Botswana Oil to build storage facilities in Namibia

Pauline Dikuelo | Friday December 2, 2016 16:04

BoL chief executive officer, Willie Mokgatlhe said they are still in the early stages of their discussions adding that together with NamCor they are engaging with the Namibian Port Authority (Namport) regarding the availability of land for a potential development of a storage facility.

He said this is part of their supply strategy, which includes initiatives that will see the development and securing of storage facilities inland and at coastal areas.

“The Walvis Bay storage facility will benefit the nation as it will mitigate any supply disruptions that may occur. For example, if we are unable to source products from South Africa, we would then have an option of obtaining products from the storage facilities located in other countries where we would have established these,” he said.

In a bid to reduce reliance on the South African route, BoL is also looking at leasing storage facilities in Mozambique, which would come in handy when there are supply disruptions in South Africa. They are also building a 160 million-litre reserves at Tshele Hills and intend to double their 30-million litres capacity at the Francistown storage depot while plans are also under way to set up a 20 million-litre deport in Gantsi.

In the medium-term BoL is looking at Coal To Liquids projects, which can diversify the energy mix to shed reliance on imports. In the long-term, the company will look at engaging in exploration activities.

According to Mokgatlhe this is part of their efforts to ensure that the country never runs dry of petroleum products, noting that the development of alternative supply routes, sources of petroleum products and storage facilities is critical as it is the means to maintaining secure and efficient supply of products to support growth of the economy.

“Our responsibilities include ensuring security and efficiency of supply of petroleum products to the country and managing government strategic stock and storage facilities. At individual level, the benefit will translate to one having petroleum products available whenever they are required,” he said.

Earlier this month, Namport chief executive officer Bisey Uirab confirmed the move noting that this will not only strengthen the two countries’ relations but also economically help Botswana.

Namport is considered to be a congestion free port with competitive turnaround times complemented by first class infrastructure and equipment, which ensures safe and reliable cargo handling. It currently handles five million tonnes, while its total capacity equips it to handle seven to eight million tonnes of cargo.