Zambia plans to restore open access to its main fuel-import pipeline in January, ending an exclusive arrangement introduced during global energy disruptions.
The Tazama pipeline connects the Tanzanian port of Dar es Salaam with Zambia’s copper-producing region. It is a key fuel supply route for the landlocked country.
Ephraim Munshifwa, Permanent Secretary at Zambia’s Ministry of Energy, said preparations were underway to reopen the pipeline to multiple suppliers.
“By January, we resume open access,” Munshifwa said, according to Bloomberg.
Zambia fuel pipeline to reopen in January
The government had previously planned to move towards open access sooner.
Tazama had invited companies to pre-qualify to supply diesel through the pipeline from October. However, the new January timeline means the process will take longer than initially expected.
Once open access returns, multiple companies will be able to compete for capacity on the pipeline.
The change will end the current system that gives Vitol Group exclusive access.
Exclusive access introduced as emergency measure
Zambia suspended open access earlier this year as the war involving Iran disrupted international energy supplies.
The government then signed an agreement giving Vitol exclusive access to the Tazama pipeline.
Officials described the arrangement as a temporary measure designed to protect Zambia’s fuel supplies during the disruption.
However, the government also said it intended to return to a competitive system.
Under that system, several fuel suppliers would be able to use the pipeline rather than a single company having exclusive access.
IMF pushed for return to open access
The International Monetary Fund had also called on Zambia to restore open access as soon as possible, according to Business Insider Africa.
Meanwhile, Tazama has already started preparing for the change.
Earlier this month, the pipeline operator extended the deadline for companies seeking to pre-qualify for access. The deadline was moved by two weeks to September 22.
The planned reopening in January would allow a broader group of fuel importers to compete for pipeline capacity.
For Zambia, the Tazama pipeline remains particularly important because the country has no direct access to the sea.
Restoring open access is expected to bring the pipeline back to a system involving multiple fuel suppliers rather than the current exclusive arrangement.