Dr. Dotto Biteko announces the modernization of the Tanzania-Zambia Crude Oil Pipeline, expanding its capacity and building new storage tanks to reduce port congestion. The initiative includes easing permit processes to attract investment and enhance the energy sector. Enhanced infrastructure aims to support economic growth in both countries.
The Deputy Prime Minister and Minister of Energy, Dr. Dotto Biteko, announced a significant plan to widen and modernize the Tanzania-Zambia Crude Oil Pipeline (TAZAMA) during a recent session of the Energy and Water Utilities Regulatory Authority (EWURA) in Tanga. This expansion aims to enhance capacity and efficiency in oil transportation between the two countries, addressing the growing demand for energy.
The modernization plan includes the construction of new oil storage tanks in the Morogoro and Makambako regions. This addition hopes to alleviate congestion at the Dar es Salaam Port by decreasing reliance on tanker trucks, thereby improving the logistics of oil distribution in the region.
Dr. Biteko pointed out the critical role of the TAZAMA pipeline, operational since the 1970s, stating, “Energy is a global necessity today. The pipeline has long supplied oil to Zambia, and as demand increases, we are expanding its capacity.” The pipeline stretches over 1,700 kilometers, and new intermediate storage facilities will streamline operations.
To manage increased traffic efficiently, trucks from Mbeya will be able to load oil in both Njombe and Morogoro, which will help mitigate congestion around the port. These enhancements are part of broader reforms to facilitate investment in Tanzania’s energy sector, especially regarding natural gas infrastructure.
Dr. Biteko praised EWURA for its efforts in simplifying permit and licensing processes, which have significantly attracted investments. By the end of the 2024/25 fiscal year, 50 new Compressed Natural Gas (CNG) stations have been established, doubling investment activity in a single year.
“I commend EWURA for eliminating bureaucratic delays… These changes have opened the door for more investments in the sector,” Dr. Biteko commented. In urban areas like Dar es Salaam, over 15 new CNG stations have been launched, with mobile trucks expanding distribution to regions like Morogoro and Dodoma following recent regulatory changes.
EWURA’s Director General, Dr. James Andilile, highlighted the authority’s commitment to facilitating investment in Tanzania’s energy sector. He noted that the implementation of directives aimed at expanding services to rural areas has been successful, with permit costs decreasing significantly to enhance access to fuel.
As of this year, rural fuel stations have increased to 512 from 418 last year. This growth indicates that more rural Tanzanians now have access to clean energy services. Established in 1968, the TAZAMA pipeline is crucial for transporting crude oil from Tanzania to Zambia and is now set for extensive renovations to meet increased energy demands.
The pipeline expansion plans include raising capacity to 5 million tonnes annually. Feasibility studies are underway to assess necessary renovations and costs, ultimately supporting energy security and economic growth in both nations. Furthermore, discussions initiated in 2022 aim to create a new refined petroleum products pipeline to enhance logistical efficiency in transporting refined fuels.
This proposed pipeline, spanning 1,349 kilometers, will run parallel to the existing TAZAMA pipeline, with an estimated investment of US$1.5 billion, underscoring its significance in regional energy infrastructure. Both Tanzania and Zambia are committed to modernizing their energy systems to ensure reliable petroleum supply and promote economic development in the region.
The modernization of the Tanzania-Zambia Crude Oil Pipeline marks a strategic advancement in energy infrastructure for both nations. Key plans include expanding storage capabilities, reducing operational congestion, and increasing investment in the energy sector. With an emphasis on supporting economic growth and energy security, these initiatives reflect a significant commitment from both countries to enhance their energy networks.
Original Source: www.ippmedia.com
