https://en.sputniknews.africa/20231226/end-of-import-over-reliance-botswana-builds-60-mln-liter-storage-facility-to-ensure-fuel-security-1064321029.html
End of Import 'Over-Reliance': Botswana Builds 60-Mln-Liter Storage Facility to Ensure Fuel Security
End of Import 'Over-Reliance': Botswana Builds 60-Mln-Liter Storage Facility to Ensure Fuel Security
Sputnik Africa
Botswana relies almost solely on South African refined petroleum imports. Over-reliance on a single source and route puts national fuel supply security at... 26.12.2023, Sputnik Africa
2023-12-26T18:11+0100
2023-12-26T18:11+0100
2023-12-27T08:33+0100
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Botswana Oil Limited (BOL), the national oil company, began the construction of a 60 million liter storage facility at a total cost of 1 billion pula (about $74.5 million).The facility, situated near Ghanzi, a town in the middle of the Kalahari Desert near Namibia, along the Trans-Kalahari Highway, is designed to enhance the security of fuel supply in the western region of the country.The current local commercial buffer stock, which measures the capacity of private storage facilities, is less than five days, below the planned minimum of 14 days, he added.The vice president also expressed concern about the significant threat to the local economy from the heavy reliance on the South African route for petroleum delivery. He added that the current circumstances presented an opportune time for Botswana to disengage from this dependence.Additionally, he mentioned that BOL is making preparations to meet its exclusive legal obligation of importing 90% of the nation's fuel. Starting on April 1 of next year, the company will have the sole right to import almost all of the 1.2 billion liters of petroleum consumed in the country annually under the 90% "import quota". BOL will then sell this fuel to different wholesalers.Furthermore, the CEO of BOL, Meshack Tshekedi, said that the depot is expected to have a lifespan of approximately 50 years when completed.The first 30-million-liter tank is expected to be completed by December 2024, the vice president stated.In July, Botswana made a deal that could also diversify the country's economy: the Southern African country and diamond miners De Beers agreed to increase access to a greater amount of diamonds and help raise 10 billion pula (approx. $762 million) in development funds, Botswana's President Mokgweetsi Masisi said, adding that it would "diversify the economy and improve the diamond value chain," as well as help young people learn skills and create jobs.
https://en.sputniknews.africa/20231208/africas-largest-oil-refinery-receives-first-crude-shipment-reports-say-1064022402.html
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End of Import 'Over-Reliance': Botswana Builds 60-Mln-Liter Storage Facility to Ensure Fuel Security
18:11 26.12.2023 (Updated: 08:33 27.12.2023) Botswana relies almost solely on South African refined petroleum imports. Over-reliance on a single source and route puts national fuel supply security at risk, according to the country's vice president.
Botswana Oil Limited (BOL), the national oil company,
began the construction of a 60 million liter storage facility at a total cost of 1 billion pula (about $74.5 million).
The facility, situated near Ghanzi, a town in the middle of the Kalahari
Desert near Namibia, along the Trans-Kalahari Highway, is designed to enhance the security of fuel supply in the western region of the country.
During the ceremony, the Vice President of Botswana, Slumber Tsogwane, disclosed that Botswana's strategic storage capacity is currently 18 days, which falls short of the international criterion of 90 days for a country to be considered as fuel secure and thus "holding Botswana hostage."
The current local commercial buffer stock, which measures the capacity of private storage facilities, is less than five days, below the planned minimum of 14 days, he added.
The vice president also expressed concern about the significant threat to the local economy from the heavy reliance on the
South African route for petroleum delivery. He added that the current circumstances presented an opportune time for Botswana to disengage from this dependence.
"As noted in our National Energy Policy of 2021, Botswana is completely reliant on imports of refined petroleum products from neighboring countries, mostly from South Africa. This over-reliance on a single source and a single route poses a high risk to the security of fuel supply, as has been witnessed in the past when there was prolonged fuel supply shortage," he said.
Additionally, he mentioned that BOL is making preparations to meet its exclusive legal obligation of importing 90% of the nation's
fuel. Starting on April 1 of next year, the company will have the sole right to import almost all of the 1.2 billion liters of petroleum consumed in the country annually under the 90% "import quota". BOL will then sell this fuel to different wholesalers.
Furthermore, the CEO of BOL, Meshack Tshekedi, said that the depot is expected to have a lifespan of approximately 50 years when completed.
"The project is anticipated to be completed after 12 months with a minimum life expectancy of 50 years once the depot is operational," he said. "It is targeting the western part of the country, which consumes 10-30% of the total volume of fuel imported into our country."
The first 30-million-liter tank is expected to be completed by December 2024, the vice president stated.
In July, Botswana made a deal that could also diversify the country's economy: the Southern African country and diamond miners De Beers
agreed to increase access to a greater amount of diamonds and help raise 10 billion pula (approx. $762 million) in development funds, Botswana's President Mokgweetsi Masisi said, adding that it would "diversify the economy and improve the
diamond value chain," as well as help young people learn skills and create jobs.
