Gulf Petrochem FZC (Gulf Petrochem), a UAE-based company engaged in oil trading and bunkering, oil refining and storage terminals, has recently announced that it would invest about USD 80 million in 2016 to expand its businesses in Tanzania and two other countries in Asia and East Africa.
The announcement was done by Gulf Petrochem Executive Director, Mr. Thangapandian Srinivasalu, whom in an interview with a UAE media explained that the company would spend from USD 25 million to USD 30 million in a long-term leasing to acquire new oil storage terminals in Tanzania and other East African country.
The expansion plan is a response to the increasing imports of oil products that Tanzania and the East African region has experienced in the last years, explained Mr. Srinivasalu.
Tanzania imports of petroleum products has grown in the decade from 2002 to 2012, from USD 185 million to USD 2,940 million which passed to represent from 9.88% to 25.77% of the country’s GDP according to the Massachusetts Institute of Technology (MIT).
According to Mr. Srinivasalu, Gulf Petrochem can expect a yearly growth between 5.0% to 7.0% in the next decade under the current scenario in the oil sector in Tanzania and East Africa.
Gulf Petrochem already operates in Tanzania and is involved in trading and refinery activities.
It would not be the first time an Arab company shows interest in expanding their businesses in oil storage industry in Tanzania.
In 2014, Emirates National Oil Company (ENOC) announced its plans to expand its current capacity which is at 1,252,184 cubic metres through 59 tanks, compared with the 860,666 cubic metres through 100 tanks that Gulf Petrochem manages.