Q FM Africa's Modern Radio
Energy expert Johnstone Chikwanda has advised government to set up an independent technical task force to assess the viability of converting the 53-year old 1,710 km Tazama pipeline from transporting crude oil to transporting refined fuel.
Reacting to government’s decision to place INDENI Refinery on care and maintenance as well as change TAZAMA pipeline’s use, Mr. Chikwanda says the taskforce which should have a broad based representation from key stakeholders such as the Petroleum Transporters of Zambia (PTAZ), TAZARA, Consumers among others, should assess if the current transportation tariff of $55 per ton being charged by Tazama is cost reflective.
Mr. Chikwanda who is also the chairperson for the Energy Forum Zambia adds that the assessment by the taskforce should also include ascertaining whether the closure of the 40-year-old Indeni Petroleum Refinery will lead to reduced fuel pump prices and if so, to what extent.
He states that while the overall Government intention of trying to reduce the inefficiencies in the petroleum subsector through reforms is a welcome development, there is, however, need for the taskforce to assess the impact of the reforms on stakeholders especially the Petroleum Transporters who may lose combined business of up to 50%.
He further notes the need for the task force to review other studies which have been done in the past, update the findings and look at the Petroleum Management Bill which has not yet gone to Parliament.
Mr. Chikwanda says there are a lot of technical and commercial questions which need to be answered including assuring the security over the stretch of the pipeline.
Meanwhile Golden party of Zambia president Jackson Silavwe has opposed any plans to sell Indeni Petroleum Refinery, stating that no country and nor economy can develop by placing all its strategic assets in private hands.
Mr. Silavwe feels that Indeni can be revamped without selling it, by way of the republican president appointing a team of high level experts in energy and management that can recommend ways of revamping the refinery.