Stop contradictory statements on Indeni, Govt urged

By OLIVER SAMBOKO
GOVERNMENT challenged to stop making contradictory statements on the future of INDENI Petroleum refinery as this is causing a lot of uncertainty in the fuel supply chain.
Green Party (GP) leader peter Sinkamba said in an interview that there is need for consistence in the manner government is handling the INDENI issue as it is of great importance to the country’s economy.
On Wednesday, Energy Minister Peter Kapala said INDENI petroleum refinery was not going to be closed but instead turned into another business model.
Mr Sinkamba said the Finance Minister has already indicated that he is not going to allocate money for procurement of crude oil for Indeni, and that’s what will happen.
Mr Sinkamba also said if Government wants to change Indeni business model from refinery to oil marketing, they have to pump out that crude oil to create room for transportation of finished petroleum products.
He said there is some communication hitches over INDENI which is to expected considering that the different Ministers are still new in the system.
Mr Sinkamba said that technically, it’s not possible that INDENI business model can be immediately changed to oil marketing agency because it will take time to clear the 90,000 cubic litters of crude oil feedstock still present in the Tazama oil pipeline.
He explained that even if Government started using Tazama pipe line to transport different finished petroleum products, there still be need for reprocessing of the same products to remove impurities caused by Sulfur contamination found in some products.
Mr Sinkamba also there will be need to rehabilitate the pipe line so as to avoid losses through leakages.
He said the Energy Minister is speaking as an engineer who understands that the plant cannot easily be shut because although the Government has not procured crude oil, the pipe line from the port Dar es Salaam to Ndola has still stock which can last over 10 days of the country’s fuel needs.
“From a technical aspect, in that pipeline, from Dar es Salaam to Indeni, has feedstock that was bought way back in 1973, when the Indeni plant was opened which must always be there and replaced every time a new stock is procured,” he said.