Procurement News Notice |
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| PNN | 311 |
| Work Detail | The government has commissioned work to turn Tanga (left), the port along the north coast, into a leading oil trading hub for East Africa writes ELISHA MAYALLAH.. “We can create a conducive environment for the ship to ship (STS) transfer. The region has 25 metres draft deep.” Charles Mwijage, the industry, trade and investments mimnistr said last week. He said, “There is enough area for construction of tanks for white products of up to 100,000 tonnes ..Tanga has no congestion of the tanks and it has railway network.” He said Tanga region with its strategic geographical positioning with a deep sea port, the ample land area for the construction of big storage tanks and railway connection makes it an ideal trading hub. He was speaking during the inauguration of the second kiln at Tanga Cement Company at Pongwe. The Minister said construction of an oil trading hub in Tanga would help to cut on freight charges for oil transportation from the source market as large crude oil carriers could anchor and filter oil products into other tankers in the ship to ship (STS) transfer or to transfer storage tanks. The proposed facility would lower prices for oil products and hence attract market in the East and Central African region in Democratic Republic of Congo, Burundi and Rwanda as well as other neighbouring countries, he said. The minister said the construction of an oil trading hub would enable the establishment of government bonded stock or floating stocks as strategic reserves which may influence price movement in favour of the country. The government said last month that plans to complete the construction of a crude oil pipeline from Uganda to Tanga in 2020 at an estimated cost of $3.5 billion. Uganda has chosen Tanga to export its crude oil, rather than Lamu in Kenya after Its government said a pipeline between Kabaale in Hoima District and Tanga, of about 1,400km, will be the most cost-effective route when Uganda begins exporting oil by 2020. |
| Country | Tanzania , Eastern Africa |
| Industry | Oil & Gas |
| Entry Date | 02 Sep 2016 |
| Source | http://www.busiweek.com/index1.php?Ctp=2&pI=5571&pLv=3&srI=59&spI=47 |
