This is a last part in the series of article focusing on oil and gas value chain In Tanzania. So you have an idea of the upstream Upstream and Midstream part of oil and gas value chain in Tanzania. Now let’s talk about the last segment. That is a downstream
Table of Content
- What is a downstream
- Main activities in downstream
- The consumption of petroleum products (kerosene, diesel, jet fuel, lubricants and liquefied petroleum gas in Tanzania)
- High Potential Business Opportunities In The downstream sector In Tanzania
- Main Players In the downstream sector In Tanzania.
Let’s dive in
What is a downstream ?
Downstream refers to the process of refining crude oil and processing of natural gas into finished products. Downstream also involves marketing and selling products derived from crude oil and natural gas such as diesel, petrol, lubricants etc.
Downstream stage directly touches consumers because is the stage provides products we use in our daily lives.
The most common products derived at this stage are diesel, kerosene gasoline, petroleum products and liquefied petroleum gas (LPG) or cooking gas as everyone calls it.
Other products derived from crude oil and gas natural gas such as fertilizers, plastics, asphalt and synthetic rubber are unknown by the majority of the people.
Main activities in downstream segment of the oil and gas
The downstream stage involves four stages include:
1.Refining: To turn oil into usable materials such as diesel, lubricants, petrol etc. crude oil extracted from the producer regions sent to the refineries where is converted into the different substances that we can use. The purpose of the refined crude oil is to remove unwanted materials associated with crude oil and collect usable products only. So once the complex chemicals contained in crude oil is heated all unwanted materials are removed and we collect useful product only
Also natural gas is processed to remove impurities such as water, hydrogen sulfide and Nitrogen in the processing plants. The processed products delivered from natural gas include fertilizers.
3.Market and distribution
Marketing and distribution of the product made from crude oil and natural gas are in the downstream stage. This is where refined and processed products are delivered to the market. The oil and gas marketing companies distribute and sell the products Also downstream involve retail selling of the oil and natural gas such as diesel kerosene and cooking gas to the consumers
The downstream is highly regulated in Tanzania. Energy, water and Utility Regulatory Authority (EWURA) is a government agency responsible for regulating the downstream segment In Tanzania. Anybody considering to start a business in the downstream sector in Tanzania must license by the EWURA
Also other government agencies such as Tanzania Bureau of standard (TBS) which is national standard body. And it works in collaboration with EWURA to check the quality of the imported petroleum products
Total consumption of The Petroleum Products In Tanzania
Diesel, kerosene, Petrol and Jet-A1
Tanzania consumed 33 millions liters of petroleum products (Petrol, diesel, kerosene, and Jet-A1 ) in 2016.
Consumption of the petrol has increased by 13 percent and the use of kerosene has increased by 16 percent.
The main driver for the increase of the consumption of petrol is the increase of importation of motor vehicles in the country.
While an increase of cost of charcoal and the scarcity of firewood has made many Tanzanians to shift into the use of kerosene.
Lubricants Consumption in Tanzania
The consumption of lubricant oil in Tanzania has increased by 8 percent from 2015 to 2016.
As of 2016 the total of both imported and that manufacture in the local market reached to 36 million litters
Liquefied Petroleum Gas (LPG) Consumption In Tanzania
The liquefied petroleum gas (LPG cooking gas as everyone call it has increased by 29 percent in 2016.
In 2015, Tanzanians consumed 70,063 metric tones. In 2016 Tanzanians consumed 90,296 Metric tonnes
This is the increase of 29 percent to the volume imported in 2015
However, the consumption of heavy oil has been decreased in the country, due to the reducing the use of heavy oil in the production of the electricity. As the country mostly relying on natural gas to generate electricity, the consumption of heavy fuel in the country is decreasing at a rapid pace.
High Potential Business Opportunities In The Downstream Sector In Tanzania
1.Start a Lubricant Business
2.Set up a fuel station. Click the link to get the guide on how to start fuel station in Tanzania eBook] Discounts: The Complete Guide to Starting a Petrol Station Business in Tanzania
3.Sell Liquefied petroleum Gas (Cooking gas)
4.Engage In natural gas distribution in various cities in Dar es Salaam. Tanzania Petroleum development corporation(TPDC) as national oil and gas companies has been inviting both local and foreign investor in the distributing of the natural gas to the end users in Dar es Salaam
5.Construction of offloading terminals
6.Supplies of maintenance and repair operation equipment, such as pumps, flow meters etc.
7.Mechanical and fabrication services
8. HSSE services
9.Heavy industrial construction such as construction of the offloading terminals
The Main Players In The Downstream Sector
Here are 18 lists of the players in the downstream segment of the oil and gas sector In Tanzania
- PUMA Energy and
- Oryx Energies
- CAMEL OIL
- Lake oil
- OIL COM
- STAR OIL,
- MT. MERU
- PETROL FUELL
- AFRICA DELTA
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