Zanzibar Inaugurates First LPG Terminal at Mangapwani Port

On 27th June 2024, Zanzibar President Dr. Hussein Ali Mwinyi inaugurated the first liquefied petroleum gas (LPG) terminal at Mangapwani Port in the North Unguja Region, signaling a new era for Zanzibar’s oil and gas sector.

The facility, developed by Oryx Gas Zanzibar Limited in partnership with TP Company Limited, a subsidiary of the Vigor Turky Group, has a storage capacity of 1,300 tonnes of LPG.

Oryx Gas Zanzibar Limited will operate the new terminal, ensuring a sustainable LPG supply to the local population and addressing historical supply chain challenges. The terminal received its first shipment of 1,200 tonnes of LPG on May 2, 2024.

This development is part of Oryx Energies’ broader commitment to the energy transition agenda, which includes securing LPG provision to African markets, specifically Tanzania and Zanzibar.

The Tanzanian LPG market has seen an increase in imports of nearly 13-fold in the last decade, from 20,000 metric tons in 2010 to 293,000 metric tons in 2023.

At the inauguration ceremony, Dr. Mwinyi highlighted the government’s goal to create enough storage reserves to support firms using Zanzibar’s port facilities and stressed the importance of reducing gas costs to improve accessibility for the population.

He also emphasized the potential for Zanzibar to export oil and gas products to neighboring countries and encouraged further investment in supporting infrastructure, including additional oil and gas depots.

For his part, Benoît Araman, Managing Director of Oryx Energies Tanzania, praised Zanzibar authorities for fostering a conducive business environment and noted the terminal’s role in supporting the use of clean cooking energy, aiming for 80% of households to use clean energy by 2032.

Salim Turky, Chairman of Vigor Group, noted that the initiative would improve health and environmental standards by providing a reliable alternative to charcoal and wood. He also announced plans to reduce gas prices in Zanzibar by 20% starting July 1, with further reductions to follow.

Omar Ali Yusuf, Director General of the Zanzibar Utilities Regulatory Authority (ZURA), stated that the energy sector had long relied on Malindi Port, necessitating unsafe transportation methods. The new dedicated port facilities at Mangapwani represent a significant improvement, enhancing safety and efficiency in the sector.

In line with the government’s blue economy policies, Mangapwani Port aims to become a major hub for transporting gas and oil across East Africa, with energy prices in Zanzibar remaining competitive compared to other countries.