YALUMA
By JAMES KUNDA-
The Government is planning to construct an additional pipeline from Dar- es-Salaam in Tanzania to Ndola, to reduce costs incurred in the importation of crude oil for refining at Indeni oil refinery.
Mines, Energy and Water Development Minister Christopher Yaluma said, a feasibility study has so far indicated that, it would take 18 months to construct a pipeline to Ndola and that, the project would help to reduce fuel pump prices.
Mr Yaluma said the feasibility study to determine the viability of setting-up an additional fuel pipeline from the Port of Dar-es-salaam , is expected to be concluded next month.
The minister said so far, surveys indicate that it would take 18 months to construct a pipeline to Ndola and that, the project would greatly contribute to reduced fuel prices.
Mr Yaluma, who could not disclose how much has been set aside for the project, said it would be cheaper to set up a pipeline than constructing a new refinery and that, Oil Marketing Companies (OMCs) would be able to pick up refined fuel directly from the Ndola terminal for onward distribution to filling stations.
‘‘Plans to assemble an additional fuel pipeline from Dar-es-Salaam to Ndola to facilitate movement of refined petroleum from the Middle East are so far progressing well.
This will also help change the course of action from rehabilitating Indeni to doubling-up the pipelines from Dar-es-Salaam to the Ndola fuel terminal.
Government was pondering importing refined fuel instead of crude oil because Zambia’s sole petroleum refinery at Indeni in Ndola is operating below its installed capacity.
Indeni was built with an installed refinery capacity of 1.1 million litres of petroleum per annum.
“But now, Indeni is only able to refine between 300,000 litres and 700,000 litres of petroleum per annum and this is an indication that the refinery is limping.
“It has been costly for Government to sustain Indeni which experiences intermittent shutdowns due to dilapidated infrastructure and we are going to explore all avenues possible to reduce the cost of fuel,” Mr Yaluma said.
