The Tanzanian government is currently looking at the possibilities of building an oil trading center in Tanga to supply fuel to East and Central Africa.This would be an added advantage as the country had been selected for the planned Uganda crude oil export pipeline this year.

According to the Minister for Industry, Trade and Investments, Charles Mwijage (photo), the government had begun working on the idea of an oil trading center in the region as it has great potential of becoming a major oil trading hub in East Africa, because of its strategic geographical positioning with deep sea port, sufficient area for the construction of big storage tanks and also railway connection.“Tanga should be an oil trading hub. The most ideal place in East African region is Tanga. We have big opportunity for oil trading,” he said.

Mwijage added that oil trading center would also assist in reducing consignment charges for oil transportation from the source.“We can create conducive environment for ship to ship (STS) transfer. The region has 25 metres draft deep. There is enough area for construction of tanks for white products of up to 100,000 tonnes ... Tanga has no congestion of tanks and it has railway network,” he explained.The planned facility would reduce the prices for oil products and therefore attract market in the East and Central African region, in DR Congo, Burundi and Rwanda and other neighboring countries.

The Tanzanian government in July, revealed intentions to finalize the construction of a crude oil pipeline from Uganda to Tanga in 2020 at a cost of $3.5 billion.Uganda chose the Tanga route to export its crude oil, instead of the Lamu route in Kenya after it was discovered that Tanzania was an economical and more secure option than Kenya.The government has said that a pipeline between Kabaale (in Hoima District) and Tanga will be the most commercial route when Uganda starts exporting oil by 2020.

Tanzania has discovered natural gas in its offshore. The government has revealed that three international oil companies operating in Uganda have agreed to take part in the construction of the pipeline.These companies are Tullow Oil, Total and CNOOC; and construction work is scheduled to start in June 2017, Tanzania Daily News reports.

Anita Fatunji