…as government reverts to Agro fuel Investment to maintain steady fuel supplies after Devon Oil Zambia, Puma Energy fail to access berth slots for their cargo ships to deliver fuel within their proposed timelines
By NATION REPORTER
GOVERNMENT is working at averting a fuel crisis in the country and has reverted to Agro Fuel Investment to supply petroleum products for October after a contract to Devon Oil Zambia Limited toSeptember could not be executed due of timeline limitations.
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On September 1, this year, the Ministry of Energy offered a contract to Devon Oil Zambia for the supply of 100, 000 metric tonnes of diesel within the stipulated period September through the converted TAZAMA Pipeline.
Devon Oil Zambia was to deliver on its contract within the month of September but due to challenges of clearance at the port of Dar-es-Salaam, the company had been unable to meet its contractual obligations, thereby compelling government lift the suspension it had placed on Agro Fuel Investment.
According to information and documentation obtained by the Daily Nation, Government had suspended the Agro Fuel contract to facilitate Devon Oil Zambia to use the TAZAMA Pipeline for the contractual month of September, 2023.
After realising that it could not offload its consignment for onward piping to Zambia because of the failure to secure berth slots, Devon Oil Zambia decided to sale its fuel to a Tanzanian company.
Sources revealed that in fact the Devon/Glencore Ship Haima carrying 100, 000 metric tonnes of Gasoil was sold to a Tanzanian supplier Augusta Energy who had a berthing slot for end of October for the Tanzanian market.
Efforts to get a comment from Minister of Energy Peter Kapala failed as his mobile phone went unanswered. Mr Kapala however requested for a text message and a query sent on his WhasApp was not responded to by press time.
However, although the government of Tanzania had given Zambia increased and speedy access to the Port of Dar-es-Salaam following the conversion of TAZAMA Pipeline to carry finished products, the government of Tanzania had indicated that the speedy clearance of the Devon Oil Zambia cargo ship was not possible as the country was also facing the fuel crisis for the month of September.
Realising that Devon Oil Zambia was not going to beat the time of delivery of petroleum products for the month of September, the Ministry of Energy has now reverted to Agro Fuel Investment to avert the possible fuel crisis in the country.
However, sources have also disclosed that on September 21, this year, Puma Energy made a proposal to the Ministry of Energy that it was capable of supplying Low Sulphur diesel to Zambia through the TAZAMA Pipeline at a competive and fair price within a period of 20 days if there were no challenges to be encountered at the port of Dar-es-Salaam.
The sources said the Ministry of Energy has since written to Puma Energy to confirm their ability to deliver 100, 000 metric tonnes of finished petroleum products within their suggested timeline.
As of yesterday, sources said Puma Energy had not reverted to the Ministry of Energy to confirm its ability to deliver gasoline on the dates convenient to government because the company has not managed to get the berth slot in Dar es Salam.
The sources said in a bid to avoid single sourcing of petroleum products, the Ministry of Energy had so far engaged three petroleum companies and two have so far been unable to get a berth slot at the port of Dar-es-Salaam.
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