Petroleum Africa
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Friday, February 20, 2015
Engen has constructed its third petroleum products terminal in Mozambique. The 24,000 sq meter depot will supply petrol, diesel and lubricants to the main hubs in the country, as well as other countries in the southern African region where Engen has operations, including Zimbabwe.
According to Engen the depot’s strategic value is to ensure that the company meets its growth and future market share targets and to establish another supply corridor into southern Africa. This will ensure security of supply for Engen’s operations there, says Teodomiro Sarmento, MD of Engen Mozambique.
“Having sufficient capacity in the region will reduce our dependency on third parties, lessen our cost of supply through pipeline, and improve efficiencies.”
According to Durrel Gibson, special projects manager at Engen, the building of the terminal itself presented significant challenges. “Among others, heavy unseasonal rains resulted in increased expense, due to us having to have resources on stand-by. Challenges were also experienced to obtain approvals for transferences of imported equipment and resources, compounding the logistical issues we had with transport.”
Further investments are planned in the future to increase the depot capacity in line with market demand.
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