Feruka-Msasa pipeline upgrade on course
THE Feruka–Msasa pipeline upgrade, costing US$15 million, is now well on course, with the extra facilities at the loading end at Feruka Oil Refinery in Mutare 70 percent complete.
In addition, the work at the Msasa destination terminal in Harare is due to start in the second quarter of this year as the State-owned pipeline company invests to meet local demand and position Harare as a regional fuel hub.
The pipeline, which connects to the Beira-Feruka line through Mozambique, now also being upgraded by its own owners in a co-ordinated project, at present can handle 2,19 billion litres a year. The initial upgrade will take this to 3 billion litres, with a further upgrade to 5 billion litres a year planned for 2026.
National Oil Infrastructure Company of Zimbabwe (NOIC), through its subsidiary Petrozim Line, is funding the upgrade with its own resources.
NOIC is part of 22 parastatals that were put under the Mutapa Investment Fund, a sovereign wealth trust established to support national development objectives and ensure that State-owned businesses are profitable and create new wealth.
Petrozim Line managing director Mr Peter Masvikeni yesterday said the first phase of the upgrade, which will cost US$15 million, is “wholly self-funded” and will be attained by the second quarter of 2024.
“NOIC has developed adequate loading facilities to service both the local and regional markets in its quest to position Harare as the regional hub for the distribution of fuel to hinterland markets. “Under the capacity upgrade project, civil works at Feruka commenced in December last year with excavations currently at 70 percent. Both mechanical and electrical contractors are on site carrying out their works,” he said.