Limited fuel storage capacity holds Botswana hostage

 

The acutely limited fuels storage capacity is an economic risk to the country’s sustainable development, Vice President, Slumber Tsogwane observed in his keynote address during the Ghanzi fuel depot ground breaking ceremony recently.

Tsogwane, who doubles as Member of Parliament (MP) for Boteti West, said the ground breaking ceremony commences the construction of the Ghanzi Strategic Fuel Reserves Depot, a project delivered by Botswana Oil Limited (BOL) as part of improving the country’s capacity for energy security.

With this project, the VP said the government will have installed an additional 18 days of storage capacity.

“Today’s event paves the way for the beginning of the development of the first 30 million litres storage tanks planned for completion in December 2024. The government is investing about one billion Pula in this project.

“This is one of the major infrastructure development projects that Botswana Oil has been entrusted with as part of preparations to deliver on the recently approved 90 percent import mandate,” Tsogwane revealed.

He said the project will enhance the country’s fuel availability, affordability, and reliability.

“We bear witness to the commencement of a major national strategic project, and one of the many which were launched recently by His Excellency, Dr Mokgweetsi Eric Keabetswe Masisi,” the VP said, citing Jindal Energy Botswana’s construction of a 300 Megawatts clean-coal fired Power Plant in Mmamabula whose electricity generation capacity will expand to 600 Megawatts, in due course.

He added that this project is part of the unfolding fulfilment of two of the National Energy Policy objectives focused on creating additional fuel and lubricants storage capacity, while simultaneously diversifying the petroleum supply route, through the use of Namibian port of Walvis-Bay, where Botswana has secured a dry-port facility, as part of its vibrant bilateral relations with Namibia.

“In this regard, Botswana Oil plays an important role in ensuring security of fuel supply and managing Government strategic reserves to safeguard against fuel shortages in the country,” he explained.

Minister of Minerals and Energy, Lefoko Maxwell Moagi on the other hand told the audience that the government has been engaging with various stakeholders over the years regarding anchoring security of supply of petroleum products through importation by the National Oil Company. His Ministry, through the Botswana Energy Regulatory Authority (BERA) has been working on the revision of the BERA Act to accommodate majority of importation by the National Oil Company.

Chief Executive Officer (CEO) of Botswana Oil, Meshack Tshekedi noted that the infrastructure development of the structure entails the construction of a 60 million litre bulk petroleum storage depot, administration offices, staff houses, road loading and offloading gantries, a tank farm and other associated infrastructure with an investment worth P1billion.

The facility is anticipated to be completed after 12 months with the minimum life expectancy of 50 years once the depot is operational, Tshekedi revealed, adding that the facility is strategically located along the Trans Kalahari Highway on the Mamumo Border route 45km from Ghanzi and 30km from Chobokwane.

“It is targeting the western part of the country which contributes 10 to 30 percent of the total volume of fuel imported into our country,' he said. It was procured through an open tender in line with the Public Procurement Regulatory Authority (PPRA) requirements.

The day coincided with Botswana Oil Limited’s celebration of its 10th year anniversary as the national oil company of Botswana mandated to ensure the security of fuel and lubricants supply in the event of global supply chain disruptions and unfavourable or adverse price fluctuations in the market.