Zambia plans second fuel pipeline from Dar to Ndola

Green line shows the pipeline proposed route from Dar to Ndola

Zambia is constructing a second refinery and a new fuel pipeline from Dar es Salaam to Ndola at the cost of US$ 3.3 billion, geared to cut petroleum prices as much as 30 per cent.

This comes after the signing of an agreement between a Zambian firm, Sub-Saharan Gemstone Exchange Industrial Park (SGE) of Ndola and Maysen & Borowski Group of Australia to construct the refinery and pipeline.

SGE chairperson, Phesto Musonda said the refinery would be built at a cost of US$1.7 billion while the pipeline from Tanzania to Ndola would gobble up US $1.6 billion.

Zambia’s second refinery and the new pipeline running from Dar-es-Salaam to Ndola will see increased fuel production by an additional five million litres of fuel per day which it is projected would lead to a reduction of fuel prices in Zambia by 30 per cent.

The new refinery will be using natural crude in its production process.

SGE and Maysen & Borowski Group of Australia signed the agreement in Ndola yesterday in the presence of Commerce, Trade and Industry Minister, Robert Sichinga.

Mr Borowski said the project would create 13,000 jobs during construction and 5,000 jobs when the entire project, which will include a dry-port, warehouse and houses, was completed.

 “The project will increase fuel production by five times and we also want to open up the Congo DR market,” he said.

Mr Borowski said his company was also involved in tourism and would look at constructing mini hydro-power stations.

Zambia’s national consumption for diesel is pegged at more than one million litres while petrol stands at about 750 litres pay day.

Zambia is estimates to consume 1.5 million litres of fuel per day and that the new refinery would be producing five million litres per day.

The idea to invest in Zambia was mooted in October last year when Vice-President, Guy Scott and Mr Sichinga were in Australia for the Commonwealth Heads of State Summit.

Source: Times of Zambia, www.lusakatimes.com

Share on Google Plus

About Unknown

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.