By Nation Reporter
INDENI will in the next five years spend about US$600 million on ultra-low sulphur diesel supply and power generation projects, says board chairperson Johnstone Chikwanda.
Mr Chikwanda said the five-year ultra-low sulphur project would save Government about US$90 million per year for crossing the comingled stock for pure oil.
He explained at a media cocktail organised by the Ministry of Energy in Lusaka that Government had been spending about US$10 million on each shipload for pure oil which Indeni was unable to produce.
He said Indeni looked for different parcels for pure oil such as refined diesel which came at a separate price.
“Each of these parcels are at each own price and they are packaged according to different ratios which determine the volume required; this means that it pushes the price up in that the price of comingled feedstock is much more expensive than the price of refinery pure crude.
“Our own estimations is that Government has been spending about US$10 million on each ship load and about US$90 million per year for crossing the comingled stock,” he said.
Mr Chikwanda said once the project was completed, the market would be supplied with ultra-low diesel
Mr Chikwanda said Indeni had also embarked on a power generation project to produce about 50 megawatts to support the refined fuel project which would demand excess power to function.
He explained that the refined fuel project would use about 10 to 15 megawatts of power and the rest would be evacuated to the national grid.
“We believe that with our means we should be able to do almost 50 megawatts of power and use about 10 to 15 and the rest will be evacuated into the grid. We expect to spend about not less than US$600 million over the next five years,” he said.