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Engen launches Sub-Saharan African supply corridor

A traditional ceremony was held to evoke the spirits of the ancestors and natives of the region attended by high dignitaries of the Provincial Government, City Council, Gas industry, contractors, customers and Engen International Business Division.

11th September 2015

  

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Engen, a leading African energy multinational, has significantly increased its supply capacity to southern African countries with the launch of Beira Terminal in Mozambique. The new terminal is aimed at strategically boosting security of supply and strengthening the supply chain in the region.

An official launch was held on September 4th attended by the Governor of Sofala’s representative, Mr  Ricardo Nhacuongue (permanent secretary); the Mayor of Beira’s representative, Mr Jose Manuel Moises  (Institutional Councillor) and dignitaries from Sofala Province and the oil industry.

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

“We’ve tested railway capabilities from Beira to Bulawayo in Zimbabwe and to Francistown in Botswana, which was very successful.  In essence this means that we can take some pressure off of our Durban Refinery and supply Botswana and Zimbabwe directly from our new depot,” says Drikus Kotze, General Manager of Engen’s International Business Division.

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
Kotze, 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 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 were successfully executed.

History of investment
Engen started operations in Mozambique in 1996. Since then, the company 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.

Over the past 19 years, the company has built up a retail network and a diverse portfolio of commercial customers, including global mining giants Vale do Rio Doce and Rio Tinto (note in 2014 Rio Tinto sold its operations to International Coal Ventures Ltd (ICVL), an Indian company).

Engen has fuel storage arrangements with third parties in Maputo and Nacala, and as well as the  fuel terminal  in Beira. It also operates lubricants warehouses in Maputo, Beira and Tete.

In 2011, Engen acquired Chevron’s assets, infrastructure and business in Mozambique. A two -million-litre depot at  ICVL 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 Tete in the Centre. Expansion plans will cover growth areas, in northern Mozambique, particularly in Nacala and Pemba, and the main corridors.

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

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