Page 18 - DMEA Week 34

DMEA FUELS DMEA

UNOC to import more fuel via

Kisumu-Jinja barge route

UGANDA UGANDA National Oil Co. (UNOC) is seek- saying by The Monitor. “Each fuel truck carries
ing to fill petroleum product storage facilities in at least 35,000 litres, yet one [rail tanker wagon]
Uganda National Oil Jinja, a port on Lake Victoria, in order to facili- carries 1mn litres. In this way. the lake is [a far
Co. (UNOC) is seeking tate regional fuel trade. more] efficient mode of transport.”
to fill petroleum product According to Peter Muliisa, UNOC’s legal Muliisa went on to say that his company
storage facilities in and corporate affairs manager, the company will wanted to keep stock levels high so that the Jinja
Jinja, a port on Lake achieve this by importing at least 3mn litres per facility, which has a capacity of 120mn litres,
Victoria, in order to week of gasoline and diesel. These volumes will could serve as a gateway for other African coun-
facilitate regional fuel be shipped to Jinja in rail tankers by barge from tries that import most of their fuel via Kenya.
trade. Kisumu, a Kenyan port on Lake Victoria, he said. This plan gives traders in Burundi, Rwanda,
The Kisumu-Jinja delivery route is already South Sudan and the eastern regions of the Dem-
in use, he noted. Speaking on August 19, he ocratic Republic of Congo (DRC) the option of
reported that UNOC had brought 6mn litres of picking up petroleum products in Jinja rather
gasoline and diesel into the country by barge the than travelling to Kisumu or Mombasa, he said.
previous week. The fuel was transported by rail It will also relieve some of the strain on Kenyan
from Jinja to the company’s storage depot and infrastructure as fuel import volumes rise, he
added to inventories, he explained. added.
UNOC sees the rail-and-barge route as a “Our counterparts in Kenya have fantastic
better option than continued reliance on road facilities, but once we also get to that level, I think
tanker trucks that travel overland, he added. it is going to be a game-changer in a way. But
“Our intention is to ensure that the Jinja storage first, we are committed to ensuring that the vol-
terminals are fully operational, and one way is to umes by the lake increase and eventually become
use the lake for optimisation,” he was quoted as significant mode of transport,” he remarked. ™

World Bank blocks Liberian power

provider’s bid to lease fuel tanks

LIBERIA THE World Bank has reportedly blocked the Libe- Aminata. He did so because of the role the bank
rian government from proceeding with a plan to has played in financing the construction of the
World Bank says lease spare capacity in petroleum product storage Bushrod Island depot. (Under the terms of the
Monrovia cannot facilities built for Liberia Electricity Corp. (LEC). credit deal signed for that project in 2010, LEC
lease national power Earlier this year, officials in Monrovia began must seek the bank’s approval for any lease, sale,
provider’s fuel tanks to touting a proposal to sign a 20-year lease with transfer or other disposal of the facility.)
Aminata. Aminata Petroleum, a local fuel supplier, for Khwima Nthara, the World Bank’s country
LEC’s storage depot at Bushrod Island. The manager for Liberia, responded to Buckey’s let-
tanks located there have a combined capacity of ter by denying permission for the lease. He jus-
5.28mn gallons (24mn litres), enough to sustain tified this decision by arguing that loss of access
the operation of a 38-MW thermal power plant to the storage tanks had the potential to hinder
(TPP) for a period of 90 days. LEC usually uses LEC’s operations by preventing it from securing
them to store extra RFO for power generation. RFO at an optimal price.
Several months ago, though, Nathaniel Additionally, he raised questions about the
McGill, Minister of State for Presidential Affairs, fact that Monrovia had agreed to sign a deal with
outlined this plan in a letter to LEC chairman Aminata without first soliciting offers from other
Gesler Murray. McGill asserted that the plan companies. “As we work with the government
would allow Liberia to import more fuel and and LEC … we would be happy to consider the
avoid shortages, saying: “This will improve ser- outcome of a competitive process for leasing the
vice delivery and help to minimise the security storage tank facility based on careful considera-
issues in the country.” tion of the potential excess capacity as previously
The request appears to have found favour proposed,” he wrote.
at LEC, as the power provider’s CEO, Paschal As of press time, it was not clear whether
Buckey, subsequently asked the World Bank Liberia’s government was making any attempt
for permission to proceed with the deal with to pursue another lease agreement. ™

P18 www. NEWSBASE .com Week 34 27•August•2020