Engineer Reynolds Bowa, Chairperson of the Energy Regulation Board (ERB), expressed gratitude for the opportunity to address the audience regarding the conclusion of the inspection and familiarization tour of Tazama Pipelines Limited’s operations.
This tour was conducted jointly with the Energy and Water Utilities Regulatory Authority (EWURA) of Tanzania, although EWURA’s involvement was postponed to the following year due to unforeseen circumstances.
Mr. Bowa highlighted the shared interests between Zambia and Tanzania in petroleum transmission and regulatory compliance. He emphasized the ongoing discussions between ERB and EWURA to finalize a Memorandum of Understanding (MOU) aimed at enhancing Tazama Pipeline regulation through cross-border cooperation.
ERB, as Zambia’s energy regulator, ensures Tazama Pipelines Limited operates efficiently, adhering to Low Sulphur Gasoil (LSGO) transportation objectives and technical standards. Tazama holds a license with specific conditions issued by ERB, and compliance with these conditions is mandatory.
He discussed collaborative efforts between ERB and the Ministry of Energy to develop a statutory instrument (SI) facilitating third-party access to the pipeline. This SI, submitted to the Ministry of Justice and approved in principle by the cabinet, aims to promote fair competition and a level playing field for all interested parties based on their market share.
Currently, Tazama Pipeline meets 80% of the national demand for Low Sulphur Gasoil (LSGO). Eng. Bowa noted that Oil Marketing Companies (OMCs) are responsible for importing the remaining 20% of LSGO to meet national demand, OMCs must adhere to their license conditions, ensuring their storage and retail facilities are adequately stocked at all times.
Furthermore, he expressed ERB’s satisfaction with the current compliance of the pipeline infrastructure with relevant standards and regulations. He reiterated ERB’s commitment to encouraging continuous improvement by Tazama. Eng. Bowa looked forward to Tazama’s pipeline expansion projects, which would enable the transportation of the entire LSGO supply, benefitting consumers.