Own Correspondent
In an exciting development, the inaugural phase of the Liquified Petroleum Gas (LPG) Depot in Ruwa is set to be commissioned later this month, the Harare Post can reveal.
The undertaking, spearheaded by Fossil Contracting Private (Pvt) (Ltd), of the installation of two state-of-the-art storage tanks, boasting a collective capacity of 650 Metric Tonnes (MT) is near completion. These cutting-edge tanks are equipped with a fully automated control system, to ensure seamless operations in Ruwa.
A contact closely connected to the project, disclosed that additional components to the facility which include a weighbridge and carousel specifically designed for loading of gas cylinders, have been completed.
"I am delighted to share that Fossil Contracting Pvt (Ltd) has successfully concluded the installation of two LPG storage tanks with a capacity of 650 MT. The work accomplished thus far represents the completion of the initial phase of this ambitious project. Ancillary facilities, such as the weighbridge and carousel for loading of gas cylinders have also been meticulously incorporated," affirmed the contact.
The contact further revealed that 200 MT of gas had been imported from South Africa. Notably, there are currently no plans to import additional gas at this juncture. The National Oil Infrastructure Company of Zimbabwe (NOIC) is ready to undertake comprehensive tests, commission the plant, and subsequently explore additional gas imports upon successful testing.
The entire project, with an estimated cost of USD$10.8 million, has been managed by Fossil Contracting Pvt (Ltd), which, in turn, subcontracted Indian based BNH Gas, an engine company, for specific tasks. Initiated in January 2018, the project experienced a temporary set-back in August of the same year, attributed to fluctuations in exchange rates.
Detailing the NOIC's envisioned business model, the contact outlined that registered gas companies could opt to bring their products to the depot for storage and subsequent distribution. Alternatively, NOIC could facilitate the importation of products on behalf of these registered companies. Plans are underway to establish distribution centers across the country to enhance customer accessibility.
Previously, the LPG industry which supplied both domestic and clinical gas was dominated by BOC gases, Zuva Petroleum and Kenseys gas which determined their own prices without regulation. NOIC aims to provide both wholesale and retail facilities with a commitment to ensuring competitive and affordable pricing for LPG products.
The imminent commissioning of the 650 MT plant is anticipated to contribute to a reduction in gas prices, currently set at USD$1.85 per kg by the Zimbabwe Energy Regulatory Authority (ZERA). This reduction is expected to have a cascading effect, benefitting households and industries alike, as citizens are incentivized to transition to gas usage, thereby alleviating the nation's electricity consumption challenges.
