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Expert urges oil imports reduction

Expert urges oil imports reduction
Written by Chiwoyu Sinyangwe
Friday, March 06, 2009 6:21:11 PM

ENERGY expert Andrew Kamanga has proposed that Zambia should reduce crude oil imports in view of reduced fuel consumption in the country.

And Indeni Petroleum Refinery managing director Michael Faulkner has confirmed that the country’s sole oil refinery resumed full capacity operations on Monday night.

The government recently suspended production at Indeni after Ndola Fuel Terminal ran out of storage capacity on account of accumulated reserves of finished products.

Analysts blamed the reduced consumption in the country to the slowdown in the mining sector which consumes about 60 per cent of total finished petroleum products.

Commenting on the development, Kamanga explained that it would make economic sense if the government revisited the 90, 000 metric tonnes which was currently imported between six to eight weeks rather than continuing with the quantity mismatched demand.

“Demand has certainly gone down and we have cut down on the 90, 000 metric tonnes. I am not sure what the figure for our consumption is at the moment but definitely it has gone down,” said Kamanga who is also managing director of ENFIN Consultants. “I am sure within the contract, there is a clause that allows for adjustment in terms of the frequency of the shipments or to reduce the shipment load to 45, 000 metric tonnes rather to continue to stockpile.”

And on the government’s intentions to export oil to the Democratic Republic of Congo (DRC) as a way of easing pressure on the storage facility at the Ndola Fuel Terminal, Kamanga said the exercise should be done to the benefit of the local consumers.

Kamanga however welcomed the move to export finished fuel in order to create space at the Tanzania Zambia Mafuta Pipeline (TAZAMA) controlled Ndola Fuel Terminal.

“But the question is…‘to whose benefit are the exports?’ I propose that the proceeds from the exports should be used to subsidise the local pump price,” said Kamanga.

And Faulkner confirmed that the refinery was currently operating normally and was supplying finished products to Ndola Fuel Terminal.

“We started operating normally on Monday night and we are refining properly,” he said.

Faulkner could however not disclose the amounts of stocks refined so far and referred queries to TAZAMA, the controller of the Ndola Fuel Terminal.

Labels: FUEL, INDENI, MICHAEL FAULKNER

posted by MrK @ 6:22 PM