Strategic storage: a budget of Rs 2 billion

11 years, 8 months ago - 27 June 2011
Strategic storage: a budget of Rs 2 billion
The State Trading Corporation (STC) is embarking on a major project of strategic storage of petroleum products at a cost of two billion rupees. Three additional tanks and pipelines will be built over a period of two years in the port area, Port-Louis

The initial plan is developed as follows: the construction of two new reservoirs, one for secure storage of gasoline with a capacity of 15,000 metric tons and the other for a safety stock of diesel, 10,000 tons metric. The whole is estimated at Rs 1. 2 Md.

The STC will also ensure, in future, the storage of gas (LPG) with the construction of a tank capacity of 5000 metric tonnes, the amount used monthly. Lack of infrastructure, the organization responsible for the importation of petroleum products is obliged to hire a specific space, a 'floating storage area' for gas storage. This, at an additional cost.

The STC is planning to arrange, with the introduction of ethanol on the local market. Omnicane, the producing company, waiting for the green light from the central government in order to realize his project. The STC, through its experience, will likely be asked to partner with Omnicane for the distribution of E10, a product composed of gasoline and ethanol. For Megh Pillay, CEO of STC, purpose is to guard against the possibility of a break in supply. "This is a major project which aims to increase our storage capacity of various petroleum products we ensure an uninterrupted supply, faced with growing consumption," he told to the Le Matinal.

 A society International has expressed its intention to invest in the construction of two additional tanks in Mauritius for the storage of 10,000 metric tons of gas. The idea is to ensure the supply of gas in the region. The government will thus soon be asked to rule on this specific project. Behind the scenes, it is suggested that negotiations are on track, especially as the government aims to position the country as a "Petroleum Trading Hub" in the Indian Ocean . In anticipation of these major developments, additional pipelines will be built. If necessary, the STC will pay a fortune for the payment of demurrage charges, especially the ship 'Red Eagle' comes into harbor with seven petroleum products in its hold, the Mangalore Oil Refinery in India. Currently, the process of landing is five to six days. Given the scale of the project, the STC has to hire a consulting firm.