Deputy Prime Minister and Minister for Energy, Dr. Dotto Biteko, has announced plans to expand and modernize the Tanzania-Zambia Crude Oil Pipeline (TAZAMA). The pipeline, originally built in the 1970s, has been supplying crude oil to Zambia for decades. Due to the increasing energy demands in both countries, the Tanzanian government is moving forward with an upgrade to improve efficiency and capacity.

Speaking at the Fourth Session of the Second Workers' Council of the Energy and Water Utilities Regulatory Authority (EWURA) in Tanga, Dr. Biteko emphasized the importance of the energy sector in economic development.

The expansion project includes the installation of additional storage tanks in Morogoro and Makambako, which will help reduce congestion at the Dar es Salaam Port by minimizing the reliance on tanker trucks.

"Energy is a global necessity today. The TAZAMA pipeline, built in the 1970s, has long supplied oil to Zambia. As demand grows in both Tanzania and Zambia, we are expanding the pipeline," Dr. Biteko explained.

"The pipeline, which spans over 1,700 kilometers, will also be equipped with intermediate storage tanks in Morogoro and Makambako. This will allow trucks from Mbeya to collect oil in Njombe and Morogoro, significantly easing traffic congestion at Dar es Salaam Port," he added.

Apart from pipeline expansion, Dr. Biteko acknowledged EWURA's efforts in simplifying the licensing and permitting processes, making it easier for investors to operate in Tanzania's gas and energy sectors.

The removal of bureaucratic delays and cost reductions has resulted in significant investment growth, with the number of Compressed Natural Gas (CNG) stations doubling in a year.

"I commend EWURA for eliminating bureaucratic delays in the permitting process and for reducing both construction costs and approval fees. These changes have opened the door for more investments in the sector," Dr. Biteko said.

As a result of these reforms, the number of investors in the energy sector has risen from 25 to 50, and over 15 new CNG stations have been established in Dar es Salaam. Additionally, mobile trucks are now distributing CNG to regions such as Morogoro and Dodoma.

EWURA's Director General, Dr. James Andilile, reiterated the authority's commitment to attracting investors and expanding energy access to rural areas. He highlighted the reductions in permit and licensing fees, which have made it easier for businesses to establish fuel stations in underserved regions.

"EWURA has effectively implemented your directives to expand energy services to rural areas. Permit costs have been slashed from 500,000/- to 50,000/-, and licensing fees from 1,000,000/- to 100,000/-," Dr. Andilile stated.

He added, "Through close collaboration with the Rural Energy Agency (REA), we have increased the number of fuel stations in rural areas. As of this year, we now have 512 stations, up from 418 last year, making clean energy more accessible to Tanzanians."

The expansion of the TAZAMA pipeline aims to boost its capacity to transport up to 5 million tonnes of crude oil annually. Both Tanzania and Zambia are conducting feasibility studies to assess the necessary upgrades and costs associated with the project. This initiative is expected to strengthen energy security and support economic growth in both countries.

In addition to crude oil transport, discussions began in 2022 regarding the construction of a new 1,349-kilometer refined petroleum products pipeline. This pipeline will run parallel to the existing TAZAMA pipeline, ensuring the efficient transport of refined fuel from Dar es Salaam to Ndola. The estimated investment for this project is approximately US$1.5 billion, highlighting its strategic significance for the region's energy infrastructure.

These initiatives demonstrate the commitment of Tanzania and Zambia to modernizing their energy infrastructure and ensuring a reliable supply of petroleum products for their growing economies.