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Petromoc: Providing energy security for Mozambique

Petromoc: Providing energy security for Mozambique

According to KPMG research, Petromoc (Petróleos de Moçambique), is the second largest company in Mozambique employing over 650 people. Formed in 1997, it is the second largest gas company in Southern Africa. Petromoc is a state-owned company which is primarily responsible for the distribution and marketing of petroleum products and for setting selling prices in Mozambique.

They are a distribute a variety of petroleum products like liquefied petroleum gas (LPG), petrol, diesel, aviation fuel, kerosene, fuel oil, bitumen, and lubricating oils and greases.

Their slogan ‘always present’ has significance to their role in providing fuel and power to keep Mozambique running and through their business activities, contribute much needed revenue for the fiscus. They are the largest provider servicing the country’s largest agricultural, maritime and mining companies.  Petromoc has the capabilities to provide their customers with full technical support.

They boast a market share of 42% and achieve annual domestic sales of over 14 million cubic feet in Petromoc. Exports to neighbouring countries like Zambia, Zimbabwe and Malawi amount to over 1.2 million cubic feet.

The company owns and operates the country’s biggest retail network, which consists of over 120 service stations, 133 retail and 500 consumer positions and 28 convenience stores throughout the country. They also own and operate pipelines and storage facilities across all the key Mozambican ports, with a total capacity of over 17.6 million cf. Assets include oil terminals located at Lingamo, Beira, Matola and Nacala.

Petromoc has achieved certification in the ISO 9001 quality standard in 2016 as a result of the implementation of the Integrated Systems (SGI) for quality, environment, safety and occupational health.

Natural gas reserves

Mozambique has the third largest proven gas reserves in Africa – at least 100 trillion cubic feet in the area known as the Rovuma basin. Onshore gas fields have estimated reserves of 2.1 trillion cubic feet (Pande), 1 trillion cubic feet (Temane), and 10 million cubic feet (Buzi- Divinhe). As the third largest exporter of liquefied natural gas (LNG), Mozambique has been attracting large investors, which has the potential to boost the economy exponentially and create over 700, 000 jobs according to Standard Bank research.

Petromoc is well placed to access and take advantage of these gas reserves. Their strategy for development provides for the diversification to new products and services; the opening of new segments; and opportunities to explore upstream and downstream projects.

Strategic partnerships

Sasol, the South African energy company, has partnered with Petromoc in 2015, to purchase condensate from the Central Processing Facility which is located in Temane, Inhambane province. Petromoc believes that to ensure that the oil and gas industry is used as a catalyst for the economic growth of Mozambique, local content must be promoted and this regard Sasol has used Mozambican suppliers wherever possible.

Sasol has over a decade of experience in Mozambique and have developed the Pande/Temande natural gas project with its partners, CMH and IFC. Mozambique has given the go-ahead to Sasol to develop additional oil and gas in the country and plans to produce gas and transport it via pipeline to South Africa.

Petromoc are also partnering with ENH and CFM, the national ports and railroad company, to develop storage depots where hydrocarbons players can process gas.

Bunkering at Port of Maputo

Through a joint venture headed by Petromoc Bunkering and the Maputo Port Development Company (MPDC), the Port of Maputo has started providing bunkering services.  Since November 2016, the port offers fuel and oil to vessels moored or at anchorage.

Contracts were awarded to dredge the 76km approach channel which now allows for vessels with drafts up to 14.2 metres to access the port. This dredging project was completed early in 2017 making way for larger ships of up to 120, 000 dead weight tons to access the port.

CEO of Petromoc, Fernando Obed Uache, said that this project will provide cost- savings for shipping lines, making the port a competitive option from both a regional and international shipping perspective. It is expected that increased shipping activity will be realised from this partnership, resulting in increased tax revenues and a boost to the economy of Mozambique. Mozambique’s competitive advantage is its location and its 2470 km long coastline.  The proximity of the Port of Maputo to Johannesburg, Botswana, Malawi, Swaziland, Tanzania, Zambia and Zimbabwe, holds a lot of promise for an economic boom in the region. The port offers the shortest distance by rail to Johannesburg.

The Matola Ocean Terminal

The terminal is based at the Port of Matola and receives a variety of fuels, like gasoline, diesel, aviation fuel and domestic gas transported by ships. Petromoc distributes these fuels to petrol stations.

Construction is underway of an oil storage terminal at Matola and the contract has been awarded to Galana Petroleum Ltd, who are in partnership with Oiltanking GmbH. It is expected that the Matola Terminal will have a storage capacity of approximately 60,000 m3. On completion of the project, the terminals will be able to store refined oil products, including Gasoil (Diesel), Mogas (Gasoline), and Jet A-1. The first phase of the projects is due to be completed in the third quarter of 2017.

Intertek, a leading provider of quality testing, inspection and safety services to a wide range of industries around the world, has been awarded a laboratory contract for provision of testing services at its Matola facility, Mozambique. At present Intertek provides Inspection & “Key” Laboratory testing services to Petromoc from its terminals located at Matola; Beira & Nacala.

Lingamo Oceanic Oil Terminal

The Lingamo Terminal is about 40 hectares and is in Matola and is the entry point for petroleum products into Mozambique. The site has an operational capacity of 410.000 cubic metres and has a biodiesel refinery and an LPG filling plant. It offers storage facilities for petroleum products to companies that supply the regional market.

Plans are afoot to develop Lingamo and increase its operational capacity, modernize the filling cranes for wagons and tank trucks, and other improvements.

Beira Oceanic Oil Terminal

The Terminal is located in Munhava, Beira and has an installed capacity of 44, 000 cubic metres. The facility handles substantial amounts of fuel because of its strategic location, to Zimbabwe, Zambia, Botswana, Malawi and the DRC. The reception of the fuels handled, takes place through the fuel terminal of the Port of Beira that connects to this and other oil depots in the port area, through a pipeline that, together with the reception, also allows the operation of loading tankers. It has an additional advantage which is the connection to the pipeline of CPMZ (Pipeline Company Mozambique – Zimbabwe), which allows the pumping of petroleum products to Zimbabwe.

Currently an LPG terminal is under construction, which will be operational and ready for the reception of LPG by ship, storage of 3,000 tons of product, shipping by lorries and the cylinder filling line.

Nacala Oceanic Oil Terminal

The terminal is located in Nacala Porto – Zona Industrial and has an installed capacity of 45,000 cubic metres. This terminal supply fuel to the entire northern part of the country and is the fuel gateway to Malawi and Zambia as well as the domestic market.  It is connected to the fuel terminal by a pipeline owned by Petromoc, which has an extension of about four kilometres, enabling the installation for fuel reception operations and for the “back loading”. The LON has infrastructures that allow the loading of trucks and tank cars.

The facility has recently undergone a rehabilitation allowing the receiving and shipping line to pump different petroleum products in a segregated way contribution to conservation and longevity.

There are two other facilities owned by Petromoc in Quelimane (7000 cubic metres capacity) and Pemba ( 7000 cubic metres). Petromoc plans to increase the capacity at Pemba by an additional 11,000 cubic metres and the project is earmarked to be operational by 2018.

Future outlook

Regional expansion, the maximisation of the logistics network and diversification of its energy portfolio by developing new products and services that add value and stability features high on the outlook for Petromoc.

Social and environmental responsibility

Petromoc’s mission is to promote excellent oil derived products and services, aiming at customer satisfaction and the development of the country, while focusing on environmental protection.

Their corporate social and environmental responsibilities are taken very seriously. Petromoc supports events focused on the development of Mozambique’s national culture and identity including educational needs. They invest in the rehabilitation of the Bagamoyo Primary School, where the company financially supports students who struggle with financial resources.

Healthcare campaigns are also supported by the company and senior staff play a leading role in training activities and workshops aimed at combating HIV.

 

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