Zimbabwe appointed IHS Markit, a world leader in critical information, analytic and expertise, to conduct a thorough assessment on how to increase the capacity of the fuel pipeline and also investigate the possibility of having a second oil pipeline into Zimbabwe.
In the findings of the preliminary report by the consultant, there is room to lower the cost of moving fuel through the pipeline from Beira to Harare in line with the international benchmarks.
The existing pipeline moves about six million litres of fuel per day, into Zimbabwe, at a cost of $0.08 per litre. Total installed capacity of the of the pipeline is eight million litres.
Principal Director in the Ministry of Energy and Power Development Engineer Stephen Diwa said that Government is looking to increase the utilisation of the pipeline to ensure that more players, especially those that are taking fuel beyond the borders , can then utilise the pipeline instead of using truckers to move the fuel.
In so doing they are also trying to ensure that the pricing is competitive enough to attract the other players, as they are obviously competing with rail, road and the Tanzanian Port.
Eng. Diwa confirmed that the consultant is about to finish his work, as meetings have been held in South Africa between the players, to look at the some of the preliminary findings and are now looking at the comments that have come onboard so that they can incorporate them.
He indicated that the consultant’s findings will highlight whether there is room for a second pipeline, although currently the two players are working on a project to increase pumping on the pipeline to ensure volumes.
Zimbabwe is currently looking to becoming the hub for the movement of fuel in the region. The second pipeline will run through the country making fuel movement cheaper. Making the pipeline cheaper and efficient are some of the ways expected to transform Zimbabwe.