New Terminal Expands Engen's Mozambique Presence (

ENGEN, a leading African energy multinational, has continued its robust investment programme on the continent with the construction of a third petroleum products terminal in Mozambique.
The 24 000m³ depot will supply petrol, diesel and lubricants to the main hubs in the country, as well as other countries in the Southern Africa such as Zimbabwe, where Engen has operations.
The depot’s strategic value is to ensure we meet our growth and future market share targets and to establish another supply corridor into Southern Africa.
This will ensure security of supply for Engen’s operations there, says Teodomiro Sarmento, Managing Director of Engen Mozambique.
“Having sufficient capacity in the region will reduce our dependency on third parties, lessen our cost of supply through pipeline, and improve efficiencies,” Sarmento said.
Drikus Kotze, General Manager in Engen’s International Business Division (IBD), says the investment reaffirms Engen’s strong commitment to the Mozambican market and the African continent.
“Where others have disinvested in search of more profitable upstream opportunities elsewhere, Engen has invested extensively in these regions, supplying infrastructure, harnessing local skills and business partnerships, and giving back to the communities and natural environments in which we operate,” Kotze said.
The building of the terminal itself also presented significant challenges, says Durrel Gibson, Special Projects Manager at Engen.
“Among others, heavy unseasonal rains resulted in increased expense, due to us having to have resources on stand-by. Challenges were also experienced to obtain approvals for transferences of imported equipment and resources, compounding the logistical issues we had with transport.”
Engen Mozambique started operations in 1996.
The company also operates service stations from Maputo Province in the south to Cabo Delgado in the north. Expansion plans will cover growth areas, particularly Nacala and Pemba.
Engen has fuel storage arrangements with third parties in Maputo and Nacala, and its own fuel depot in Beira. It also operates lubricants warehouses in Maputo, Beira and Tete.
Source: Business