Page 13 - DMEA Week 17 2020

DMEA FUELS DMEA
Sonangol strikes deal on use of Pumangol fuel storage facility
ANGOLA
Angola’s national
oil company (NOC) Sonangol is working with Pumangol, its joint venture with
the Singapore-based commodities trader Trafigura, to establish a national petroleum product reserve.
ANGOLA’S national oil company (NOC) Sonangol is working with Pumangol, its joint venture with the Singapore-based commodities trader Trafigura, to establish a national petro- leum product reserve.
Sonangol said in a statement last week that it had struck an agreement with Pumangol on the project in mid-April. The document provides for the NOC to use Pumangol’s terminal facility in Luanda to store refined fuel. It states that Sonan- gol may use up to 100% of the terminal’s capacity, which stands at 200,000 cubic metres, as well as the joint venture’s logistical assets.
The parties have already begun implement- ing the agreement. On April 21, Sonangol’s Girassol vessel unloaded its first cargo at the terminal.
The NOC did not say exactly how much fuel the Girassol had delivered to the terminal. It did stress, though, that the agreement would help Sonangol and Pumangol expand their ties and work together to ensure adequate supplies of fuel to Angola’s domestic market.
The parties are using Pumangol’s Fishing Port terminal, which has been in operation since 2017. The terminal is connected to a conven- tional buoy mooring (CBM) system, the largest facility of its kind in the world, to berth tankers that are loading or off-loading petroleum prod- ucts in Luanda.
Both Pumangol and Sonangol are major players on Angola’s domestic motor fuel market. The NOC owns more than 40% of the country’s filling stations, while the joint venture has about 7% of the total. (Pumangol is also engaged in the distribution of heavier products such as asphalt and bitumen.)
Sonangol has said it wants to expand its stor- age capacity in order to improve Angola’s energy security. It has been working to build a new terminal at Barra do Dande in Bengo Province since 2013, but the facility is not yet finished. The terminal’s storage capacity was initially set at 641,500 cubic metres but will eventually reach 1.2mn cubic metres. The price tag for the project has been estimated at $1bn. ™
Botswana keen to ensure fuel and energy supplies during lockdown
BOTSWANA
Botswana’s government has pledged to ensure adequate supplies of fuel and energy to the population during the lockdown imposed to combat the coronavirus pandemic.
BOTSWANA’S government has pledged to ensure adequate supplies of fuel and energy to the population during the lockdown imposed to combat the coronavirus (COVID-19) pandemic.
Last week, Lefoko Moagi, the Minister of Mineral Resources, Green Technology and Energy Security, said at a press briefing that Gab- orone had taken steps to protect the country’s energy security. With respect to petroleum prod- ucts, he said, the government already has filled its own storage facilities with enough to cover 15 days of consumption. It has also worked with Botswana Oil, the national oil company (NOC), to establish additional storage capacity, he said.
Additionally, he said, it has identified back-up suppliers. Botswana has arranged to acquire refined fuels from Mozambique and other coun- tries in the event of an interruption in deliveries from the usual sources, he explained.
At the same time, Moagi told reporters, Gab- orone is keen to ensure a steady supply of elec- tricity to the population. To this end, he said, it has continued to promote the use of solar power. For example, he said, it has developed guidelines
that allow residential consumers who use solar cells to meet their own needs to sell excess pro- duction to Botswana Power Corp. (BPC), the national electricity provider.
Over time, he said, these measures should help Botswana reduce its dependence on con- ventional thermal power generation. They also offer economic benefits to the country’s resi- dents, he commented.
The minister went on to say that the govern- ment was monitoring petroleum product prices closely, in light of the bearish factors driving the world oil market. Indeed, he noted, Gaborone cut domestic fuel prices on April 21 to reflect the fall in crude prices. This move brought the price of diesel down by BWP0.1 ($0.0082) per litre, while gasoline fell by BWP0.13 ($0.011) per litre and paraffin by BWP 0.20 ($0.016) per litre, he said.
Going forward, Moagi said, Gaborone will adjust domestic fuel prices every three months. It will revise pricing guidelines in light of trends on world oil markets and regional petroleum product markets, he stated. ™
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