African downstream petro- leum multinational Engen Petroleum is currently undertaking first-phase revamp work on Beira Terminal, an import and storage facility in the Port of Beira, Mozambique. When complete, the terminal will be able to supply Mozambique, Zimbabwe, Zambia, Botswana and the southern Democratic Republic of Congo.
The company is significantly increasing its supply capacity to Southern African countries, after it acquired seven in-country operations from competitor in the region and the Indian Ocean Islands, US-based energy corporation Chevron.
“The project involves the cleaning and safe dismantling of redundant piping and two unusable tanks, revamping of three tanks and administration offices and installation of new tanks, road tanker loading facilities, import and export piping, a firefighting system and security system,” says Engen International Business Division (IBD) GM Drikus Kotze.
Kotze says the depot forms part of the Mozambican component of the acquisition.
“It predated all others and was aimed at strategically boosting security of supply in the region, given Engen’s increasing market share in Southern and sub-Saharan Africa,” he explains.
IBD special projects manager Jan Sithole says the depot required a significant capital investment to overhaul and extend, as it had not been operational for a period of time.
The first phase of the project is aimed at readying the facility for import and supply of petrol and diesel in Mozambique, which is 20% of the volume requirement, and in Zimbabwe, which is 80% of the project requirement. This will be done through the existing pipeline to Masasa Depot in Harare.
The terminal’s designed capa- city of 18-million litres for diesel and seven-million litres for petrol is expected to be sufficient for this purpose.
Once Phase 1 projected product demand has been achieved, second-phase construction will involve increasing tank- and road-loading capacity, and the construction of a new rail-loading facility to cater for Engen’s other Southern African sister companies.
Sithole says the Beira Terminal Revamp Project scope comprises civil works, mechanical works, tankage and electrical works.
“Work for the first three scopings is progressing on schedule and the electrical works will start in due course,” he says.
Overall, the project is on track, with the target of reaching 90% mechanical completion, including installed piping, equipment and support structures by the end of December this year.
“We want to have the depot fully operational in the first quarter of 2014. Engen aims to be a leading sub-Saharan African oil company by 2016, and this undertaking will be instrumental in us achieving that,” notes Kotze.