Progress on NAMCOR bulk fuel storage facility
> Jonas Eiseb
Windhoek – Petroleum parastatal, the National Petroleum Corporation of Namibia (Namcor) is making considerable progress with regards to its planned 75 million litre bulk fuel storage facility, according to the company’s Executive of the Commercial Business Unit, Ludwig Kapingana.
Namcor in 2014 flighted tender adverts in the local press for the construction of the facility.
“We have already identified a site and are currently finalising designs. We are also currently busy studying possible routes for the pipeline,” he said at a media briefing in Windhoek.
Kapingana explained that there would be three components to the facility and these included a tanker jetty and two berths as well as the pipeline that would carry the oil to the facility, to be located in Walvis Bay.
The storage bunker will enable the country to increase its current storage capacity from 14 to 30 days and it will be the largest fuel storage facility in the country.
The bulk storage facility will be the first-ever to be 100 percent owned by the government through Namcor. Existing storage facilities are owned by private oil companies.
The China Harbour Engineering (CHE) Ltd, which is also responsible for the N$3 billion expansion of the Port of Walvis Bay and a partner, are going to construct the bulk fuel storage facility.
Namcor’s downstream activities include the ownership and operation of three oil depots in Mariental and Keetmanshoop, located 269 and 495 kilometres south of the capital Windhoek respectively and another recently refurbished depot located in Otjiwarongo, 237 kilometres north of Windhoek.
Another issue of importance revealed recently was the restoration of Namcor’s fuel import mandate.
Namcor’s board chairman Johannes !Gawaxab spoke at length during the media briefing to present financial results recently that:
“We are committed to re-instate the import mandate and have assessed some options.
“The first was to create a trading company, the second a joint-venture. We are also keen to explore a bilateral agreement the Governments of Namibia and Angola signed. This is what we think as Namcor.”
Plans are also afoot for the purchase of a tanker fleet. “There is a lot of pro-active investment. NAMCOR has the potential to become one of the largest companies within the next five to ten years,” !Gawaxab said.
He said “without the 50 percent import mandate, we do about N$700 million in revenue, just imagine what we can do for the economy with 50 percent or 100 percent of the import mandate.”
Namcor was previously mandated to source and supply 50 percent of the country’s automotive fuel requirements to ensure security of supply.
In 2008, Glencore was contracted by Namcor to source and supply the 50 percent but the contract was cancelled in 2010 due to the significant risks Namcor was exposed to.
This left private companies with the obligation to import fuel. Currently, all of Namibia’s fuel is imported by Engen, Puma, Shell Vivo and Total.
!Gawagab said the state-owned enterprise is fully competent to handle the fuel import mandate. Additional reporting by New Era