Trafigura Envisions East Africa Supply Hub

Trafigura Envisions East Africa Supply Hub
Trafigura Group Pte Ltd reported Monday that it plans to transform a Somaliland oil terminal into a regional supply hub.

Trafigura Group Pte Ltd reported Monday that it will invest in Berbera Oil Terminal (BOT) facilities in Somaliland to position the complex as a regional supply hub.

Trafigura also revealed that it delivered a first shipment of low-sulfur gasoil this week to the Port of Berbera. In a written statement emailed to Rigzone, the global commodities firm pointed out the delivery follows a milestone storage agreement that it signed earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism. The company added that it has committed to transform BOT into a gateway to serve customers within Somaliland and integrate oil logistics across the Horn of Africa.

“We’re delighted to be working with a leading independent, international company like Trafigura to improve the quality and reliability of refined petroleum product supply into the country,” commented Somaliland Minister of Trade Industry and Tourism. “By working with Trafigura there will be increased transparency, high standards and increased competitiveness across the supply chain.”

Trafigura noted that it plans to upgrade BOT in a phased approach to improve and expand the facility’s storage capacity, eventually facilitating imports of jet fuel and liquefied petroleum gas (LPG) to meet local and regional demand. The company added that it expects to increase the draft to enable the port to handle larger vessels and give local traders the ability to more economically import refined products and access re-export markets.

“The agreement gives Trafigura access to the existing terminal for storage of refined petroleum products in order to supply the local market in a strategically important region,” remarked James Josling, Trafigura’s head of Africa Energy Trading. “We are working alongside the government to reduce sulfur limits in the local fuel specifications, to give the opportunity for Somaliland to align product specifications with regional market standards such as Ethiopia and Djibouti, which will promote cross-border trade while improving air quality in line with Trafigura’s wider ESG agenda and commitment to Africa.”

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