TANZANIAN AND ITALIAN PETROLEUM REFINING COMPANY LIMITED (TIPER) SET TO DOUBLE FUEL STORAGE CAPACITY

The two tanks of Tanzania and Italian Petroleum Refining Company Limited (TIPER) of 36,600 cubic meters each are being completely refurbished and will start operation soon. (By staff photographer)

The Tanzanian and Italian Petroleum Refining Company Limited (TIPER), now plans to invest 16 million US dollars (about 25.6bn/-) to double its storage capacity to 300,000 cubic metres. The firm's current operational capacity is 141,000 cubic metres. The facility is used for the storage of petroleum products namely gas oil (diesel), gasoline (petrol) as well as kerosene and heavy furnace oil (HFO).

TIPER Managing Director, Mr. Daniel Belair, was recently quoted as saying that the investment comes in addition to a massive rehabilitation which started several years ago at the cost of 14 million US dollars (about 22.4bn/-).

Mr. Belair says the decision to increase the firm's storage capacity is regarded to have come at the right time, when East Africa continues to grow. “Fuel is a key component of growth and as Tanzania and the neighbouring countries’ demand for fuel increase, TIPER is able to accommodate the growth.”

Oil prices fell sharply in the second half of 2014, bringing to an end a four-year period of stability around $105 per barrel. The decline, which is much larger than that of the non-oil commodity price indices compared to the early-2011 peaks, may signal an end to a price "super cycle".

The World Bank said in a recent report that prices are expected to remain low in 2015 and rise only marginally in 2016.

The TIPER facility offers hospitality to all Oil Marketing Companies operating in the country. It has direct offloading facilities from the Single Point Mooring (SPM) since November 2012, where all large gasoil vessels discharge.

Discharging product into a single location would improve discharge rates and reduce losses at the time of discharge. This aims to facilitate the control and taxation of products by the Tanzanian Revenue Authority.

TIPER also benefits from bonded warehouse status, allowing third parties to further expand regional fuel supply opportunities from its facilities.

TIPER’s tariffs are public and regularly reviewed by its Board of Directors, Mr. Belair said, adding: “At present, with 141,000 cubic metres, the firm has the largest storage capacity in Tanzania. This capacity will be increased to 300,000 cubic metres within the near future,” Mr. Belair said.

“The total capacity at our facility is spread out in 35 calibrated tanks varying from 2,000 to 14,500 cubic metres. These tanks will soon be electronically gauged and all movements will be accessible in real time from computer screens at TIPER, but also at the offices of the Government’s TRA located within TIPER itself,” he explained.

“Works already started in January 2014. At completion in the next two months or so, the total capacity will reach 214,200 cubic metres,” he said.

TIPER board of directors have also approved a budget of 15 million US dollars to lay down a new set of four pipes between Kigamboni and Kurasini to improve pumping rates towards Oil marketing depots mostly situated on the Kurasini side.

“This project also includes a new manifold, pumping station and meters. These new pipes will be an essential element to further improve efficiencies and cater for the growing demands. This project will be realized within the next 12 months,” he explained.

By our correspondent