The Tanzanian Ministry of Energy and representatives of the Emirates National Oil Company Group mediated this agreement yesterday (ENOC).
The lengthy wait times for oil product unloading, particularly when traveling to other East African nations, are one of the primary difficulties that will be resolved by the completion of this project, according to the energy minister, Mr. January Makamba, who commented on the signing. He indicated that a shipment delay could last more than two weeks, which frequently results in a price increase for the item.
“The country must have enough gasoline on hand to last for 30 days straight according to the existing Petroleum Act, but we currently have enough storage to last for 15 days. The minister stated that a lot should be done to increase the nation’s storage capacity.
The minister also discussed how the continuing conflict between Russia and Ukraine is having an impact on the energy market, noting that now is a perfect opportunity to start such a project.
In a statement about the project, Mr. Saif Humaid Al, chief executive officer of the ENOC Group, pledged to collaborate closely with the Tanzanian government to address some of the issues affecting the nation’s energy industry.
“The current infrastructure will support us during the estimating and government negotiation processes. We have the expertise to carry out such initiatives in other nations including Malaysia, Dubai, Malaysia, Djibouti, and Morocco, he added.
Numerous oil agreements have been successfully concluded between African nations and global oil companies so far in the first month of the new year. Based on these new agreements, countries like Algeria, Libya, and Uganda have made significant advancements in their oil industries.