock approximately 77,000 metric tonnes and 20,000m3 of kerosene Indeni had by last Saturday completed the maintenance exercise that has been ongoing in preparation to process this commingled crude oil from the pipeline,” Mr. Kapala said.

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Meanwhile, Mufulira’s Kankoyo Member of Parliament Heartson Mabeta has hailed the resumption of operations at Tazama Pipeline.

Mr. Mabeta said the revival of Tazama will help to create jobs and business opportunities beyond the Copperbelt Province.

“Tazama Pipeline is back in Operations, transporting diesel at $49 per metric tonnes from $171 per metric tonnes using fuel tankers. Zambian owned fuel tankers are already on site in redness of starting to uplifting diesel to different parts of the country. Soon we shall have fuel tankers from Congo chasing diesel from Tazama. The official commissioning of the conversion of Tazama Pipeline from a transporter of crude oil into a finished products Pipeline has taken place on Monday the 20th of March 2023.This is 65 days ahead of schedule as this process was expected to happen first week of June 2023.The conversion of the Tazama pipeline from a crude oil carrier into a finished products pipeline will not only reduce the cost of transportation of fuel by 60% but also with the following benefits among others: Indeni will now be able to blend diesel with ethanol which is produced from local sugar cane, maize and cassava hence not only reducing the price of petrol and diesel but also creating a better price for industrial cassava for our peasant farmers,” Mr. Mabeta said.

“The uplifting of fuel from Ndola will create jobs for Zambian fuel tanker drivers who haven’t been able to load fuel from Tanzania due to the resistance they have been encountering whenever they tried to load fuel from Dar es Salaam. Opportunity to export fuel to Congo as it will be cheaper for fuel importers in Congo to load fuel in Ndola instead of Dar es Salaam. Export of blended fuel with ethanol produced from local cassava by Indeni into Congo which will improve the flow of dollars into our economy. Once our Debt restructuring program is completed next month and the kwacha starts to gain, we shall see a systematic reduction of diesel in Zambia month by month from May onwards. Allow me to thank President Hakainde Hichilema, the Minister of Energy and his team for their methodical approach in handling issues of national Importance which will soon be bearing fruits to the people of Zambia in General and Kankoyo in particular,” he stated.

Indeni Managing Director Evans Mauta said the firm is refining piped feedstock into kerosene, jet fuel, petrol and diesel among other petroleum products.

Besides, oil refinery Indeni will be involved in oil marketing as well.

6 COMMENTS

  1. Where are all the naysayers who were talking nonsense when the plant was decomissioned a few months ago.
    Off course the government had a plan and they knew what they were doing.

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  2. Really laughable …we shut down an oil refinery turn it in a pump station for imported refined fuel and we call it remodeled..KK and freedom fighters must be turning in their graves!!

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  3. There are many of us that think that it’s wrong and misleading to decommission an oil refinery and turn it into a distribution center. What could have been celebrated was the installation of the cracker that could’ve enabled Indeni process crude and not co-mingled oil. What comes into the picture is Ndola Energy. How much does it owe Indeni for the HFO. Who’re the players in Ndola Energy? If you can figure out that then you’ll understand that this decision isn’t in national interest. Many will go to prison in their advanced age

  4. In 2017, the World Bank stated that the Indeni Petroleum Refinery was “inefficient and technologically unsuited for current fuel needs”.

    In order to meet increasing petroleum products demand both nationally and regionally, there are two choices (a) build a new modern refinery that meets current and future national and regional needs or (b) expand and modernize the present refinery to improve its efficiency and output.
    The last hope is to find a deep-pocket investor who can buy a stake in the present refinery and modernize it. Who put money into this new pump?

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