By Cathy Maulidi in Tanzania:
A vessel carrying approximately 50 million litres of fuel, procured under a Government-to- Government (G2G) arrangement, has arrived in Tanga, Tanzania, officials have confirmed.
They say discharge of the product is expected to commence today.
A team of officials from the National Oil Company of Malawi (Nocma) is expected to witness the initial discharge process this morning.
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The fuel was procured through a G2G agreement between the Malawi Government and Oman OQ Trading (OQT). National Oil Company,
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In Tanzania, Hass Petroleum, OQT’s appointed agent, is managing the logistics of the fuel.
Head of Trading for Hass Petroleum’s Southern Corridor, Abdul Kadir, said since OQT does not have a company in Tanzania to handle the logistics, they appointed Hass Petroleum to be performing the role.
“In July alone, we expect to deliver about 20,000 metric tonnes of petrol and 4,000 metric tonnes of diesel to Malawi. Our first delivery should be expected by next week.
“As we speak, the vessel has arrived and we are just waiting for some minor logistical clearances for the discharge to begin. We hope to deliver the first product by Monday next week,” Kadir said.
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Kadir also noted that the fuel is more affordable than the commodity Malawi was previously procuring in the absence of a G2G arrangement, though he did not elaborate on the specific details.
“Let me also take this opportunity to congratulate the Malawi Government for taking this step to initiate this arrangement,” Kadir said. “The people of Malawi will now be getting the product on time and, most importantly, at the best price.”
GBP, a Tanzanian-registered petroleum company that specialises in fuel shipment, storage and other logistics, is slated to manage storage of the fuel after it is discharged from the vessel.
Nocma officials also visited GBP to assess the company’s capacity to handle large volumes of product.
GBP Tanzania’s Tanga Terminal Technical Manager Ernest Lawuo said the company has capacity to handle the same.
“This company has the second biggest storage facility here. It has a 202 million-litre volume storage capacity. We have already started constructing two more new tanks, which will increase the combined capacity to 242 million litres,” he said.
In a move aimed at addressing the problem of fuel shortages and stabilise prices, Malawi went into direct G2G partnerships with key oil-producing nations in the Middle East.
In March this year, a high-level technical team dispatched to the United Arab Emirates by President Lazarus Chakwera recommended securing fuel supply contracts with State-owned oil giants in Kuwait, Saudi Arabia and Oman.
The President’s initiative, which was announced in a national address on November 27, 2024, aims to bypass intermediary agents and establish direct procurement channels with oil-producing countries.
This strategic shift, moving away from the Open Tender System, is intended to ensure reliable and cost-effective fuel supply for Malawi.
