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Zambia and Tanzania are moving forward with plans to strengthen the regulation of the TAZAMA Pipeline through a memorandum of understanding (MoU) that will facilitate collaboration between the two countries.
Zambia and Tanzania are moving forward with plans to strengthen the regulation of the TAZAMA Pipeline through a memorandum of understanding (MoU) that will facilitate collaboration between the two countries.
The MoU in this regard will be signed between Zambia’s Energy Regulation Board (ERB) and Tanzania’s Energy and Water Utilities Regulatory Authority (EWURA). This development follows an inspection and familiarization tour of the Tazama Pipelines Limited operations, spanning from Dar es Salaam to Ndola.
The TAZAMA Pipelines serve as shared infrastructure between Zambia and Tanzania, and both nations recognize the importance of ensuring efficient transmission of petroleum and regulatory compliance. Considering the mutual understanding between the two countries, EWURA and ERB have cross-cutting shared interests in the transmission of petroleum and ensuring compliance by carrying out their mandates of monitoring and regulation respectively.
Once the MoU is signed, it is expected to significantly enhance the regulation of the TAZAMA Pipeline through collaborative efforts between the two energy regulators. ERB in collaboration with the Ministry of Energy, to develop a statutory instrument (SI) that would facilitate third-party access to the pipeline. This SI has already received approval in principle from the cabinet after being submitted to the Ministry of Justice.
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Zambia emphasized the importance of creating a level playing field and ensuring that all parties interested in importing Low Sulphur Gasoil (LSGO) through the pipeline can engage with TAZAMA for arrangements in proportion to their established market share. Both partners desire to see TAZAMA embark on pipeline expansion projects to eventually transport the entire LSGO supply. Currently, the pipeline meets 80% of the national LSGO demand, with oil marketing companies (OMCs) responsible for importing the remaining 20% to ensure the market’s needs are met.
