In a bold restructuring move, Indeni Energy has transitioned from a petroleum refinery to an Oil Marketing Company (OMC), a shift that marks a turning point in Zambia’s energy sector. This transformation, initiated in 2022, is part of the government’s broader effort to liberalize the petroleum industry and enhance competitiveness, a strategy led by the Ministry of Energy.
The overhaul aims to modernize Zambia’s petroleum sub-sector by eliminating the high costs associated with crude oil refining. As an OMC, Indeni will now import and distribute refined petroleum products directly, increasing supply reliability while fostering a more competitive market. The shift is expected to strengthen energy security, reduce government expenditure, and generate employment opportunities.
A key component of Indeni’s transformation is the utilization of the TAZAMA Pipeline Open Access System, which enables the company to transport low-sulfur gas oil from Dar es Salaam to Zambia’s Copperbelt. By streamlining the fuel supply chain, this approach is anticipated to enhance efficiency and lower costs, potentially stabilizing fuel prices across the country.
Minister of Energy Makozo Chikote highlighted the broader economic benefits of Indeni’s transition. “The recapitalization of Indeni Energy will create competition in the fuel market, enhance supply security, and reduce transportation costs,” he said.
Notable Achievements
Job Creation: The expansion of fuel stations and the development of a bioethanol refinery are expected to generate employment, particularly in rural areas, while supporting climate action initiatives.
Competitive Fuel Market: Increased trading volumes could stabilize fuel prices, benefiting consumers nationwide.
Energy Security: Improved stock management and strategic reserves will help safeguard against supply disruptions and market shocks.
The transformation of Indeni Energy into an OMC represents a strategic shift with long-term economic benefits, reinforcing Zambia’s commitment to a modern, secure, and competitive energy sector.
Easier said than done, we will wait and see and congratulate if it works. Too many unfulfilled promises. And this one especially that it is coming from a minister who does not understand realities on the ground. Here is an example, during one press conference, he says I will now start giving you power for 3 hours please clap for me. And strangely the audience clapped – of course only in Africa can such a circus take place
Exactly !! what surprises me more is you weren’t moderated for saying Circus
I used a far more friendly word now under moderation :))
How can a big refinery go into buying and selling finished products?Then change the
Name to Indeni marketing.
These artickles without authors are just inviting conclusions of propaganda from readers. How about humanising your articles?
Oh I see instead of making bread they will be selling sandwhiches!
When you can on the scene, you chatted the Angola-Zambia Oil Pipeline (AZOP). You then talked about another line from Walvis Bay in Namibia to carry LNG. The third one is the Mozambique gas line. None of these has ever taken off. The only viable like thing is just to go back to the disowned TAZAMA. Did you not say the Kaunda pipeline is too archaic to hold the modern fuel? Time is ticking; talk is cheap and cheap is expensive.
Are the chickens finally coming home to roost ??