Zambia plans to reopen its sole fuel-import pipeline to multiple shippers at the start of next year. "By January, we resume open access," said Ministry of Energy Permanent Secretary Ephraim Munshifwa in remarks streamed online on Friday, adding that the process to restore it has already started.
In response to the Iran war's pressure on global energy supplies, the government earlier this year suspended third-party access and struck a deal with Vitol Group that gave the trader exclusive use of the Tazama pipeline. Officials described the move as an emergency step to safeguard the country's fuel needs and said a return to competitive bidding would follow.
The state-owned operator of Tazama, which carries fuel between Zambia's mining heartland and Tanzania's port of Dar es Salaam, had asked companies to pre-qualify to ship diesel starting in October. Earlier this month, it extended that pre-qualification window by two weeks to Sept. 22. The International Monetary Fund had urged Lusaka earlier this year to restore open access as quickly as possible, and aiming for January signals the timeline may slip beyond that ask.
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Who gets to move product through Tazama affects supply reliability and pricing in a region where fuel moves by pipeline more efficiently than by road. A shift back to open access, alongside an IMF push for more competition, could change market dynamics for distributors and transporters watching diesel flows in and out of Zambia.
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