UAE, Saudi Arabia Support Tanzania Plans To Build Giant Petroleum Hub For Supplying Gas In East Africa

By Tanzania Times On Oct 31, 2021

World’s top oil producers, Saudi Arabia and the United Arab Emirates will assist Tanzania in the country’s proposed plans to establish giant Petroleum Hub in Dar-es-salaam City.

That follows the recent visit made to the oil producing countries by Energy Minister, January Makamba who led Tanzania’s delegation to Algeria and the Middle-East.

The trip which also involved the Commissioner for Petroleum and Gas, in the Ministry of Energy, Michael Mjinja and the Executive Director for TPDC, James Mataragio was made in efforts to address the country’s fuel shortage problems coupled with frequently rising pump prices.

The Tanzanian delegation held talks with Ministers of Energies of Algeria, Saudi Arabia and Emirates, as well as heads of National Petroleum Companies in the countries who will also make official visits to Dar-es-salaam soon.

The Proposed Dar’s Crude Oil Hub and Refinery, according to Makamba, will guarantee Security of Supply for Tanzania and solve the long existed fluctuating gas prices in the country once and for all.

That is for the long-term solution, but at the moment, Tanzania solves the escalating fuel prices through cutting out the middleman, by purchasing petroleum products directly from refineries of oil-producing countries such as Algeria, Saudi Arabia and the Emirates.

The Tanzania Petroleum Development Company (TPDC), on the other hand steps in the bulk fuel procurement system, competing against private oil firms and so far ha won tender to import diesel direct from the source countries.

TPDC will thus sell Diesel at wholesale prices of US $20 per ton. A Private company previously sold the fuel at US $30 Per Ton. Global pricing clocks at US $86 per barrel.

Tanzania’s petroleum oil reserves could only last the country for 15 days in case of global shortage and now the Energy Ministry is reviving plans to establish a ‘National Petroleum Reserve’ to up storage to have enough fuel in store to sustain the needs for 90 days in case of emmergency.