The agreement was reached yesterday between Tanzania’s Ministry of Energy and representatives of the Emirates National Oil Company Group (ENOC).
During the signing, the Minister of Energy, Mr. Januari Makamba, noted that one of the main problems that will be solved by the commissioning of this project is the long waiting time for the removal of oil products, especially during transit to other East African countries. They say that shipping delays can last more than 2 weeks, which often results in increased product prices.
“The current Petroleum Act requires the country to have enough gasoline for use for 15 days, but now the storage allows us to last for 30 days in a row. Much needs to be done to increase the country’s storage capacity,” the minister said.
The minister also mentioned how the war between Russia and Ukraine affects the energy market, and noted that now is a good time to start the project.
Commenting on the project, ENOC Group chief executive officer, Mr. Saif Humaid Al pledged to work with the Tanzanian government to mitigate some of the challenges facing the country’s energy sector.
“The current infrastructure will help us evaluate and process negotiations with the government. We have experience in carrying out these projects to other countries such as Morocco, Djibouti, Malaysia, and Dubai. said.
So far in the first month of the new year, several oil deals have been successfully negotiated between African countries and foreign oil companies. Countries such as Algeria, Libya, and Uganda have made great strides in the oil sector based on the new deal.