Author: LYDIA SHEKIGHENDA
AfricaPress-Tanzania: THE Tanzania Petroleum Development Corporation (TPDC) was on Friday given a plot at Kigamboni in Dar es Salaam Region on which to construct 15 oil storage warehouses (oil tanks) as its oil subsidiary firm, TANOIL, starts to spread its wings across the country.
Speaking during the function to hand over the plot to TPDC, Dar es Salaam Regional Commissioner Paul Makonda said TPDC, through its company, will be the best oil selling firm as it had experience in oil trading and investments.
“Everything is now in order, you just go and visit the site so that the construction work can start as soon as possible, and I believe you have the money,” Mr Makonda told the TPDC management.
He called on TPDC to ensure that it builds good oil and gas infrastructure at Pembamnazi, where about 40 different factories are expected to be built.
TPDC Managing Director Dr James Mataragio said the company is fully committed to ensuring that it enters the oil business and to compete with existing companies.
He said apart from the storage facilities being used to supply commercial fuel they would also be used to reserve oil for the government, insisting that TANOIL operations would be service oriented.
According to him, their ambitions over the next five years would be to build more than 100 stations across the country for the supply of energy and eliminate challenges in oil and gas sector.
Earlier, the CCM Regional Chairperson, Ms Kate Kamba, thanked TPDC for the various steps it had taken, including gas supply in industrial and domestic areas.
In an exclusive interview held recently,TANOIL General Manager Eng Kapuulya Musomba told the ‘Daily News’ that TPDC was finalizing procedures before it embarks on official fuel importation and distribution by the end of this year.
He said the newly established company will help reduce government dependence on taxes as a source of revenue since it allows more companies to engage in businesses and gets income.
He said that through its participation in fuel business, TPDC will be in a better position to advice the government on various issues related to oil because it will have experience from the ground.
“The government has various regulatory bodies such as the Energy and Water Utilities Authority (EWURA) and Petroleum Bulk Procurement Agency (PBPA) but it lacked an oil company which could help to know the actual situation on the ground; the engagement of TPDC in fuel business is thus crucial,” he said.
Eng Musomba further said that the move was also crucial for national security because it is difficult for the State owned oil company to collaborate with private companies to form a syndicate for certain interests.
He, however, said that TPDC was engaging in the fuel business through the Petroleum Act 2015 which allows the company to operate commercially.
Eng Musomba noted that in order to conduct the business, TPDC constructed some retail petrol stations in various regions in the country.
Eng Musomba named some of the retail petrol stations as Musoma Segera which is scheduled to be inaugurated today while others built at Singida, Geita and Makuyuni will be opened at the end of this year.
Speaking in Musoma recently at the launch of the fuel business plan and inauguration of the first retail petrol station, Minister for Energy Dr Medard Kalemani said the development conforms with the government’s pledge to strengthen TPDC, in the provision of high quality fuel to be sold at a cheaper price, and bringing it closer to the people.
He said after officially embarking on the business, TPDC through TANOIL, shall work with local councils to establish petrol stations in every district, including setting up infrastructures and fuel storage depots.
TPDC will establish 100 petrol stations in the next five years, he said, noting that some district councils had started processing plot allocation for the purpose. Ultimately half of fuel imports will be managed by TPDC, he stated.
