Tanzania Plans New Oil & Gas Import Facility With UAE Support

UAE state-owned energy group ENOC and the Ministry of Energy (MoE) of Tanzania signed on 27th January 2023 a Memorandum of Understanding (MoU) to develop a national import gateway and world-class storage facility for petroleum & gas products.

The terminal, which will include related import infrastructure, is intended to increase import capacity and speed up transit time, a will serve not only Tanzania but also the Eastern and Central Africa region.

Furthermore, ENOC explains that the development of a modern import terminal and storage facility will help to build strategic reserves, to improve efficiency, and lower import prices in addition to providing job opportunities.

The agreement was signed by Saif Humaid Al Falasi, CEO of ENOC and January Yusuf Makamba, Minister of Energy of Tanzania.

Through the MoU, the parties will enter into preliminary discussions to better understand the project’s requirements and develop the framework for the implementation of the gateway and storage facility.

During the signing ceremony, Minister Makamba said: “The current Petroleum Act requires Tanzania to have enough petrol for utilization for 15 days, but currently the storage enables us to sustain for 30 consecutive days. Much should be done to increase the country’s storage capacity.”

He also detailed that the future investment contract will be worth USD400-500 million and stressed the good timing of this project when the energy market is being disrupted by the war between Russia and Ukraine.

For his part, CEO Al Falasi commented: “As a national champion with a global presence, we are committed to supporting the UAE in its continued efforts to expand economic partnerships across the globe. Through this partnership, we will support the Republic of Tanzania to cater to the growing fuelling needs in the country and the wider Eastern and Central Africa region while addressing rising fuel costs.”

Tanzania Petroleum Handling Infrastructure

Tanzania is a net importer of petroleum products. According to the latest Monthly Economic Report of January 2023 published by the Bank of Tanzania, the country imported USD 3.3 billion worth of petroleum products in 2022.

The petroleum handling Infrastructures in the mainland include petroleum berthing facilities, petroleum storage terminals, transportation facilities, retail outlets, and consumer installations.

Berthing facilities used for handling vessels bringing imported petroleum products are located at Dar es Salaam, Tanga, and Mtwara ports.

According to the latest data issued by Tanzania’s Energy and Water Utilities Regulatory Authority (EWURA), as of June 2021 there are twenty-two (22) oil-receiving terminals in mainland Tanzania, located at Dar es Salaam, Tanga, and Mtwara ports with total storage capacity of 1,288,101 cubic meters.