Equinor, Shell, and Exxon Agree on LNG Project With Tanzania

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Oslo, May 19 (Reuters) – Equinor, Shell and Exxon Mobil have agreed a deal with the government of Tanzania for the development of a liquefied natural gas (LNG) export terminal in the East African country, the two sides said on Friday.

The agreement is a milestone for the long-delayed project to unlock Tanzania’s vast but remote offshore gas resources, which the companies involved have said is expected to cost tens of billions of dollars.

Friday’s deal includes the main elements of a host government agreement to provide a regulatory framework and a production sharing agreement, and is subject to legal reviews and quality assurance before an expected signing in the coming weeks, Norway’s Equinor said.

“It paves the way for the series of milestones that need to follow to realise this fantastic LNG opportunity for the country and the world,” Equinor’s Tanzania country manager Unni Fjaer said in a statement.

The deal also involves land use and security, Tanzania’s chief negotiator Charles Sangweni said.

“We are happy it is a big step towards the implementation of the project although we have a lot to do. If everything goes well as planned, I am confident that the final investment decision will be reached in 2025,” Sangweni told Reuters.

The next steps involve a period of detailed engineering design work, Shell’s Tanzania Chair Jared Kuehl said in a separate statement posted on Linkedin.

Equinor and Shell are joint operators of the development while Exxon, Pavilion Energy, Medco Energi and Tanzania’s national oil company TPDC are partners.

Tanzania said in 2014 that the project could cost $30 billion to develop, but analysts have said cost inflation in recent years could add billions more to the investment.

Shell operates Tanzania’s Block 1 and Block 4, which hold 16 trillion cubic feet in estimated recoverable gas.

Norwegian oil and gas producer Equinor operates Block 2, in which ExxonMobil holds a stake and which is estimated to hold more than 20 trillion cubic feet of gas.
(Reporting by Terje Solsvik, Editing by Louise Heavens)

Expert Reveals Trends, Demands, and Elements For Retail Petrol Station Success in Tanzania and East Africa.

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By serving as an advisor and a hub of information and resources, our movement hopes to bring us together to elevate the energy industry in Tanzania and Africa. In this interview, Simon Martin, VP international Sales of Kalibrate, a data analytic platform for the fuel retail sector.  He talks about the growth trends, demands, and elements for petrol station success in Tanzania and East Africa.

HUSSEIN BOFFU brings the excerpts.

1. How do you see the future of retail fuel stations in Tanzania and East Africa? 

In general market dynamics appear to represent growth opportunities for both investors and entrepreneurs. Demand for conventional fuels (such as diesel, petrol, lubricants, and LPG) will remain for decades, and non-fuel retail will become increasingly relevant in terms of convenience retail, food service, car wash service, and other ancillary offers.

 2. From your perspective, what are the key elements for retail fuel station success? 

 Location of sites is fundamental – selecting optimal sites relative to demand pockets, and enhancing consumer offer at existing locations (facility/merchandising/operations) across the fuel and non-fuel offers are going to be essential for fuel retailers to maintain and grow their business in the market as it evolves.

3. What is your advice for investors and entrepreneurs seeking to start a new petrol station or acquire an existing fuel station?

  Any entrepreneur looking to establish themselves in the petrol station business needs to first ensure they are going to be investing with a high probability of success – whether that be an existing site being acquired or a new industry location, the investor should make an assessment of the consumer demand, competitive environment and the composition of the location they are investing in. 

Utilizing a single site analysis service such as that provided by Kalibrate will provide a detailed overview of market and consumer dynamics, as well as a volume forecast that will either support the investor and give confidence or indicate that a location will not perform at the required level to generate a return in an acceptable time frame. 

All this can be achieved before commitment to property, acquisitions, or any significant capital outlay.

4. What is the importance of data analytics in the fuel retail sector?

 As markets evolve, they become more competitive and more complex. Consumer behavior continues to evolve and has accelerated in the post-COVID era.

 As such, many of the prior knowns concerning site selection and optimization are now not necessarily still correct. The use of appropriately combined data and predictive analytics such as those offered by Kalibrate can validate which assumptions are correct, and unlock new opportunities and ideas for fuel retailers to further develop their business.

5. What are key trends in the retail fuel station industry? 

 Continued enhancement of the basics (quality/quantity of road fuels offered) – well-planned locations situated proximate to demand. Also, non-fuel offers development like food services, restaurants, mini supermarkets, coffee shops, car washes, garages, and other complimentary services. The last trend is international and oil marketing companies driving up standards to keep pace with consumer needs.

Three Five Africa’s Landlocked Countries With Growing Demand For LPG

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We can talk a lot about the growing demand for LPG in Tanzania.

Tanzania’s annual LP gas consumption grew from 5,500 metric tonnes in 2005 to 248,800 metric tonnes in 2021. And based on demand projections, LPG consumption will be about 450,000MT in 2028.

It’s projected that by 2028 other landlocked such as Rwanda,Malawi, Burundi, Eastern DRC and Zambia will have good share of LPG sourcing from Tanzania.

Rwanda: In recent years and as predicted for the future, the demand for liquefied petroleum gas(LPG) in Rwanda has been higher than ever.

The consumption of LPG in Rwanda has increased from 24, 873,425kg in 2020 to 32 932 504kg in 2021.
This demand is rising because LPG has become a hot commodity in Rwanda.

The primary customers of LPG in Rwanda are households and commercial customers like hotels, restaurants, schools, camps, and refugees.
Also, manufacturing industries are transiting from diesel to starting LPG to heat their boiler. This indicates that the LPG market in Rwanda is massive.

Malawi: With over 16 million people and increased awareness, Malawi presents vast opportunities for entrepreneurs who want to capitalize on opportunities in the energy sector in the country.

You should exploit opportunities in Malawi because the demand for LPG has doubled in the last five years, and the industry also offers a good margin for distributors.

Furthermore, Malawi consumes approximately 1, 560MT per year. This indicates there huge opportunities who want to increase the adoption of LPG in Malawi while growing their revenues.
The LPG market is dominated by five major players. Like many parts of Africa, LPG is used mainly for cooking and heating. And is customarily packaged and transported in cylinders of varying sizes in 6kg, 9kg, 14kg, 19kg, and 45kg.

Zambia LPG market is growing at rapid race. The national consumption of LPG in Zambia has increased from 3,680 MT in 2014 to 7,981MT.

I hope this help.

 

Business Plan For Lubricants Oils Distribution In South Africa.

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Executive Summary

  • Overview

Remax Petroleum (Pty) Ltd, (Reg No: K2018421293) hereinafter referred as Remax Petroleum is a Level 3 BBEEE company based in Hillcrest in KwaZulu Natal province . The company was registered in 2018 by a determined and progressive entrepreneur Richard Hermes who owns and entirely controls the business. The company was registered after the director realised the market gap and ever growing demand for lubricants in the market. Following an advert by Sasol (https://capitalnewspapers.co.za/147484/distributor-opportunity-for-sasol-techno-oil/) calling for aspiring SME’s to participate in the lubricant distribution. Siwenya Petroleum has applied to be a distributor in KwaZulu Natal province.

The mini research we conducted shows that there is a shortage of lubricant oils production plants in South Africa. Local market production of lubricants is very few in the country. This led to the importation of substandard lubricants, mainly in Arab countries, and Kenya. In turn, it results in the proliferation of the dealers who supply the substandard oils in the maker and causing damage to cars and machinery that drive significant losses to consumers. Siwenya Petroleum is looking to fill that gap by being a branded Sasol distributor of high-quality products. The distribution plant will have a production capacity of 350,000 litres of lubricants per year.

  • Business proposal

Hence Remax Petroleum seeks to be an exclusive Sasol lubricant distributor to retailers, motorists, automobile and commercial customers in the mining, construction, agriculture, power sectors, and the marine industry. The company has negotiated a warehouse lease agreement and the site is accessible to transportation and good infrastructure. We are aware that there are several lubricant oil manufacturing companies all around the KwaZulu Natal, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete in the market. We will have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large they may grow to ,We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

  1. Management capability

The company will leverage from management vast experience in distribution and retail amassed from their previous employment. The director was a Distributor Business Manager (DBM) for KZN (BP), and also acted as a Channel Manager. He assisted in Marketing, focusing on Industrial and Commercial Vehicle Oils (CVO) including Agri and was nominated as the best performer within the BP lubricants sales team in South Africa in 2008. He dealt with various Original Equipment Manufacturer (OEM) Franchised Workshops in both light and heavy-duty businesses.  Also worked with major wholesalers and retailers in High Street (Retail), Biking and Boating. He also worked in the Distribution/Warehouse as a truck driver, in Production as an Empty Packs Store Supervisor ensuring good storekeeping and stock control, at the same time assisting in FLT driving as well delivering finished product from operations to the warehouse.

 

  • Business Opportunity

South Africa offers one of the largest and fastest-growing markets for lubricant business. This could be credited to various reasons like the growth of penetration of used cars in the country, more frequent changes of lubricants from older vehicles, and a good level of economic development and regulatory encouragement. In the automotive sector, penetration of used vehicles and subsequent lubricant changes in older vehicles increase the demand for lubricant in the country.

Get the Full Version Now

In the full version, you will have access to the following table of contents:

  1. EXECUTIVE SUMMARY. 7

1.1       Overview.. 7

1.2       Deal Structure. 9

1.3       Sales model 10

1.4       Financial Requirements 10

  1. COMPANY BACKGROUND INFORMATION.. 11

2.1       Director Information. 11

2.2       Business Information. 11

2.3       Our Vision. 12

2.4       Our Mission. 12

2.5       Key to Success 12

2.6       Objectives 12

2.7       Products 13

  1. SWOT ANALYSIS. 14
  2. OPERATION AND MANAGEMENT PLAN.. 16

4.1       Management Structure. 17

4.2       Job Roles and Responsibilities 17

4.3       Personel plan. 20

  1. INDUSTRY ANALYIS. 21

5.1       South Africa Lubricants Market Size. 21

5.2       South Africa Lubricants Market Analysis 22

5.3       South Africa Lubricants Industry Segmentation. 22

5.4       South Africa Lubricants Market Trends 23

Largest Segment by End User: Automotive. 23

5.5       South Africa Lubricants Industry Overview.. 23

5.6       South Africa Lubricants Market News 23

  1. THE MARKET 24

6.1       Lubricant volume growth. 24

6.2       Our Target Market 25

6.3       Our competitive advantage. 26

6.4       Sales Strategies 27

6.4.1        Sales Forecast 27

6.4.2        Promotional Mix Budget 28

6.5       Marketing Strategy. 29

6.6       Publicity and Advertising Strategy. 29

6.7       Our Pricing Strategy. 30

6.8       Payment Options 30

  1. TECHNICAL REVIEW.. 31

7.1       Insurance. 31

7.2       Legal and Regulatory. 31

7.3       Key Management Controls 31

7.4       Monthly Management Accounts 31

7.5       Monthly Break Even Analysis 32

7.6       Stock Management and Analysis 32

7.7       Daily Cash Balances 32

7.8       Fixed Assets 32

7.9       Reporting. 32

7.10     Management Information Systems 33

  1. IMPLEMENTATION PLAN.. 34
  2. FINANCIAL ASSUMPTIONS. 36

9.1       Prices 36

9.2       Income statement 37

9.3       Annual profit and loss 40

9.4       Capital Proposal Breakdown. 40

9.5       Potential Financiers 41

  1. CHECK LIST / MILESTONE. 42
  2. ANNEXURE FOR FINANCIAL PROJECTIONS. 43

 

Do You Value Local Content Partnerships? Key Opportunities that Emerged For Foreign Oil and Gas Companies in Tanzania.

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Do you value local content partnerships? This is the critical question for international investors looking for opportunities in Tanzania’s energy sector. That should be your selling point because your target clients and regulators care about that.

If your answer to the above question is YES, then are visible investment opportunities in the energy sector in Tanzania.

  1. Investing in Increasing LPG penetration and LPG facilities.

Before 2005, Tanzania was slow to develop in terms of LPG growth. The LPG was used relatively exclusively by wealthy families and restaurant owners. 

But with a favorable fiscal environment, even pre-urban households are adopting LPG. Tanzania’s annual LP gas consumption grew from 5,500 metric tonnes in 2005 to 248,800 metric tonnes in 2021. Based on demand projections, LPG consumption will be about 450,000MT in 2028. This is rapid growth. With this accelerated LPG growth, more than existing LPG facilities will be required for the expected LPG distribution demand in Tanzania in the coming years. Opportunities range from setting up LPG refilling and cylinder manufacturing plants and investing in bulk LPG trucks/tankers.

2. Investing in Compressed natural gas(CNG) infrastructure. With abundant natural gas in Tanzania and increasing petrol and diesel prices, CNG infrastructures present a good opportunity for an investor

3. Petrol Station Facilities.

There has been an increase in petrol and diesel use in Tannzania.  The rising demand for petrol and diesel is in line with increasing urbanization and industrialization in our country. As our economy urbanizes, car ownership rises, and much fuel is required to power vehicles. With the right location, a new investor can get a fast return through increasing consumption of petrol and diesel in Tanzania.

I hope this helps.

The Four Good LPG Business Opportunities to Start in Tanzania or Africa

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Before 2005, Tanzania was slow to develop in terms of LPG growth. The LPG was used relatively exclusively by wealthy families and restaurant owners. But with a favorable fiscal environment, even pre-urban households is adopting LPG. Tanzania’s annual LP gas consumption grew from 5,500 metric tonnes in 2005 to 248,800 metric tonnes in 2021. Based on demand projections, LPG consumption will be about 450,000MT in 2028. This is rapid growth.

With this accelerated LPG growth, more than the existing LPG facilities will be required for the expected LPG distribution demand in Tanzania in the coming years.

More investment must be encouraged from both local and foreign investors and entrepreneurs to be able with this essential product.

If you are considering starting an LPG business, this article outlines the required LPG investment opportunities in Tanzania or Africa.

1.LPG Refilling Plant.
In terms of LPG filling plants, only a few large LPG marketing have small filling plants outside of Dar es Salaam. These big LPG companies neglect these regions, believing it will give them small profits. But with rapid LPG growth demand, there are opportunities for investors to set up small LPG filling plants in underserved regions of Tanzania. A typical LPG cylinder filling plant with a storage capacity of about 25MT may cost between $350,000 to $500,000.

2.LPG Bulk Trucks/Tankers Investment
In Tanzania the primary method for transporting LPG is through the truck. But there are limited LPG transportation trucks especially for bulk products. Our research reveals that in the year 2022 in Tanzania, there were at most 50 LPG bulk trucks. With the projected growth of LPG consumption in Tanzania and other landlocked countries. More LPG bulk trucks are required to cope with increasing LPG and distribution. Depending on the model and manufacture, the LPG bulk trucks will cost between USD$ 120,000 to USD 200,000.

 

3.LPG Storage Plant
This is a lucrative investment opportunity in Tanzania’s LPG value chain. This kind of investment has multiple sources of income. As a significant LP Gas marketer, you receive LPG from the ships, store, and sell LP Gas commercial customers to super dealers(partners) and small LPG refilling plants. You can also sell to heavy consumers in landlocked countries such as Rwanda, Eastern DRC, Zambia, Malawi, Burundi, and Uganda. This is a capital-intensive project and requires a lot of technical expertise. But with proper planning and access to sufficient capital, investors can get fast returns from the project through this investment.

4.LPG storage manufacturing plant.
LPG cylinders are essential to ensure that LPG reaches end consumers. There are only two LPG cylinder manufacturing plants in Tanzania. If you can set up a new plant that will produce high-quality cylinders with the safety of international standards, you will have a limited marketplace for your business.

Evidently, there are good opportunities to invest in LPG opportunities from storage facilities to small filling plants and transportation trucks or tankers.

The Four Key Developments in Tanzanian Energy Sector

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I have been following Tanzania Energy for quite sometimes years.

The energy sector in Tanzania has been undergoing a massive change in structure and worth. Here are four changes that have been happening recently in the energy sector,

 

The most obvious change has been an increase in petrol and diesel use. There is a fast-growing network of multinational petroleum marketing companies, and petrol stations are growing nationwide.

These development in petrol and diesel use are in line with increasing urbanization and industrialization in our country. As our economy urbanizes, car ownership rises, and much fuel is required to power vehicles.

Next to that, improved stoves and modern renewable energy technologies are rapidly gaining in urban and, to a lesser extent, in rural Tanzania.

Another change is the increasing value of local content partnerships. Multinational oil and gas exploration companies and their prime contractors care about being culturally and environmentally sensitive. They give local service providers priority in the awards of contracts and tenders.

They also actively recruit, train and promote experienced indigenous workers into managerial positions. Not to mention they take community engagement seriously. Now if you are a local service provider, you can use that as a selling point. Because that is what matters to big oil and gas buyers.

The last change in Tanzania’s energy sector is rapid growth in LPG consumption. Tanzania was slow to develop in terms of LPG growth. The LPG was used relatively exclusively by wealthy families and restaurant owners. But with a favorable fiscal environment, even rural household is adopting LPG. With proper planning and sufficient working capital, investors can get fast returns through this rapid growth of LPG consumption.

Are Oil and Gas Industry Dead in Tanzania and East Africa?

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I recently talked with a specialist oil and gas industry consultant. I wanted to learn his view on the future of the emerging oil and gas sector in Tanzania and East Africa.

His response was simple: The oil and gas are dead in Tanzania and East Africa, specifically the upstream sub-sector of the industry.

He believes that renewable energy will displace the oil and gas sector in East Africa. He considers most significant oil and gas development projects will never come as expected. Because the world is transitioning into renewable energy.

I strongly believe renewable energy will not displace oil and gas.

If you go back, whenever a new medium was introduced, everyone said the old medium was dead.

Forexample, when discovered coal, everybody said charcoal and firewood were dead. And once we shifted to using oil and gas, everybody now is predicting the end of oil and gas.

Solar and wind are untapped in Tanzania and East Africa. And should be exploited to the fullest. But renewable energy will never displace oil and gas. Look at what is happening in Tanzania and East Africa.

The region is becoming more urbanized and industrialized. And that requires a lot of energy. As our economies industrialized, people demanded more cars, Televisions, factories, and electricity for home and comfort.

Forexample, The large population of East Africa demand reliable electricity and fuel for their vehicles. So wind and solar alone cannot meet the growing energy demand in Tanzania and East Africa.

Renewable energy will contribute to the energy mix rather than cutting the development and utilization of fossil fuels(oil, gas, and coal)

Oil and gas are probably not dead. And they’re probably far from dead.

Business Plan For Solar Opportunities(Solar Panels) in Tanzania or Africa

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Executive Summary

With the increasing penetration of smartphones and the high need for entertainment, such as Television, in rural areas, the demand for reliable and affordable power is growing nationwide. While using generators and kerosene lead to high utility bills, solar energy is reliable and affordable and reduces expenditures on light. 

GIFT OF LIGHT LIMITED is a newly established company that aims to fill such a gap by providing the fastest way to overcome the energy shortage through electrification based on solar energy by offering products that would be cost-effective in the long run.

GIFT OF LIGHT LIMITED, dully registered by the united republic of Tanzania, to market and provide a complete solar panel system comprising battery and charges. With a vision to provide the best quality services while keeping our solar panels affordable, we will get a fair share of Tanzania’s growing solar energy market in the long run. 

Our business model is catering to importing solar chips of different capacities in Tanzania and reselling them to our target market in Tanzania.

Our Purpose

At GIFT OF LIGHT LIMITED, our bigger purpose guides us. We exist to bring you this clean, affordable, and abundant energy home. We believe that with your help, solar energy can get actual human progress in Tanzania and Africa. This is why we love what we do,

Our Mission  

To market and provide a complete solar panel system at competitive prices while responding to our clients’ requirements

Vision

We are committed to giving our clients the highest level of services with excellent customer experience.

Project Objectives.

  • To provide personalized service at competitive prices
  • To increase customer awareness regarding the solar energy alternative through effective promotion
  • Increasing average sales month year to break even in the first year
  • Responding to our clients’ requirements 

Products and Services 

GIFT OF LIGHT LIMITED provides various products and services, including solar panels, batteries, chargers, light emission diodes, pendant lights, and laptop bag solar. And the sale of solar panels to households.

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In the full version, you will have access to solar energy industry analysis, market analysis, marketing strategies, SWOT analysis, competitor analysis.

For the complete business plan for solar opportunities (solar panels)business in Tanzania or Africa, please make a payment of $200 (or its equivalent in Tanzanian Shillings TZS 400,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is made, send an SMS to +255768183677 or +255655376543 with the following details:

 How to Lease/Rent Existing Petrol Station In Tanzania and Africa

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Many entrepreneurs want to own and run petrol stations but want to avoid the hard work, uncertainty, and risk associated with building new petrol stations from scratch. 

Many entrepreneurs would like to expand via leasing or renting existing petrol stations(It is usually easy to buy customers than it is to win them over)

But knowing how to find a petrol station for a lease, how to locate and work with brokers with specific questions to ask the existing petrol station owners, and how to evaluate and perform due diligence is vital to ensure the long-term success of your business.

Here are critical strategies to learn when leasing petrol stations in Tanzania and Afric

1. Asses location. The key determinant to whether the future success or failure of the petrol station business is location.

The most common misconception we observe is that because your petrol site is on a busy road or populated area is appropriate for operating a profitable petrol station. The simple reality is that motorists and consumers can pay more to avoid turning into a petrol station, which makes entering or exiting difficult.

So before renting or buying a petrol station, you need to assess how easy it is for motorists and consumers to enter and leave the sites. How is the site accessible from the main road?

You must ensure that your site allows access via roadways and frontage. The location must have easy in and out access. Also, your site must be located at an optimum distance, enabling motorists driving at average speed to have enough time to make buying decisions, slow down their vehicle, and enter your station safely.

If there is a problem with access and visibility, determine what you can do to improve access to the site. In addition,

it is crucial to understand who your closest competitor is in your trading areas and identify their strength and weakness and what volume they are achieving.

If other petrol stations exist in the same trade area, Identify their strength, weakness, and what volume they are achieving. You may also need to identify the competitive advantage your new site could gain on its fuel volume.

.2. Asses the profitability of the business.

You are going into the petrol station business not only because you are passionate about this business but also because you want to make money. So, you should see if you would generate a good return on your investment.

3.Find the reasons for selling or renting the petrol station.

Only a few petrol station owners will tell you why they sell their stations. Your job is to find out why they are selling or renting. This will lead you in the right direction and guide you to success in your petrol-filling business. You should avoid renting or buying a petrol station if you discover the owner is selling because the business is not doing well, because of the sanction from relevant authorities for not complying with guidelines, or because of debt and bankruptcy.

4. Check the owner’s license.

Be sure that the petrol station you intend to buy has all the required license and permit from EWURA, NEMC, and other authorities to do what it does. With the increasing number of petrol stations running without approval from EWURA, check a station’s license before closing the deal. It will help you a lot.

5.Know the owners.

Determine exactly who the owners of the petrol stations are. Otherwise, you will purchase, and later you’ll discover that a station is owned by someone else.