https://www.engineeringnews.co.za

Engen builds new depot to cater for Mozambican growth, East-African supply

13th February 2015

  

Font size: - +

This article has been supplied as a media statement and is not written by Creamer Media. It may be available only for a limited time on this website.

Engen, a leading African energy multinational, has continued its robust investment programme on the continent with the construction of a third petroleum products terminal in Mozambique.

The 24 000m³ depot will supply petrol, diesel and lubricants to the main hubs in the country, as well as other countries in the Southern African hinterland where Engen has operations, including Zimbabwe.

Strategic
The depot’s strategic value is to ensure we meet our 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, Managing Director 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.”

Commitment
Drikus Kotze, General Manager in Engen’s International Business Division (IBD), says the investment reaffirms Engen’s strong commitment to the Mozambican market and the African continent.

“ Where others have disinvested in search of more profitable upstream opportunities elsewhere, Engen has invested extensively in these regions, supplying infrastructure, harnessing local skills and business partnerships, and giving back to the communities and natural environments in which we operate.”

The company has been on a recruitment drive to find local staff to run the depot and all positions have now been filled with local personnel. The depot is fully operational and the first pipeline injections will be undertaken in the first quarter of 2015.

Challenges
Engen’s strong commitment to the region comes despite many challenges to its operations, including being hamstrung by logistical and geographical challenges.

The building of the terminal itself also presented significant challenges, says Durrel Gibson, Special Projects Manager at Engen.

“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.”

History of investment
Engen Mozambique started operations in 1996. It has invested continuously in the country by creating jobs; establishing supply and service contracts from local suppliers, as far as possible; and contributing to the economic growth of the country, says Sarmento.

In the 18 years since then, the company has built up a retail network and a diverse portfolio of commercial customers, including global mining giants Rio Tinto and Vale do Rio Doce.

Engen has fuel storage arrangements with third parties in Maputo and Nacala, and its own fuel depot in Beira. It also operates lubricants warehouses in Maputo, Beira and Tete.

Since 2011, Engen has acquired Chevron’s assets, infrastructure and business in Mozambique. A 2 million-litre depot at Rio Tinto Benga coal mine was built in 2012, as well as a 500 000-litre bulk lubricants facility at Vale Moatize coal mine in 2013.

Currently, Engen’s operations cover the main hubs in the three geographic regions of Mozambique. The company also operates service stations from Maputo Province in the south to Cabo Delgado in the north. Expansion plans will cover growth areas, particularly Nacala and Pemba.

Future plans
Sarmento says further investments are planned in future to increase the depot capacity in line with market demand.

          

For more information please contact Gavin Smith, Engen Group Communication Manager,
Gavin.Smith@engenoil.com   Tel: +27 21 403 4312   Cell: +27 82 379 1700


 

Edited by Creamer Media Reporter

Comments

Showroom

Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.082 0.141s - 158pq - 2rq
Subscribe Now