Maravi

Kobil director urges caution on biofuels

Kobil director urges caution on biofuels
By Joan Chirwa
Thursday July 03, 2008 [04:00]

ZAMBIA needs to exercise extreme caution in the production of biofuels as prices of crude oil continue to skyrocket, Kobil Zambia Limited managing director Jerry Thomas has said. And Kobil Zambia Limited, a wholly owned subsidiary of Kenol Group, has sealed a long-term fuel supply deal with Albidon Mining Limited involving between 3 and 4.2 million litres of low sulphur diesel.

Responding to questions after a press briefing in Lusaka on Tuesday, Thomas said government and stakeholders needed to look at long term benefits of biofuels while securing the country’s food reserves.
“Biofuels are a good option but we need to be extremely careful about making decisions,” said Thomas.

The rising prices of crude oil, which reached a record high of US $143 per barrel on Monday, will ultimately see the emergence of biofuel production in most oil importing countries, Zambia inclusive.

The government has already revised the energy policy, which has taken into account the bio fuels sector while the Energy Regulation Board (ERB) a couple of months ago issued standards for biodiesel and production is awaiting government’s authorisation.
And Thomas said the fuel supply agreement between Kobil and Munali Nickel Mine was part of the company’s aggressive plan to penetrate the mining sector in Zambia.

“The mining sector in Zambia and the southern African region has been registering impressive growth due to favourable metal prices on the international market,” said Thomas.

And Kobil Zambia has acquired 15 per cent shareholding in Lublend Limited, a lubricants blending plant in Ndola.

Thomas said the acquisition of some shares in Lublend would lead to a slight reduction in prices of lubricants on the local market.
Kobil Zambia had been importing lubricants from its sister company in Kenya and Thomas said the trend was delaying product supply on the local market.

Labels: BIOFUELS, FUEL, KOBIL ZAMBIA LTD

posted by MrK @ 3:23 AM