Page 24 - issue 28 2020

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term not available.
• Coastal Storage -Mozambique
-30million litres, Namibia -30million
litres, South Africa – 30million litres.

The company is also looking into a
cleaner fuel source by investing in
Coal to Liquid projects.Objectives
underlined within such a project
include the improved security of fuel
locally as well as the beneficiation that
comes with utilizing local resources
.If this project is done successfully
it can become a national revenue
earner AND National gross domestic The Managing Director of Botswana Oil - Meshack Tshekedi image -patriot
product (GDP) multiplier. Jobs can
also be created with this venture and cleaner than fossil fuel. There is enough the commercial space such as for mines
development of the local technical window period for these investment to and other bulk consumers where they
expertise. pay back the investment while the local are required to demonstrate storage
market adjusts to electric cars.” access.
Needless to say there will obviously be
investment in requisite infrastructural In terms of citizen participation and Pricing of fuel made clear and
development and locals can benefit empowerment within the scope understandable –demystified
from this. The Coal to Liquid project of oil and petroleum there are five
has been completed the preliminary international companies in Botswana, There are three ways in which fuel
analysis stage and the next stage is namely VIVO, Puma, ENGEN, Chevron prices are determined globally. Firstly is
bankable feasibility study. & TOTAL. They are active in the supply, the Ad hoc pricing where prices are set
storage, marketing and distribution irregularly and there is no transparency
In terms of estimated money valuation through Retail and Commercial but its common in countries that have
of the projects, Francistown is set to channels. own oil production. Then secondly is
over Six million Pula, Tshele 1,3 billion the formula based / automatic pricing
Pula ,Ghanzi 300 to 400 million pula. Some citizen owned companies have adjustments where prices are published
expressed interest to participate in with or without their formulas .lastly
During the Question and answer the industry, a few are already active. is the market-determined retail fuel
segment Engineer Magazine asked Interest noted by BOL so far is on the prices/ liberalised when the market set
the moderator that since the future importation of petroleum products the prices guided by a formula.
of mobile industry is solar electric cars (Fuel, Lubricants and LPG, Marketing
where does that leave Botswana oil’s and distribution of petroleum products Elements or factors that influence
position in these current investments (local and export, Transportation of International crude oil prices include
and future plans? petroleum products, infrastructure International product supply/demand
development and maintenance services balances, product inventory levels,

The Managing Director Meshack as well as in consultancy. politics in countries, Rand/US Dollar
Tshekedi answered that, “yes electric exchange rate, international refining
car production is improving and we In terms of the Citizen Empowerment margins and weather patterns in the
don’t know how fast it will go. An framework, Botswana oil is reserving Northern Hemisphere. The weather is
ordinary Motswana today would all inbound logistics/transportation a determinant factor because crude oil
afford lower end vehicles than electric contracts for Citizen Oil Companies has a freezing point of between -40 and
cars .Dynamics like affordability in the to substitute the current dominant -60 degrees Fahrenheit. If temperatures
African markets will for some time multinational transporters. Botswana drop to these depths, the supply side of
cause consumers to continue using oil will also be availing storage rental oil and gas prices will be affected
fuel vehicles. Coal to liquid is a lot opportunities to enable citizen oil
companies to compete for tenders in >> To Page 24

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