. . . as use of gas rises

THE National Oil Company (NOIC) has embarked on the construction of a 2 000 tonne liquefied petroleum gas (LPG) handling depot in Ruwa at an estimated cost of $29,6 million.

The development comes at a time when the use of gas, particularly by households, is rising in the country, thereby demonstrating its acceptance by consumers.

LPG use has come to the fore riding on the development of new settlements across the country. Some of the areas are not yet electrified. Other power users are opting for the energy source to cut grid electricity costs.

Outgoing Permanent Secretary in the Ministry of Energy and Power Development, Mr Partson Mbiriri, told The Sunday Mail Business after a recent NOIC 4th annual general meeting that the LPG depot will be constructed in phases.

The first phase, which seeks to establish 500 tonnes of storage, is earmarked for completion by end of next year and will gobble $7,8 million.

Said Mr Mbiriri: “We have embarked on the construction of a 2 000 tonne Liquefied Petroleum Gas handling facility in Ruwa.

“The first phase to establish 500 tonnes of storage is expected to be completed by 31 December 2019. The cost of the first phase stands at $7,8 million.”

The overall cost for the depot has been tentatively set at $29,6 million but the cost can either go up or down depending on the cost of materials.

Further, the overall cost of the depot could also be influenced by technological developments.

Mr Mbiriri confirmed that currently, the total cost would be difficult to determine.

“It is certain at this point in time that the cost is an estimate. The bulk of the equipment is imported. The pipes will be imported depending on the cost and the extent at which exchange rates will be applicable.

“So one can do a simple computation based on $7,8 million for 500 tonnes. It is compounded by the fact that as technology improves, costs invariably come down,” he said.

NOIC, which is mandated to ensure the security of fuel supply in the country through the provision of bulk fuel transportation, storage, re-delivery service and also trades in petroleum products and ethanol; has been investing heavily in infrastructure development.

Last year, the company continued with the implementation of other projects such as the construction of two ethanol storage tanks at the Mabvuku Depot.

The tank has a capacity of six million litres and the project is scheduled to be completed by December 31 this year.

The cost of the project stands at $6 million.

NOIC is also developing storage and handling facilities for Jet A1 fuel at the Robert Gabriel Mugabe International Airport at a cost of $9,3 million.

All the projects are being financed from