M a r k e t N e w s
Tanzania mulls setting up oil trading hub to serve East and Central Africa
Posted on : Thursday , 1st September 2016
The government of Tanzania is exploring the possibility of setting up an oil trading hub in Tanga, the north sea port city with a view to supplying fuel to East and Central Africa. “The most ideal place in East African region is Tanga. We have big opportunity for oil trading,” said the Minister for Industry, Trade and Investments, Mr Charles Mwijage.
The government, the minister said, had already started working on the idea of an oil trading hub in Tanga as the region had great potential of becoming a major oil trading hub in East Africa due to its strategic geographical positioning with deep sea port, ample area for construction of big storage tanks and railway connection.
Mr. Mwijage added that the construction of an oil trading hub would enable establishment of government bonded stock or floating stocks as strategic reserves which may influence price movement in favour of the country.
According to him, the 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 carriers could anchor and filter oil products into other tankers in ship to ship (STS) transfer or to transfer storage tanks.
“We can create conducive environment for ship to ship (STS) transfer. The region has 25 metres draft deep. There is enough area for construction of tanks for white products of up to 100,000 tonnes … Tanga has no congestion of tanks and it has railway network,” he said.
The proposed facility would lower prices for oil products and hence attract market in the East and Central African region in DR Congo, Burundi and Rwanda as well as other neighbouring countries, he said.
Source : africabusinesscommunities.com
