Fuel Supplies

 Fuel Supplies


I note in the latest Zimday that the Business Day Newspaper in South Africa
carries a story about the fuel pipeline from Beira to Harare. This story has
many inaccuracies in it including the basic facts. At the peak of economic
activity in 1997 the country used about 5,5 million litres of liquid fuels a
day. This is thought to have slumped to less than half as a consequence of
the economic collapse that has followed over the past decade.

The pipeline was originally established by Lonrho working with the

Government of Mozambique and its ownership, even today, is shrouded in

mystery. What we do know is that the tariff charged for the use of the

pipeline has been very substantially above world market rates for similar

pipelines of a similar length and capacity.

Originally the pipeline was built to serve the oil refinery at Feruka but

after the imposition of sanctions in 1966 by the UN the pipeline was not

used until it became possible to feed refined products through its length

after Independence. Thereafter the Norwegian Government financed the

development of a new petroleum terminal at Beira as a part of the Beira

Corridor Project.

The pipeline was subsequently extended to Harare – by a consortium which

again included Lonrho and the Zimbabwe government. It was designed to

terminate at the newly established underground storage facilities at Msasa

in Harare. The latter are thought to be capable of storing up to half the

total demand for liquid fuels for a year. In fact they have not been used to

any extent because it was discovered that the storage of refined petroleum

products for any length of time is a difficult and expensive operation.

Subsequently the private sector (led by Mobil who have now left the country)

built a storage complex above ground some 3 kilometres from the underground

facilities and these tanks are now used as the terminus of the pipeline.

The capacity of the line is 3 million litres of fuel a day – not the 1,2

billion litres a day as recorded in the article. The balance of our

requirements was always imported via rail from South Africa where there is a

surplus of diesel due to the operations of SASOL.

Eddie Cross

30th October 2007

Post published in: Economy

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