The Ministry of Energy has officially terminated the contract previously awarded to Agro Fuels for the supply of diesel and cleaning of the TAZAMA pipeline. This decision is part of a broader government initiative to operationalize the TAZAMA Pipeline Open Access regime, aimed at fostering competition and efficiency in the transport of petroleum products.
Agro Fuels had secured the contract in May 2024, but the Ministry has now shifted its focus to allowing competing Oil Marketing Companies (OMCs) to utilize the TAZAMA pipeline. This strategic change will enable OMCs to transport diesel directly from the port of Dar es Salaam to Ndola, enhancing market accessibility and efficiency in the energy sector.
According to sources within the Ministry, the first diesel deliveries under the new open access framework are expected to begin by April 2025. This move is anticipated to not only boost competition but also reduce operational costs and improve supply chain reliability.
The TAZAMA Pipeline Open Access model aligns with the government’s broader objective of liberalizing the energy sector, creating a level playing field for industry stakeholders, and ensuring a stable supply of petroleum products for the Zambian market.
The cancellation of Agro Fuels’ contract underscores the government’s commitment to transitioning to a more transparent and inclusive procurement method for energy resources. It also highlights Zambia’s push towards modernizing its infrastructure to attract investment and meet the country’s growing energy demands.
The Ministry of Energy has assured stakeholders that the new system will promote efficiency while maintaining the integrity and operational standards of the pipeline. With this shift, Zambia is positioning itself as a regional leader in energy transportation and supply chain management.