Page 13 - DMEA Week 12 2022

DMEA FUELS DMEA

PAET calls for expanding

CNG use in Tanzania

AFRICA THE head of Pan African Energy Tanzania Ltd to drivers across Tanzania. Many new filling
(PAET), a subsidiary of Tanzania’s Orca Energy, stations will have to be built, he said, without
has suggested that Tanzanian authorities take offering specific details as to the number of new
steps to expand the use of CNG as an automo- facilities or the projected cost of the programme.
tive fuel. He also noted, though, that PAET had
Addressing reporters in Dar es Salaam on already launched a pilot project that could be
March 17, PAET’s managing director, Andrew expanded to serve as the basis of a country-wide
Hanna, called CNG a good alternative to gaso- network of CNG production and distribution
line and diesel. Tanzania would gain a certain infrastructure.
amount of insulation from fluctuations in world He indicated that the production component
crude oil prices if it made more use of natural of this network would use domestic gas output as
gas-based fuels, he said. feedstock for the manufacture of CNG.
The price of CNG for automotive use has The expanded version of this programme,
remained steady at TZS1,550 ($0.67) per kg for which has been running since 2004, could serve
the last 11 years, he added. as a long-term, economically viable and eco-
“We think there is still [a] huge untapped nomically friendly solution to Tanzania’s domes-
domestic market to focus [on], particularly the tic energy needs, Hanna commented.
gas-powered vehicles, which are cost-efficient Currently, the pilot programme consists of
with low emissions,” he was quoted as saying by a downstream supply network that serves 50
Tanzania Daily News. business and industrial consumers with CNG,
Hanna cautioned, though, that extensive including a cement works, a paper plant, a
investments would be needed to establish a net- tobacco plant, a steelworks, hotels and prison
work of retail CNG fuelling facilities accessible facilities, he said.™

Kenya working to keep

fuel prices under control

AFRICA KENYA’S National Treasury Secretary Ukur KSH115.60 ($115.60) per litre, up by KSH110.60
Yatani asserted on March 17 that the govern- ($0.97), he said.
ment was working actively to keep the domestic Many drivers in Kenya are complaining about
fuel market under control, despite widespread the new rates and urging the government to
complaints about rising prices. intervene, the secretary said.
Speaking to members of the Senate Com- He stressed, though, that prices would be
mittee on Budget and Finance, Yatani noted even higher if not for the fact that Nairobi subsi-
that under the most recent price list approved dises rates by means of the fuel levy fund.
by the Energy and Petroleum Regulatory Without the fund, he added, gasoline might
Authority (EPRA), gasoline rates had been set be selling for KSH155-160 ($1.36-1.40) per litre
at KSH134.72 ($1.18) per litre, up from KSH in Kenya right now as a result of the elevated oil
129.72 ($1.14). prices that have followed Russia’s invasion of
Diesel prices, meanwhile, are now at Ukraine.™

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