*Botswana eyes 55-day cover by mid-2017
*Major fuel storage expansion underway
Botswana’s fuel storage capacity is expected to reach 55 days’ cover by the first quarter of the 2027/28 financial year, depending on the timely completion of the Francistown and Ghanzi depots.
Botswana Oil Limited (BOL) Senior Manager for Project Management Office, Kabelo Lanka, said the intention is to have improved fuel buffers by next year. “We hope and believe that by mid-next year, the country will be sitting comfortably at about 55 days cover, which will be a significant improvement from the current 15 days cover,” said Lanka.
Francistown currently has an active storage capacity of 38 million litres, with its expansion set to bring the total capacity to 98 million litres, making it the largest strategic petroleum storage facility in Botswana.
Work has also started at the Ghanzi depot, while the Tshele depot is still on the pipeline, set to be constructed under a Public-Private Partnership, with the Omani government. “While fuel consumption is expected to increase and reduce strategic fuel capacity, it is envisaged that the Tshele project, upon completion, will increase reserves to 60 days by 2035.Though all the four facilities will give the country a 60 day cover, it is still not enough since it is below the 90 days threshold,” lamented Lanka.
Depending on fluctuating demand, Botswana’s strategic fuel reserves currently provide 15 days of national consumption cover. With Gaborone providing 24 million litres, Ghanzi is expected to add 30 million litres with a future expansion of 25 million litres, and Tshele Hills 187 million litres, this is likely to bring a stable supply and cover for a country dependent on imports.
“Ghanzi will come in handy for Namibia imports, Francistown for Mozambique, and Tshele for South Africa. The routes were diversified strategically to compensate for supply shortfalls identified in the feasibility study. Most of the country’s fuel demand is in the southern part of the country and further we are looking at building coastal storage in Namibia though the project is still at an infancy stage,” said Lanka adding that the storage facilities are strategically located as the country imports fuel from South Africa, Mozambique and Namibia.
The Gaborone depot, built in 1979, is currently serving 60% of the market, dealing with 9 million litres of petrol and 12 million litres of diesel. In terms of distribution, the facility is capable of loading and receiving 30 trucks per day which is equivalent to 1.2 million litres of fuel.
BOL Chief Strategy and Sustainability Officer, Letshego Moeng, noted that changing market conditions require preparation. “Increase in fuel demand means the economy is growing therefore we should guard against any disruptions which lead to shortages and relying on a single route, and limited participation by Batswana.”
