THE ENERGY SECTOR: REDESIGNING FUEL SUPPLY

I was just thinking.

Oil is one of Zambia’s largest consumers of foreign currency. Our first President Dr. Kenneth Kaunda and his UNIP Government had the foresight to construct TAZAMA pipeline, INDENI oil refinery, the road to Tanzania which brought an end to the “Hell Run” and TAZARA. Kafue Hydroelectric Power Station and the Kariba North Bank power station including the Itezhi-Tezhi Dam. From Independence and well into the 1980’s, Zambia had more power generating capacity than needed. No projects of that magnitude were undertaken by subsequent leaders who took over power.

The reason Dr. Kaunda managed to achieve this is because he had the political will and the vision. Zambia had sound relations with the developed world. There was urgent need for both the Movement for Multi-Party Democracy and the Patriotic Front continue developing new sources of energy in view of their many promises to develop Zambian industries by building upon the previous successes made by UNIP. The problem faced by electricity consumers now are a direct result of no aggressive major investment in power generation for a country that expected new mining development and an increasing population.

The TAZAMA pipeline comes from Dar es Salaam passes through Kasama all the way to Ndola where crude oil is refined (or the cocktail is separated). It is then transported back to Kasama and to other parts at great cost making it expensive. Here is what we can do:

We must seriously establish a smaller refinery in Kasama. This refinery will feed the Northern, Muchinga and Luapula Provinces. There must be a plan to link the Eastern Province to its neighboring provinces in the North through a major road which will not only open up a whole new trade link amongst these provinces but also allow for the supply of oil from Kasama. The supply of oil to these areas from Kasama Oil Refinery will relieve pressure on INDENI and allow for major overhauls at INDENI without disrupting the national flow of oil, apart from creating new jobs for both skilled and unskilled labor in the area.

Another benefit from this project is that the price of fuel will come down due to reduction in transportation costs. We must also build more fuel storage tank farms in each province to ensure we have secure, strategic reserves that cover longer periods of time and also for defense and security emergences.

Zambia must not only study and stop the corrupt fuel purchasing process but also embark on an aggressive educational program leading to a reduction in usage of fuel in order to lower our national oil bill. We must encourage our motorists and industry experts to come up with creative means for conserving fuel. While living in California in the 1970’s, the government of the Republic of California came up with some very creative ways of reducing fuel consumption at the height of the Arab oil boycott.  California is richer than most countries in the world but found it necessary to conserve fuel. Investment in alternative energy sources is also critical.

Long term, we must open up the way to the Atlantic Ocean and build another oil pipeline and refinery in the North Western Province district of Zambezi. The Zambezi Oil Refinery will draw crude oil from Angola. This refinery will feed all of Northwestern, Western and perhaps even Southern Provinces.

Building a pipeline from Angola all the way to Lusaka would not make sense.  Lusaka is already crowded for such a major facility and bringing the pipeline to Lusaka is certain to cause some serious environmental problems and potential disaster on the route.  A road network or rail system could then supply refined oil to depots in Kapombo, Mufumbwe and Kasempa and also Mongu, Senanga and Sesheke. Just imagine the kind of development that could take place in these areas of the North Western and Western Provinces; providing jobs and further investment opportunities in those regions.  By the way, there seems to be silence on oil exploration. We need to get serious.

It's just a thought.