Table of Contents

FOREWORD ...............................................................................................................................................3EXECUTIVE SUMMARY ............................................................................................................................41.0 INTRODUCTION ...........................................................................................................................82.0 ELECTRICITY SUB SECTOR ......................................................................................................82.1 Overview of the Electricity Sub-Sector ..........................................................................................82.2 Scope of the Infrastructure Audits .................................................................................................92.3 Audit Findings..............................................................................................................................102.3.1 Electricity Generation Infrastructure ............................................................................................102.3.2 Electricity Transmission Infrastructure.........................................................................................122.3.3 Electricity Distribution Infrastructure ............................................................................................132.3.4 Electricity Supply Infrastructure ...................................................................................................172.4 Major Incidents in the Electricity Sub-Sector ...............................................................................172.4.2 Significant Electricity Blackout of 18th June 2010.......................................................................172.5 Infrastructure Developments in the Electricity Sub Sector ..........................................................182.5.1 Regulatory Inspections pertaining to Planned Projects ...............................................................182.5.2 Kariba North Bank Extension Project ..........................................................................................192.5.3 Maamba Thermal Power Project .................................................................................................192.5.4 Kafue Gorge Lower Power Project ..............................................................................................192.6 Challenges and Prospects In The Electricity Sub Sector ............................................................193.0 PETROLEUM SUB-SECTOR .....................................................................................................203.1 Overview of the petroleum sub sector .........................................................................................203.2 Tazama Pipeline..........................................................................................................................203.2.1 Single Point Mooring (SPM) ........................................................................................................213.2.2 Tank Farm at Kigamboni in Dar es Salaam.................................................................................223.2.3 Pump stations..............................................................................................................................233.2.4 Pipeline........................................................................................................................................233.2.5 Pigging Stations...........................................................................................................................233.2.6 Cathodic Protection Stations (CPS) ............................................................................................233.3 Indeni Petroleum Refinery ...........................................................................................................233.4 Ndola Fuel Terminal ....................................................................................................................243.5 Transportation .............................................................................................................................253.5.1 Road Transportation....................................................................................................................253.5.2 Rail transportation .......................................................................................................................263.6 Bulk Storage Facilities (Depots) ..................................................................................................263.6.1 OMC owned depots.....................................................................................................................263.6.2 Government owned depots .........................................................................................................273.6.3 Consumer sites............................................................................................................................283.7 Retail Sites ..................................................................................................................................303.7.1 Conventional Retail Sites ............................................................................................................303.7.2 Rural Filling Station .....................................................................................................................313.8 Liquefied Petroleum Gas (LP Gas) Storage and Filling Facilities................................................313.9 Infrastructure Developments in the Petroleum Sub-Sector .........................................................323.9.1 Petroleum infrastructure under construction................................................................................323.9.2 Proposed petroleum infrastructure approved in 2010 .................................................................324.0 CONCLUSION ............................................................................................................................34

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Table of Contents

FOREWORD

It is said that 'Energy is the backbone of any economy' and this maxim is certainly true for Zambia. In order to capture the full benefits of energy there must be robust and quality energy infrastructure. The existence of quality energy infrastructure is even more important at a time like this when Zambia has recorded massive economic development which has led to an increase in demand for energy products and services.

In the 2011 to 2013 Strategic Business Plan, one of the Goals of the Energy Regulation Board (ERB) is 'To ensure the provision of quality energy services and products by the licensees'. In fulfillment of this goal, the ERB undertakes inspections of various energy infrastructure in the country to ascertain whether they are in compliance with the requirements stipulated in various Zambian technical standards. The results of these inspections form a basis for recommendations to licensed entities, Government and other stakeholders for the improvement of the infrastructure.

Whereas the ERB has been monitoring the state of infrastructure and compiling reports on the same since its inception, this is the first report that is being published. The report highlights the state of energy infrastructure in Zambia and recommendations for corrective action where applicable.

I am pleased to inform the general public that we have recorded improvements in the state of energy infrastructure as evidenced by the 'world-class' service stations that are being built in various parts of the country. The old days of dilapidated 'Fiat' tankers are now long gone. Another area that has seen tremendous improvement is the upgrading of electricity connections to former mine townships on the Copperbelt. The up rating and rehabilitation of existing power stations is a major development to note. These positive developments should lead to the provision of quality electricity to various sectors of the economy.

I would like to commend the various stakeholders for appreciating the need for improvement of energy infrastructure in the country.

It is my hope that this report will meet the intended objective of ensuring that the general public is informed about key developments in the energy sector.

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Foreword

EXECUTIVE SUMMARY

1.0 INTRODUCTION

In its continued quest to provide guidance to the energy sector, the Energy Regulation Board (ERB) conducted infrastructure inspections in both the electricity and petroleum subsectors with respect to licensing, compliance monitoring and environmental impact assessments. This report presents the findings from the infrastructure inspections covering the period January to December 2010.

2.0 ELECTRICITY SUBSECTOR

The report is as stated in subsequent pages.

2.1 Inspections

In the electricity subsector, seven (07) hydro, six (06) off grid diesel power stations and five (05) major substations were inspected for compliance to applicable standards. In addition, electricity distribution network infrastructure was inspected in all the nine (09) provinces. The combined available power generation capacity of the inspected stations with respect to installed capacity is as shown in Table 1. The national installed generation capacity stood at 1860MW.

Table1: Available Power Generation Capacity

ZESCO continued to implement the Power Rehabilitation Project (PRP) during the course of the year with a view to alleviating power shortages in the short term. In the medium to long term, new electricity generation projects such as the 360 MW Kariba North Bank extension, 120MW Itezhi-tezhi, 700 MW Kafue Gorge Lower and 300MW coal fired power plant at Maamba were being planned. ZESCO has a shareholder interest in all these projects except for the 300MW coal fired power plant at Maamba. Furthermore, new transmission networks will also be required for evacuation of power from these planned electricity generation projects.

The available generation capacity at the diesel power stations inspected during 2010 was found to be very low due to maintenance challenges associated with securing spare parts for the old equipment. Therefore regular load shedding continued to be exercised in the districts supplied by diesel power generation plants during the course of the year.

1Isolated diesel generation is made up of off grid diesel generation stations located in Lukulu, Luangwa, Zambezi, Mufumbwe, Mwinilunga, Kabompo, Shangombo, Chavuma and Kaputa districts.

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Executive Summary

The security of supply for consumers supplied from Kabwe step down substation and Kafue Town substation was a source of concern because they both had only one (01) transformer instead of two. In addition, the faulty 330kV breakers for the transformer T210 and the Kabwe- Pensulo line at Pensulo substation remained a major threat to the security of supply for consumers fed via this transmission substation. The compliance rates for substations in the respective provincial distribution networks were as shown in Table 2.

Table 2: Compliance Rate for Substation in Provincial Distribution Networks

Technical Audits for North-Western and Southern Provinces did not include distribution networks, hence the absence of compliance rates for these two provinces. Technical anomalies noted at the substations included absence of critical components such as voltage transformers, automatic voltage regulators, emergency communication facilities, fire protection cover and a lack of colour coding for equipment.

2.2 Electricity Metering

As at the end of December 2010, 307,455 out of a total of 411,117 ZESCO customers were metered representing a metered customer proportion of 74.78%. Metering is one of the Key Performance Indicators that has been set for ZESCO by the ERB.

2.3 Power Blackouts

Most parts of the country experienced a power blackout on 18th June 2010 due to a bypass scheme failure at the ZESCO Leopard's Hill substation. The incident was investigated by a Technical Committee constituted by the ERB culminating into the issuance of Regulatory Directives to ZESCO Management in December 2010.

2.4 Rural Electrification

Two (02) Rural Electrification projects in Eastern province were recommended for approval by the ERB during the year. In addition, the ERB recommended for approval the proposed electricity transmission line to be constructed between the Lunsemfwa Power Station and the Mkushi copper mine.

3.0 PETROLEUM SUBSECTOR

An efficient supply chain of petroleum products is a prerequisite for sustainable economic development. However, this supply chain needs to be supported by up to standard infrastructure in order to provide products of acceptable quality in a safe manner that promotes environmental protection. The main components of the Zambian supply chain are the TAZAMA Pipeline, INDENI Refinery, Road and Rail Transportation, depots, retail and consumer sites. By December 2010, the state of the aforementioned infrastructure was as presented in the subsequent subsections.

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3.1 TAZAMA Pipeline

During 2010, the TAZAMA Pipeline conveyed about 700,000 metric tonnes of feed stock to INDENI Refinery at an average pumping rate of 105m3/hour. This was below the design capacity of 1,100,000 metric tonnes per annum at a pumping rate of 160 m3/hr, thereby translating into capacity utilisation of 64%. The low capacity utilisation rate was attributed to poor state of some sections of the pipeline especially on the Tanzanian side. However, in an effort to increase the pumping rate to 115 m3/hr, TAZAMA Pipeline Limited continued to implement the project of replacing 22km of the weak sections of the pipeline.

3.2 INDENI Refinery

The Refinery continued to be the main source of finished products for a total of 295.7 days out of 365 days in the year 2010, thereby representing 81% equipment availability. This was against the 66% equipment availability recorded for the year 2008. The improvement was ascribed to steady supply of feedstock and regular equipment maintenance.

Despite the improvement in terms of equipment availability, the refinery's consumption and losses rate stood at 8.93% during 2010 against the design rate of 7.0%. Higher than design consumption and losses rate meant that the refinery operated at a lower level of efficiency than the efficiency rate. This reduction in the efficiency was attributed to poor state of infrastructure at the refinery. However, in the quest to improve on the losses, INDENI Refinery embarked on a project to automate some of the refinery instrumentation equipment. Even with these efforts, the refinery is still not able to produce Low Sulphur Gas Oil (LSGO) and 95 octane petrol despite the increase in demand of the two products. In order for the refinery to produce the two (02) products, installation of a desulphuriser and an isomeriser would be necessary, respectively.

3.3 Ndola Fuel Terminal (NFT)

Storage and handling of petroleum products in large quantities as the case is at NFT poses major risks in terms of safety, environmental protection, health and product quality. In order to mitigate against the aforesaid risks, availability of up to standard infrastructure at NFT is cardinal. Regrettably, the general status of infrastructure at the facility was still poor during the year 2010. However, in the quest to improve the state of infrastructure, TAZAMA Petroleum Products Limited refurbished three (03) tanks and one (01) custody transfer meter for refined products between INDENI and NFT in line with the company's five (05) year plan. The company was yet to modernise the gantries and install modern meters.

3.4 Transportation

Transportation of petroleum products to consumers ought to be conducted in a safe manner that does not compromise the health of persons that come into contact with the products, ensures environmental protection and product quality.

In 2010, the main mode of conveyance for petroleum products was by road and very little by rail despite the high cost of road transportation (US$180/tonne) in comparison with rail (US$83/tonne). This was mainly due to poor state of railway infrastructure and the respective protracted turnaround time compared to road. However, the poor state of the roads especially in outlying areas continued to pose a challenge to the safe conveyance of petroleum products by road.

In order to ensure safe conveyance of petroleum products, the ERB in collaboration with Zambia Bureau of Standards (ZABS), inspected 326 tankers during the routine annual tanker certification exercise conducted in the first quarter of 2010. The aforementioned tankers were inspected to compliance with ZS 371: Road Tank Vehicles for Petroleum Based Flammable Liquids Specification. Out of these, 321 were found to be compliant representing compliance rate of 98.5%. The non compliant tankers were barred from transporting petroleum products because they did not have all the features that would address all safety, environmental, health and product quality risks associated with

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the transportation of petroleum products. By December 2010, 38 more tankers were certified for new licenses and inclusions, bringing the total number of licensed tankers to 359.

3.5 Bulk storage

Availability of adequate and technically up to standard bulk storage facilities in the country is one of the key prerequisites to security of supply of petroleum products. In the Zambian context, bulk storage mainly refers to OMC NFT, depots, Government owned depots and large consumer facilities such as those situated at the mines. The status of these facilities by the end of 2010 was as highlighted in the subsequent sections;

3.5.1 OMC depots

One of the requirements for issuance of a distribution license by the ERB is an up to standard bulk Storage facility with a minimum capacity of 250m3.By the end of 2010, the combined national storage capacity for white products among OMCs increased from 35,303m3 in 2009 to 37,393m3,representing an increase of 5.9%. This followed commissioning of new constructed 1,090m3 and 1,000m3 capacity bulk storage facilities by Mount Meru in Lusaka and Oryx Oil in Ndola, respectively. The levels of technical compliance for most of these depots were found to be acceptable.

In the case of Liquefied Petroleum Gas (LPG), the available total storage capacity among OMCs stood at 60 tonnes comprising 40 tonnes in Lusaka and 20 tonnes in Kitwe, respectively. With the ongoing promotion of LPG as an alternative source of energy by the Government of Republic of Zambia (GRZ), it is gratifying to note that by December 2010, construction of 20 tonnes and 50 tonnes LPG storage facilities were in progress in Kitwe and Lusaka by Oryx Oil and African Gases, respectively.

3.5.2 Government owned depot

Most of the GRZ owned depots, whose infrastructures were in a state of non compliance with the technical requirements, remained non operational during the year 2010. However, in the quest to promote security of supply, GRZ embarked rehabilitation of bulk storage facility on Buyantanshi Road in Lusaka during 2010. Further, plans were also under way to rehabilitate more facilities countrywide and construct a new one in Mpika.

3.5.3 Consumer facilities

The consumer facilities situated at the mines (ie Lumwana, Kansanahi and Albidon) and Zambia Sugar were compliant with the technical requirements. However, the facility at TAZARA station in Kapiri Mposhi fell short of the requirements thereby posing a risk to safety and environment.

4.0 Retail sites

By the end of December 2010, there were a total of 195 conventional retail sites spread all over the country with a combined compliance level of 85.5% against 73% recorded in 2009. In an attempt to increase the availability of petroleum products in fuel deficit areas, the ERB continued to engage Citizen Economic Empowerment Commission (CEEC) in relation to financing of Rural Filling Stations. During the course of 2010, the CEEC evaluated 21 proposals for construction and operation of Rural Filling Station. By December 2010, no decision had been made on the projects.

5.0 CONCLUSION

Generally, the infrastructure in the energy sector had a number of shortcomings. However, it was evident that with investment, equipment recapitalisation and continuous regulatory monitoring, the situation did improve and would continue to improve with more efforts from stakeholders.

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1.0 INTRODUCTION

The Energy Regulation Act, Cap 436, of the Laws of Zambia gives the Energy Regulation Board the mandate to monitor the efficiency and performance of energy undertakings. One of the roles of the ERB in fulfilling this mandate is to ensure technical compliance of licensed undertakings through effective technical regulation of energy infrastructure and operations.

The ERB conducts technical regulation through the development and enforcement of technical standards, codes of practice and specifications. In order to ensure that licensed undertakings comply with relevant and applicable codes and standards, the ERB conducts various types of audits including license application inspections, routine infrastructure compliance audits of existing energy infrastructure, Environmental Impact Assessment(EIA) inspections, Incident Investigation inspections and product quality monitoring. In these audits, the licensed undertakings are monitored with respect to set standards covering environment, performance, service, quality, safety and reliability of energy supplies.

This state of infrastructure report describes the energy sector in 2010 with a focus on the operations and state of infrastructure of regulated entities in the year under review. It principally outlines the findings of the technical audits of infrastructure and operations of licensed undertakings carried out in 2010. It also highlights infrastructure developments and major incidents in the year under review as well as the major challenges facing the sector.

The report is divided into two main sections i.e. the Electricity sub-sector and the Petroleum sub-sector.

2.0 ELECTRICITY SUB SECTOR

2.1 Overview of the Electricity Sub-SectorThere are presently five domestic players in the Electricity Supply Industry (ESI) in Zambia namely ZESCO Limited, Copperbelt Energy Corporation (CEC), Lunsemfwa Hydro Power Company (LHPC), North Western Energy Company (NWEC) and Zengamina Power Limited (ZPL). ZESCO Limited is a state-owned, vertically integrated utility involved in the generation, transmission, distribution and supply of electricity throughout the country. CEC is a private company that owns part of the transmission and distribution network on the Copperbelt province. CEC purchases bulk power from ZESCO and supplies this power to the mines on the Copperbelt province.

LHPC is an Independent Power Producer (IPP) located in the Central province involved in the generation, distribution and supply of electricity. NWEC is a privately owned utility that is involved in the distribution and supply of electricity to the non mining areas within and around the Lumwana mine area in the North Western province. ZPL is

a privately owned off grid utility that is involved in the generation,

distribution and supply of electricity to the Kalene area in the North-Western province. The figure below outlines the main players in the Zambian ESI and their interaction.

Figure 1: Key Participants of the Zambian Electricity Supply industry

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Introduction

The country's hydropower resource potential stands at an estimated 6,000 mega watts (MW) while the installed capacity is about 1,860 MW as indicated in Table 1 below.

Table 1 - Current Installed Electricity Generation Capacity

2 Isolated diesel generation is made up of off grid diesel generating stations located in the following districts:Lukulu, Luangwa, Zambezi, Mufumbwe, Mwinilunga, Kabompo, Shangombo, Chavuma and Kaputa

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3 For a district, the sample chosen typically included the bulk supply substation plus some

distribution substations.

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The electricity sub-sector has experienced continued growth in electricity demand over the past five years. This has primarily been driven by the strong growth in mining, industrial and domestic demand. These rapid developments in power demand have put pressure on existing generation capacity that has been constrained by the ongoing Power Rehabilitation Project (PRP). This in turn has resulted in power shortages that have led to increased load shedding.

On completion of the power rehabilitation project (PRP) by ZESCO Ltd, the power shortages are expected to be alleviated in the short term. In the medium to long term, new generation projects are planned for the ESI including the 360MW Kariba North Bank Extension project, the 120MW Itezhi-Tezhi Power Project, the 600 - 750MW Kafue Gorge Lower power project and the 300MW coal-fired power plant at Maamba. Construction of new transmission networks will also be required to facilitate the evacuation of this additional power to the consumers.

2.2 Scope of the Infrastructure Audits

The ERB conducted various types of regulatory inspections which informed this report. The main types of regulatory inspections conducted were routine audits and Environmental Impact Assessment audits. Routine audits were those planned in advance and involved checking the utility infrastructure for compliance against engineering standards and prudent utility practice. Environmental Impact Assessment audits were conducted so as to analyse the effect upon the environment posed by a proposed energy infrastructure. With respect to a transmission line for example, the inspection sought to establish whether the proposed line route would be the best as compared to other alternative routes.

The purpose of the routine audits was to physically ascertain the conditions prevailing at the various infrastructure covering generation, transmission, distribution and supply of electricity. The routine audits were conducted in the framework of an audit manual and checklist formulated by the ERB with the intention of establishing whether the infrastructure was compliant with the stipulated license conditions, regulations and applicable standards and codes of practice.

Electricity generation infrastructure including the hydropower plants at Kafue Gorge, Kariba North Bank, Victoria Falls, Lusiwasi, Lunsemfwa, Mulungushi, Musonda Falls and Chishimba Falls and the isolated diesel generating plants at Lukulu, Shangombo, Kabompo, Mufumbwe, Chavuma, Zambezi and Mwinilunga were covered during these audits. With the exception of the plants at Mulungushi, Lunsemfwa and Zengamina, the generation infrastructure inspected is owned and operated by ZESCO Ltd.

The transmission infrastructure covered under these audits included the major substations at Pensulo, Kabwe Step-down both of which are owned by ZESCO Ltd and most of the 220/66kV substations on the CEC network.

The approach taken for distribution infrastructure audits was to conduct provincial onsite visits to the 3bulk supply stations in the main towns of the provinces and randomly selected samples of the

distribution infrastructure and holding meetings with the respective utility's responsible personnel. All the nine provinces were covered under the distribution infrastructure audits.

2.3 Audit Findings

2.3.1 Electricity Generation Infrastructure

2.3.1.1 Kafue Gorge Power Station

At the Kafue Gorge Hydro Power Station, all the six generators were in operation at the time of the inspection in November 2009; the installed capacity was 990 MW and the available capacity was also 990 MW.

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2.3.1.2 Kariba North Bank Power Station

Only three out of the four generators at Kariba North Bank Hydro Power Station were in operation at the time of the inspection in November 2010; the installed capacity was 690 MW and the available capacity was 540 MW. The non-operational generator was out of service for the Power Rehabilitation Project (PRP) works. It was established that only the runners on generators 1 and 2 had been up rated from 150 MW to 180 MW implying that even when the PRP would be completed, this station will not be able to generate at the full installed capacity i.e. despite increasing the station's installed capacity from 600 MW to 720 MW, the station will only be able to deliver an available capacity of no more than 660 MW. The maximum available capacity of the station will therefore only be about 92% and not 100%.

2.3.1.3 Victoria Falls Power Station

Of the 13 generators at the Victoria Falls Hydro Power Station, only 12 were operational at the time of the inspection in November 2010. The thirteenth generator ( a 10 MW machine) had not successfully been commissioned at the completion of the PRP works because its stator windings got burnt. It was established that the restoration works for this generator were in progress. The installed capacity of this station remained at 108 MW and the available capacity stood at 98 MW.

2.3.1.4 Lusiwasi Power Station

Only three out of the four generators were in operation at the time of the audit. The installed capacity at the plant is 12 MW while the available capacity is only about 6 MW. The generator that was out of service had a worn out bearing. The other three machines were not able to generate up to full capacity due to problems associated with the aging of the equipment such as worn out turbine runners, leakages in the cooling water system and overheating. Due to obsolesce of the machines, sourcing of spares has proved to be very difficult.

2.3.1.5 Mulungushi Power Station

The plant has an installed capacity of 28 MW made up of a 1 x 10 MW unit and 3 x 6 MW units. All the units were in service at the time of the audit. The power station recently underwent refurbishment involving the upgrade of the intake canal, installation of a new 10 MW generator, (complete with new runner and associated controls) to replace the old 2.5 MW machine. Thus far the new machine has been able to achieve an availability of 92% since its commissioning in 2009.

2.3.1.6 Chishimba Falls Power Station

The station has eight machines in two schemes. The first scheme called A Station was commissioned in 1959 and has four 300 kW unit machines while the second scheme called B Station was commissioned in 1974 and has four 1200 kW unit machines. Currently, all the machines are running and plans are in place to synchronise the station to the national grid. A new relay panel for the new circuit breaker and charger for control and protection has been installed at the station. The substation is also scheduled for some improvements involving the installation of an isolator, a breaker, current transformers and a protection cubicle. Though the water available for generation is adequate, the old machines running are unable to generate up to full capacity. One of the two transformers at Kasama 33/11kV substation is to be dedicated to Chishimba Fall Power Station.

2.3.1.7 Musonda Falls Power Station

Musonda Falls Power Station is a mini hydro power station with an installed capacity of 5MW consisting of five machines each rated at 1 MW. Machine No.4 was due to be taken out of service due to uncontrolled vibrations that have persisted causing cracks in different places within the power house. Due to lack of readily available spare parts for the machines, maintenance is not robust and the

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machines are only able to generate 4 MW.

2.3.1.8 Lukulu Diesel Fuelled Generating Plant

The installed capacity at the Lukulu Diesel Generation Station was 576kW. However, the available capacity was only 480kW due to inability of the two installed generators to generate at the respective peak rated capacities. These two machines are not sufficient to cater for the demand in the district and as such load rationing has been put in place to cater for all customers.

2.3.1.9 Shangombo Diesel Fuelled Generating Plant

The installed capacity at Shangombo Diesel Generation was 640kW. The available capacity was only 320kW as one of the generators was out of service at the time of the audit. The recorded maximum demand was 122 kW against an installed generation capacity of 640 KW (and an available capacity of 320 KW). However, load shedding was carried out by the utility in its quest to limit the amount of diesel used for electricity generation.

2.3.1.10 Kaputa Diesel Fuelled Generating Plant

The installed capacity at the Kaputa Diesel Generation Station was 600 kW consisting of a 400 kW generator and a 200 kW generator. These generators are not sufficient and as a result there is constant load shedding. During peak hours, customers with huge loads such as hammer mills are asked to be off. Supply hours are from 05:00hrs in the morning to midnight.

2.3.1.11 Mwinilunga Diesel Fuelled Generating Plant

The installed capacity is 1480 kW consisting of two 740 kW generators. Both machines were installed and commissioned in 2010. The recorded maximum demand was 881kW. Only one machine is switched on during normal demand while the second machine is switched on during peak period. Power is supplied from 06:00 hours to 24:00 hours.

2.3.1.12 Kabompo Diesel Fuelled Generating Plant

The installed capacity for this station is 720 kW. The machine was installed in 2009. Maximum demand for this plant has been recorded at 800kW. During peak time, the water works being a large customer is load shed to save about 100KW. Supply hours are from 06:00 hours to 24:00 hours.

2.3.1.13 Zambezi Diesel Fuelled Generating Plant

The plant has an installed capacity of 1280 kW consisting of two 640 kW generators. The machines were installed in 2010. The maximum load recorded so far is 720kW. One machine runs from 07:00 hours while the other machine is switched on during peak time (from about 18:30 to 22:00 hours).

2.3.1.14 Luangwa Diesel Fuelled Generating Plant

This plant was not inspected in 2010. However, in 2009 the installed capacity for this station stood at 1280 kW. There were two installed generators each with a capacity of 640 kW. The district maximum demand was in the order of 232 kW.

2.3.2 Electricity Transmission Infrastructure

2.3.2.1 Pensulo substation

Pensulo receives its supply from Kabwe Step-down substation via a 330kV line. Two 65 MVA, 330/66kV transformers are installed at this station. There are also two 36.3 MVAr shunt reactors at this station; these shunt reactors are used to control the voltage on the receiving end of the incoming 330 kV

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transmission line that feeds the substation.

It is however noted that security of supply at the station is compromised due to the faulty 330kV breaker for transformer T210. As a result, this transformer is now being protected by the bus coupler. The 330kV breaker on the Kabwe Pensulo line at Pensulo is also defective due to a faulty closing coil and is in a permanently closed position such that protection for the line is only done by the 330kV breaker at Kabwe step-down. It was also noted that the station does not have an emergency black start generator. Because the foregoing omissions compromise the security of supply, electricity customers fed via this transmission substation are made to experience unnecessary power outages which ordinarily they shouldn't have experienced had the substation had all equipment in working order.

Another issue of concern is the theft of counterpoise wire on the Pensulo Mpika line rendering it susceptible to faults during storms.

2.3.2.2 Kabwe Step-down substation

The substation is fed by supplies from LHPC via 2 x 66kV lines and from the ZESCO grid via 3 x 330kV lines from Leopards Hill substation. The station presently has only one 65MVA, 330/88kV transformer as the other one was relocated to Kafue Town substation to replace the 330/88kv transformer that got burnt at Kafue Town substation in 2005. This has made the scheduling of maintenance on this lone transformer very challenging. A new replacement transformer has since been procured and was expected to be commissioned by December 2010.

At the time of the inspection, one of the compressors was defective and was out of service. Further, the emergency black start generator had not yet been wired to start automatically and the battery for the generator was being kept in the control room due to security concerns. This compromises preparedness for emergency situations.

2.3.2.3 Michelo 220/66kV Substation

Located in Chililabombwe district, this is a modern substation well equipped with a new protection system in place. It has 2×120MVA transformers and a Mulsifyre fire protection system. The substation has a new line to Karavia and the commissioning of the 220kV equipment at the substation has helped improve system stability and reliability in the area.

2.3.2.4 Luano 220/66kV substation

This substation has a total capacity of 6×65MVA. The six transformers are in good condition and do not have oil leaks. The protection system is tested on a quarterly basis and the station even has a backup control room in place. Most of the equipment labels are legible and in good repair. In addition, danger or warning signs are visible in appropriate places.

2.3.2.5 Kansuswa 220/66kV Substation

This substation has a total capacity of 4×85MVA. All the transformers have oil spill containment tanks in place and do not have leaks. All the breakers are operational and in good condition; the protection system is in place and tested quarterly. The station fence is intact with danger/ warning signs in place. The electric shock treatment guide and first aid kit are available.

2.3.3 Electricity Distribution Infrastructure

2.3.3.1 Western Province

The configuration of the electricity infrastructure in Western province is radial, such that electricity flows into the area from the south. There is a ZESCO 66 kV transmission line that extends from

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Livingstone district in Southern province into Western province, passing through Sesheke, Senenga, and Mongu before terminating in Kaoma district. An 11 kV distribution line connects Mongu district to Kalabo district. Furthermore, there is a ZESCO 220 kV transmission line connecting Livingstone and Sesheke districts. Also, a cross border 220 kV interconnector exists between Zambia and Namibia extending from Sesheke district in Zambia to Katima Mulilo district in Namibia. Shangombo and Lukulu districts are supplied from their respective diesel based electricity generation plants. Because of the 66 kV transmission voltage level, voltages in this province are low especially when the 220 kV transmission line between Livingstone and Sesheke is out of service. Kaoma being at the terminal end of the power line experiences the lowest voltages.

Electricity distribution infrastructure in Mongu, Senenga, Kaoma and Kalabo were inspected during October 2010 covering the respective bulk supply and selected distribution substations. Some critical substation components such as voltage transformers, automatic voltage regulators, and emergency communication facilities are missing at some locations. Furthermore, the bulk supply substations continue to operate without firm capacity. The average substation compliance was found to be 57%.

There was 10 MVA of installed capacity at the Mongu bulk supply substation; the September 2010 maximum demand was 6.6 MVA indicating that the substation was capable of meeting the local peak demand. Kalabo district is in effect a part of the Mongu distribution network drawing its power via an 11 kV distribution line from the Mongu bulk supply substation; the September 2010 maximum demand for Kalabo district was 521 KVA. The installed capacity at the Kaoma bulk supply substation was 2.5 MVA; the September 2010 maximum demand was 1.6 MVA indicating that the substation was capable of meeting the local peak demand. At the Senanga bulk supply substation the installed capacity was 2.5 MVA; the September 2010 maximum demand was 1.1 MVA. In Shangombo district, the September 2010 maximum demand was 122 kW against an installed generation capacity of 640 KW (and an available capacity of 320 KW). However, load shedding was carried out by the utility in its quest to limit the amount of diesel used for electricity generation. In Lukulu district, the September 2010 maximum demand was estimated to be in the region of 600 KVA against an installed generation capacity of 720 KVA. Load shedding was carried out by the utility on account of reduced available capacity as well as to limit the amount of diesel used for electricity generation.

2.3.3.2 Eastern Province

With the exception of Lundazi and Chama, Eastern province is fed from Zambia national power grid via Msoro substation. Lundazi and Chama are supplied from the Malawian national grid. Msoro gets its supply from Pensulo substation and Lusiwasi substation through two 66kV lines. There are three 66kV lines from Msoro supplying Chipata bulk supply substation, Azele bulk supply station and Mfuwe.

Nyimba, Petauke, Sinda, Katete and Chadiza are supplied by radial lines from the Azele 66/33kV substation

Electricity distribution infrastructure in Chipata, Nyimba, Petauke, Sinda, Katete, Chadiza, Chama, Lundazi and Mambwe was inspected. The inspections covered bulk supply substation and distribution infrastructure.

Due to the radial nature of the network in the region and the fact that power to the region is transmitted over a long distance by a 66kV line, the region usually suffers depressed voltage during peak periods. There is also the problem of faulty electrical protection equipment such as circuit breakers and protection relays at most of the sites.

It is noted that most bulk supply substation lack redundancy in terms of transformer capacity thereby compromising system reliability and security of supply. In addition, bulk supply substations continue to operate without adequate fire protection equipment. As with most regions, there are no records of maintenance at most sites. The average substation compliance was found to be 53%.

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In Nyimba district the transformer installed capacity at the bulk supply substation was 2.5 MVA against a maximum demand of 1.0 MVA. In Sinda district, the transformer installed capacity at the bulk supply substation was 2.5 MVA against a maximum demand of 1.23 MVA. In Mfuwe district the transformer installed capacity at the bulk supply substation was 2.5 MVA against a maximum demand of 1.5 MVA. In Chipata district, the transformer installed capacity at the bulk supply substation was 15 MVA against a maximum demand of 13.0 MVA. In Lundazi district, the transformer installed capacity at the bulk supply substation was 2.2 MVA against a maximum demand of 2.0 MVA. There was no bulk metering equipment installed at Petauke, Katete and Chadiza; therefore the maximum demand could not be ascertained. For Chama district, the maximum demand data was not available.

2.3.3.3 Central Province

Central province is fed from the national grid at Kabwe step-down and Pensulo substations and from Lunsemfwa Hydropower Company (LHPC) at Kabwe step down substation. Kabwe, Kapiri-Mposhi and parts of Mkushi are fed from the 88kv network from Kabwe Step-down substation. Serenje is fed via a 66kV line from Pensulo substation. This 66kV line has been extended into Mkushi to supply a new substation called Mkushi Central.

The audits of distribution infrastructure in Central Province covered Kabwe, Kapiri-Mposhi, Mumbwa, Serenje and Mkushi.

Kapiri-Mposhi and parts of Mkushi which receive power from Kapiri-Mposhi experience low voltages due to the low voltages experienced on the 88kV network from Kabwe into Kapiri-Mposhi. The Mkushi distribution network is experiencing transformer capacity constraints due to the ever increasing demand. The Kabwe-Kapiri Mposhi 88kV line has continued to operate without a circuit breaker at the Kapiri-Mposhi end. Most of the sites are operating without adequate firefighting equipment. The average substation compliance was found to be 59%.

In Mumbwa district, the transformer installed capacity at the bulk supply substation was 5 MVA against a maximum demand of 3 MVA. In Serenje district, the transformer installed capacity at the bulk supply substation was 5 MVA against a maximum demand of 1.5 MVA. In Kapiri Mposhi district, the transformer installed capacity was 40 MVA against a maximum demnd of 32.5 MVA. In Mkushi Central, the transformer installed capacity was 20 MVA against a maximum demand of 8 MVA.

2.3.3.4 Lusaka Province

Lusaka province of Zambia is normally supplied with electrical power from a 132kV backbone ring connecting Roma, Coventry, Waterworks, Lusaka West and Leopards Hill substations. The power is then stepped down at these substations further to 33kV and 11kV for distribution to various customers in Lusaka.The main sources of power are Kafue Gorge and Kariba North power stations.

Power from Kafue Gorge and Kariba North power stations is transmitted via four 330kV lines (two from each power station) to Leopards Hill 330/132/88 kV substation and one 330kV line from Kafue Gorge to Kafue West substation. Kafue West is then linked to Lusaka West and Leopards Hill substations via two 330kV lines.

The Lusaka Province audits covered the following bulk supply stations: - Coventry, Roma, Waterworks, Chongwe, UNZA, Matero and Liverpool

It was established that there is generally a problem of construction of facilities under the Lusaka West Liverpool 33kV lines in the heavy industrial area. The area around Matero substation has also been encroached by the mushrooming residential dwellings which will make future expansion of the substation very difficult.

The dc battery system at Chongwe was found to be in a bad state and needs replacement. It was also

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observed that equipment labeling in most of the substations is not legible. As with most other ZESCO installations, the firefighting equipment was inadequate and in some cases was overdue for service. The average compliance level was determined to be 68%.

2.3.3.5 Southern Province

The district of Livingstone is supplied by a 33 kV distribution line fed from the Zambian interconnected electricity grid via the Victoria Falls Power station substation. A radial 33kV distribution line runs from Livingstone supplying Zimba district, parts of Kalomo and Choma districts. Furthermore, a 220kV transmission line runs from the Victoria Falls Power Station in Livingstone to Muzuma substation in Choma and then extends to the Kafue Town Transmission substation in Kafue District. A 33kV radial line from Muzuma substation supplies Choma town and extends to supply parts of Kalomo. Another 33kV line from Choma supplies Namwala district and extends up to Itezhi-Tezhi where it terminates. Maamba District is fed via an 88 kV transmission line that runs from Muzuma substation to the Maamba bulk supply substation. Sinazongwe District is supplied by a 33 kV distribution line that runs from the Maamba bulk supply substation to the Sinazongwe bulk supply substation.

Mazabuka District is supplied by an 88 kV radial transmission line that runs from the Kafue Town transmission substation to the Mazabuka bulk supply substation. Kafue district is supplied from the Kafue Town substation and from the Leopards substation in Lusaka. A 33kV radial distribution line from Mazabuka supply substation supplies electricity to Monze district. Chirundu district is supplied via an 88 kV transmission line from the Leopards Hill substation in Lusaka.

The only distribution infrastructure inspected was the Itezhi-Tezhi bulk supply substation. The facility was not compliant to electricity standards; among other findings, the phases did not have the relevant colour coding and there were no emergency communication facilities. The installed capacity at this bulk supply substation as at October 2010 was 2.5 MVA. However, the substation maximum demand could not be ascertained because the facility did not have bulk metering equipment.

2.3.3.6 Northern Province

Northern Province gets its supply from the national grid via the long, radial 66kV line from Pensulo substation. The audits covered electricity distribution infrastructure in the following districts:- Kasama, Mpika, Mpulungu, Mbala, Mporokoso, Luwingu, Nakonde, Isoka and Chinsali. Substations in the province are characterised by lack of firm capacity at most bulk supply substations, transformer oil leaks, defective circuit breakers and inadequate electrical protection for the transformers. The fighting protection for the transformers and other substation equipment is also inadequate. It was also noted that some stations have defective dc (battery) systems that need to be replaced. The province has continued to experience low voltages during peak periods due to the long and radial nature of the supply from Pensulo substation.

Sub-standard practices such as placing of ground mounted transformers on rails instead of standard plinths were also noticed. The fencing for most of the outdoor substations and ground mounted transformers also needs attention. The average compliance level was determined to be 68%.

In Mpulungu district, the transformer installed capacity at the bulk supply substation was 2.5 MVA against a maximum demand of 2.1 MVA. In Mbala district, the transformer installed capacity at the bulk supply substation was 5 MVA against a maximum demand of 2 MVA. In Mporokoso district, the transformer installed capacity at the bulk supply substation was 0.5 MVA against a maximum demand of 0.3 MVA. In Isoka district, the transformer installed capacity at the bulk supply substation was 5 MVA against a maximum demand of 1.2 MVA. In Chinsali district, the transformer installed capacity at the bulk supply substation was 5 MVA against a maximum demand of 1.6 MVA. There was no maximum demand data available for Kasama, Luwingu, Nakonde and Mpika.

2.3.3.7 Luapula Province

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Luapula Province primarily receives electricity from the national grid via the radial 66kV network which emanates from Pensulo substation. In addition to the supply from the national grid, Mansa and immediate surrounding areas also receives power from Musonda Falls Power Station via a 33kV radial line.

The audits covered distribution infrastructure in Mansa, Samfya, Mbereshi, Kawambwa and Nchelenge. The electricity infrastructure in Luapula province is, in general, in need of investment to ensure refurbishment of existing infrastructure and embarking on an expansion programme to meet the ever increasing demand. As was noticed in other provinces, bulk supply substations in the province are characterised by lack of firm capacity. Due to the nature of the supply from the national grid from a long and predominantly radial 66kV network, the province experiences low voltages in most areas especially during peak periods. Another area of concern is the bad state of repair of fencing for most outdoor substations. This poses a safety hazard to the general public. The average compliance level was determined to be 60%.

In Mansa dsitrict, the transformer installed capacity at the bulk supply substation was 5 MVA against a maximum demand of 2 MVA. In Mbereshi district, the transformer installed capacity at the bulk supply substation was 3 MVA against a maximum demand of 1.5 MVA. There were no metering equipment installed at the bulk supply substation in Samfya district and therefore the maximum demand could not be ascertained. Further, no data was available for Kawambwa district.

2.3.3.8 Copperbelt Province

Supply for the ZESCO distribution is primarily supplied from the national grid at Kitwe 330/220 kV and Luano 330/220kV substations and wheeled through the CEC network. Audits for electricity distribution infrastructure on the Copperbelt covered Ndola, Luanshya, Kitwe, Mufulira, Chingola and Chililabombwe.

The majority of the distribution networks in the ex-mine townships are unsafe and need replacement with standard three phase four-wire systems. In areas where these standard networks exist, lack of consistent maintenance is evident. Houses in most ex-mine townships have no individual earth while neutral earthing is not present at some substations. Fuses in some feeder pillars have been replaced with thick wires while the majority of feeder pillars are not secured. Most of the distribution substations either lack the requisite fencing and in most cases where the fencing is in place, there are no locking facilities. The state of infrastructure in CEC substations is generally in good condition. Safety standards are adhered to and this is even reflected by minimal accidents recorded annually. It is however noted that the 66/11kV substations do not have adequate firefighting equipment. Some of these substations have not been provided with adequate drainage nor spill containment facilities. The average compliance level for the CEC infrastructure inspected was found to be 85%.

2.3.3.9 North-Western Province

The electricity distribution audits covered Kabompo, Mufumbwe, Chavuma, Zambezi and Mwinilunga which are served by diesel fuelled power stations. These have, up until recently, provided unreliable power supply at a high cost to ZESCO in terms of fuel used to run them. Inspections conducted at three of the five diesel fuelled stations generally showed notable improvement in the power supply situation. This is because all the five districts now have two new diesel powered machines running except Kabompo which has only one machine running at the moment. The detail pertaining to these machines is captured under the section on electricity generation infrastructure.

2.3.4 Electricity Supply Infrastructure

2.3.4.1 Metering

In an effort to reduce losses and metering backlog, ZESCO has embarked on loss reduction strategies

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which have included installation of meters, ring-fencing the branches and door to door inspections to abate electricity thefts.

Credit meters being recovered from the pre-payment installation projects in Lusaka and the Copperbelt are being installed in the other regions to dismantle the metering backlog. ZESCO also procured some single phase credit meters from China (the shanghai meters) for the metering exercise but these proved to be problematic and most of them have since been recovered from the system. As at end of December 2010, the largest electricity utility, ZESCO Limited had a total of 411, 117 customers out of which 103, 662 customers were not metered indicating a 25% unmetered proportion.

To ensure accountability for the power received in each of the branches, ring-fencing of the branches has been instituted by placing bulk metering at interface points at which the branches receive the power. This has so far been done in Central province and some areas in Southern Province

The ERB as part of its Key Performance Indicators (KPIs) monitoring framework has set targets for ZESCO which include metering and distribution losses among others. It is planned that these targets automatically feed into the tariff determination process as a way of further incentivizing the utility.

2.4 Major Incidents in the Electricity Sub-Sector

2.4.2 Significant Electricity Blackout of 18th June 2010

On 18th June 2010, a system disturbance occurred within the ZESCO electricity network and resulted in significant electricity black out that affected most parts of the country. The ERB constituted Technical Committee investigated this blackout and, among other findings, established that the incident was initiated by a fault at the Leopards Hill substation when the bypass scheme failed. Further, the committee concluded that the current protection philosophy at Kafue Gorge and Kariba North Bank power stations on the ZESCO 330 kV transmission system developed under the Power Rehabilitation Project (PRP) were adequate. However, the committee reported that the performance of the generator transformers at the Kafue Gorge power station installed under PRP had been unsatisfactory as evidenced by the several premature failures.

The ERB constituted technical committee recommended among others, that ZESCO undertakes a detailed study of the cause of failure and if necessary review and overhaul the bypass system at Leopard Hill substation and at other substations. The committee further noted that ZESCO had already initiated a process to procure four new transformers from other manufacturers to replace the generator transformers at the Kafue Gorge power station. It was also recommended that ZESCO takes additional immediate steps to resolve the matter with the initial equipment supplier.

The committee's recommendations were adopted by the ERB and Regulatory Board Directives were issued to the ZESCO Management in December 2010.

2.5 Infrastructure Developments in the Electricity Sub Sector

2.5.1 Regulatory Inspections pertaining to Planned Projects

i). Proposed Itezhi-Tezhi Electricity Generation Project

The nature of this inspection was a regulatory familiarisation visit. The proposed project is a 120 MW hydropower plant, benefiting from the use of an existing dam and a reservoir infrastructure. The Project will use the existing intake and upstream part of the diversion tunnel as the intake and headrace tunnel, and the downstream part of the diversion tunnel as a tailrace tunnel. New facilities will include a short penstock, a valve chamber, a machinery hall, transformer gallery, access tunnel to the machinery hall, and a switchyard. The power station will consist of two (2) generators of 60 MW each which will be developed as a surface powerhouse. The generator voltage is expected to be 11 kV which will be stepped-up to 220kV. The power is

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3.0 PETROLEUM SUB-SECTOR

3.1 Overview of the petroleum sub sector

The availability and cost of quality petroleum products on the Zambian market is strongly dependent on the existence of sound and suitably located infrastructure support. Currently, petroleum in Zambia is imported as either commingled feedstock or finished products to service the market through a supply chain as illustrated below.

Figure 2: The Zambian Petroleum Chain

The entire chain above, just like the rest of the energy sector in Zambia, is regulated by the Energy Regulation Board (ERB) in accordance with the provisions of the Energy Regulation Act Cap 436 of the Laws of Zambia. In doing so, various technical standards and guidelines have been developed to provide direction in the sub sector focusing on safety, environmental protection, health and product quality. Compliance with the said standards form part of the licence conditions.

3.2 Tazama Pipeline

The 1710 km TAZAMA pipeline and associated infrastructure was set up in 1968 and is jointly owned by the Governments of Tanzania and Zambia with a shareholding of 33% and 67% respectively. The pipelines consist of a series of 8 inches (8”) and 12 inches (12”) sections. The pipeline is used for conveying commingled feedstock from the tank farm at Kigamboni (Dar-es-Salaam) in Tanzania to the INDENI Petroleum Refinery in Ndola, Zambia. The design throughput for the pipeline is 1.1 million

3metric tonnes per year at an average flow rate of 160 m /hour. The pipeline was originally designed to transport white products but was later converted to the crude mode in 1973 when Indeni Refinery came on stream.

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Petroleum Sub-Sector

The pipeline passes over the challenging terrain of the Great East African Rift Valley and as such, seven (07) pump stations have been provided for along the length of the pipeline. Two of these located on the Zambian side (Kalonje and Chinsali pump stations) whilst the remaining five are on the Tanzanian side (Mbeya, Iringa, Elphons Pass, Morogoro and Kigamboni). The location of the pump stations are at distances indicated below;

Name Distance from SPM Country

Kigamboni 7 Km TanzaniaMorogoro 176 Km TanzaniaElphons Pass 347 Km TanzaniaIringa 467 Km TanzaniaMbeya 799 Km TanzaniaChinsali 1104 Km ZambiaKalonje 1360 Km Zambia

The status of some of the areas of the pipeline is discussed in the following subsections.

3.2.1 Single Point Mooring (SPM)

Situated in the Indian Ocean, off the port of Dar-es-Salaam at Mjimwema bay, is the Single Point Mooring (SPM). The SPM is owned by the Tanzania Port Authority (TPA) and is mainly used to offload crude oil destined for Zambia. The facility has two flexible piping that connect the tanker to the buoy. The buoy is linked to the 3 km 36” undersea pipeline that takes feedstock to the shore tanks at the TAZAMA tank farm. The SPM is used to offload tankers of more than 45,000 tonnes, deadweight. Tankers with deadweight of less than 45,000 tonnes normally use the Kurasini Oil Jetty (KOJ) at the harbour to offload both crude and finished products. The facility was commissioned in April 1973. In December 1996, the SPM was damaged by fire and later replaced by a reconditioned IMODCO CALM buoy.

The SPM covered in net to prevent sea gulls nesting on it

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The SPM is connected to the TAZAMA tank farm through 7 Km of 36 inch undersea and surface pipeline which is in a poor state of disrepair and requires urgent attention. The useful life of the submarine portion is said to have expired in 1996 following an assessment that was carried out in 1986. The assessment gave it an estimated life of 3.5 to 9 years at the time. In the same survey, the land portion useful life was estimated at 1.5 to 4.5 years depending on the predicted corrosion rate assumptions.

During offloading of product, numerous leaks are reported and observers are stationed along the line throughout the offloading process, while fire fighting resources are put on alert. As a safety precaution, the undersea line is flushed with water after offloading to avoid spills, while the pumping pressure has been reduced from the design value of 11.5 bar to 5 bar.

The use of the facility by TAZAMA in its current state is through an indemnity arrangement with the Tanzanian Government given the environmentally compromised state of this installation.

There is a proposal to convert the SPM into a multi product offloading facility that would also include refined products for other users. The Government of Tanzania was negotiating with a contractor to install a new multi-purpose SPM (crude, Jet A1, Petrol, Diesel) at Mjimwema near the existing SPM. The new SPM will be installed complete with new 36” undersea and onshore lines up to the TAZAMA tank farm.

3.2.2 Tank Farm at Kigamboni in Dar es Salaam

3 3The Kigamboni Tazama tank farm consists of 3 x 36,000 m and 3 x 41,000 m aboveground floating 3roof tanks giving a total installed storage capacity of 231,000 m . One (1) tank (T3) has been

undergoing rehabilitation for many years and the works have finally been completed. Commissioning of the tank was scheduled for end of 2010.

The tank farm is used for storage of feedstock (crude oil) after offloading from the cargo ships prior to conveyance to Indeni through the pipeline.

One of the feedstock tanks at the Kigamboni Tank farm

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3.2.3 Pump stations

The seven (07) pump stations along the pipeline are operated using reciprocating engines which run using the commingled feedstock as a fuel. Each of the pump stations has a set of four (04) by 450 horsepower (hp) engines. In general only two (2) are in use at any one time, leaving the other two on standby. However, at Elphons Pass, the pump station has to operate three (03) engines at any given time due to the East African Rift Valley that the pipeline traverses after this station. The engines at Iringa therefore operate at high pressure of around 1360 Psi against the design pressure of 1450 Psi.

The existing engines at all the pump stations were bought second hand in 1968 when the pipeline was being installed and are now old, with a lot of challenges being faced as regards to the procurement of spares. Most of the spare parts are made to measure with long lead times.

TAZAMA is currently carrying out an assessment of a wide range of fuel oil fired engines manufactured by Cummins, Scania, Caterpillar, MAN and HITACHI. Once the assessment is completed and the desired engines are selected, a phased installation programme will be undertaken with the engines at Kigamboni being the first ones to be replaced.

3.2.4 Pipeline

The current throughput of the TAZAMA pipeline is about 700, 000 metric tonnes per annum representing about 64% capacity utilization. The reduced throughput of the pipeline compared to the design value of 1,100,000 metric tonnes per annum is mainly attributed to poor state of some sections of the pipeline in mainly Tanzania. TAZAMA has embarked on a project to replace about 22 km of weak sections of the line in Tanzania identified through internal monitoring exercises such as pipe-to-soil potential measurements and monitoring (cathodic protection), pigging, patrols and other surveillance exercises that are undertaken regularly. The line replacement exercise commenced in 2009 and is expected to cost about $3 million dollars. These weak sections have significantly contributed to the

3reduced pumping rate of about 105m /hour.

It is expected that once these works are complete, the pumping rate would be raised to about 3115m /hour.

3.2.5 Pigging Stations

TAZAMA pipeline has 20 pigging stations (PS), with 12 in Tanzania and 8 in Zambia. At these stations, an internal pipeline cleaning tool called pipeline internal gauging (PIG) is received and launched to remove sludge from crude collecting inside the pipeline. The pigging exercise along the whole length of the pipeline is a continuous activity undertaken by TAZAMA.

3.2.6 Cathodic Protection Stations (CPS)

In order to protect the pipeline from corrosion, 45 cathodic protection stations (CPS) are installed on the pipeline with 33 in Tanzania and 12 on the Zambian side. At each CPS, impressed current is supplied to the pipeline through numerous magnesium anodes and regularly monitored by TAZAMA Pipeline Ltd. Pipe-to-soil Potential (PSP) measurements and monitoring is done to determine the protection levels against external corrosions.

Currently the pipeline has a number of challenges attributed to the state of the SPM, sections of the pipeline and age of the engines at pump stations. These challenges have compromised the pipeline reliability.

3.3 Indeni Petroleum Refinery

The INDENI Petroleum Refinery wholly owned by the Government of the Republic of Zambia situated in Ndola, is a 20,000 barrels per day (bbd) simple hydro skimming refinery. The design capacity of the

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refinery is 1.1 million metric tonnes per annum. In 2010, the refinery processed 583,384.87 Metric tonnes which translates to 56.8% capacity utilization. In the past two years, the capacity utilization of the refinery has increased by 3.5% from 53.3% achieved in 2008. This increase is attributed to steady supply of feed stock, utility supplies and plant equipment availability. Consequently, there has been a reduction in the number of unplanned shutdowns. For instance in 2010, the refinery was in full operation for a total 295.7 days having shut down for 69.3 days. This is in comparison to 241 days of operation and 124 days of shutdown in 2008.

The refinery is currently semi automated posing shortcomings in operation. For example in 2010, the total consumption and losses were 8.93% compared to the design value of 7.0%. However, in an effort to improve the status quo, INDENI commenced the replacement of instrumentation in 2010 and has since completed the installation of a Distributed Control System (DCS) for part of the plant. Replacement of coils for all the 7 furnaces has also been done.

In its current configuration, the refinery is still unable to produce Low Sulphur Gas Oil (LSGO) with sulphur content of 0.05% or 500 ppm and 95 octane petrol. This therefore means that Zambia imports all its LSGO to meet the requirements of specific industries such as the mines as well as latest motor vehicle models demanded by Original Equipment Manufacturers (OEMS). In order for INDENI to produce LSGO, installation of a desulphurising unit would be required. Installation of an isomeriser would also be necessary to facilitate production of high octane petrol.

Indeni Petroleum Refinery

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2 x 4.2 million litres low sulphur gas oil fixed roof tank1 x 2.4 million litres low sulphur gas oil fixed roof tank1 x 2.4 million litres kerosene fixed roof tank1 x 40 million litres automotive gas oil

By end of December 2009, TAZAMA had produced a five (05) year plan to refurbish and modernise the fuel terminal. Some of the planned works included the following: rehabilitation of 3 tanks, modernisation of the gantries, installation of modern meters, and addressing safety, fire and environmental concerns.

Refurbishment of the 3 tanks (1 diesel and 2 unleaded petrol) and a custody transfer meter for refined products between Indeni and NFT have since been completed.

However, modernization of the gantries, installation of modern meters, and addressing the general safety, fire and environmental concerns at the Terminal are still outstanding. Therefore, the general status of infrastructure at the facility was still in poor state.

3.5 Transportation

In the Zambia, , the means of conveying petroleum products across the country is by road and rail. By comparison, rail transport is by far the cheaper option at an estimated cost of US$83 to convey one metric tonne (MT) of finished product from Dar-es-Salaam to Ndola against US$180 for road transportation. However, due to poor state of rail infrastructure, rail transportation in Zambia is extremely unreliable and therefore not widely used. The state of infrastructure in the two areas of petroleum products transportation is described below:

3.5.1 Road Transportation

Road transportation is the main means of conveying petroleum products across the country. Though commonly used, this means of conveyance is expensive and has a number of challenges. One of the major challenges is the state of the roads in most parts of the country especially in outlying areas. Roads in most outlying areas are untarred and receive inadequate maintenance. The state of these roads has a direct impact on product delivery time and public safety. In addition, the state of the roads affects the condition of fuels tankers used in the conveyance of petroleum products. It actually contributes to increase in breakdowns and maintenance schedules of fuel tankers.

By the end of December 2009, 62 transporters were licensed with the ERB with a total of 342 certified tankers. However, during the 2010 annual tanker inspection/certification conducted by the ERB in collaboration with Zambia Bureau of Standards (ZABS), 326 tankers for 51 transporters were inspected from both the Copperbelt and Lusaka. Out of a total of 326 tankers inspected, 321 passed and 5 failed representing 98.5% compliance.

The inspection reports showed that the common areas of non conformity for failed tankers include the following:

Earth leaks arising from poor status of electrical wiring,Lack of appropriate markings i.e. (Hazchem signs, No smoking, Diamond sign, No naked flame and side reflector)Inadequate or non functional fire extinguishers,Lack of retractable hand rails and product colour tagging,Unsecured document holders and in some cases painted in wrong colourAbsence of Endurance Braking System and Anti Lock Braking System (only four tankers complied for both the horse and the trailer)Absence of a documented quality and maintenance systems.

25

During the course of 2010, 38 tankers were licensed as either new applications or inclusions. This brought the total number of certified tankers to 359 by December 2010 and this represents an increase of 11.8%. However, the total number of transporters and tankers licensed with the ERB in 2010 were 84 and 408 respectively. Details for each transporter are as shown in Appendix 2.

3.5.2 Rail transportation

Despite the low cost associated with rail transportation, this mode has not been widely used for conveying petroleum products in Zambia. Infact, only BP (Z) Plc was using this means of transportation as by December 2010. This is due to the poor state of rail infrastructure and delays in wagon movements between Lusaka and the Copperbelt. However, in order to provide guidance to this mode of transportation of petroleum products, the ERB in collaboration with ZABS and other stakeholders are in the process of promulgating a Zambian Standard which will cover the requirements for transportation by rail, at temperatures below their boiling point, of petroleum-based flammable liquids.

Upon completion of the standard, the ERB will embark on the process of developing a Licensing procedure for this mode of transporting petroleum products. Considering the level of specialisation of the expertise needed to regulate this activity, the ERB is of the view that collaboration with the Inspectorate of Rail Transport at the Ministry of Communication and Transport would be absolutely important in implementation and enforcing standards related to rail transport.

3.6 Bulk Storage Facilities (Depots)

The main forms of bulk storage facilities are Oil Marketing Company (OMC) owned depots, Government depots and some consumer sites. These are discussed below;

3.6.1 OMC owned depots

As at December 2010, 32 Companies had Distribution Licenses as issued by the ERB in accordance with the provisions of the Energy Regulation Act Cap 436 of the Laws of Zambia (Refer to attached list in Appendix 3). This showed an increase of 18.8% in the number of OMCs compared to the 26 licensed in 2009.

In order for a company to qualify for a distribution license, one of the prerequisites is a minimum of 250,000 litres of bulk storage facility that complies with all the relevant petroleum infrastructure standards. OMCs without own depots have in the interim sought hospitality arrangement with Ndola Fuel Terminal or other OMCs that have excess storage space (ullage).

By the end of 2009, 11 out of the 26 licensed OMCs had their own bulk fuel storage depots with total 3 3storage capacities per specific products as follows; unleaded petrol 11,795 m , diesel 21,566m and

3 3kerosene 1,942m . The combined storage was 35,303 m . In 2010, two (2) depots for Mount Meru Petroleum Zambia Ltd in Lusaka and Oryx Oil Zambia Ltd in Ndola were commissioned. This brought

3 3the total storage capacities per specific products to 11,965 m for unleaded petrol, 23,316 m diesel 3 3and 2,112m kerosene respectively. Therefore, the combine storage was 37,393m representing an

increase of 5.9%.

26

As at December 2010, the amount of available OMC storage was as shown in Table 2 below.

TABLE 2 : AVAILABLE STORAGE CAPACITY BY OMC

In 2010, the level of compliance with the relevant technical standards for most of these depots was generally acceptable. However, there were isolated cases of non compliance with common areas of non conformity being poor spillage containment (non concrete paved bunded areas), lack of drainage and lack of/or poor paving of the depot surface.

3.6.2 Government owned depots

Over 7.01 million litres in storage capacity exists among Government fuel depots, which are dotted around the country. The status of these facilities varies from a usable state such as the one in Chipata to those that need major rehabilitation before use such as the one in Choma. These facilities, if rehabilitated could provide the much needed capacity for storage of strategic reserves and thereby contribute to the security of supply of petroleum products. In addition, this could help in the implementation of the recently government introduced Uniform Pump Pricing (UPP) mechanism. Therefore, in 2010 government put up plans to rehabilitate these facilities starting with the Lusaka bulk storage facility along Buyantanshi road.

27

Government Bulk Storage tanks in Mongu.

�3�.�6�.�3�C�o�n�s�u�m�e�r� �s�i�t�e�s

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�T�h�e� �o�t�h�e�r� �c�o�n�s�u�m�e�r� �f�a�c�i�l�i�t�y� �a�u�d�i�t�e�d� �i�s� �o�n�e� �o�w�n�e�d� �b�y� �T�A�Z�A�R�A� �a�t� �t�h�e�i�r� �s�t�a�t�i�o�n� �i�n� �K�a�p�i�r�i� �M�p�o�s�h�i�.� �T�h�e� �f�a�c�i�l�i�t�y� �h�a�s� �a� �4�0�0�,�0�0�0� �l�i�t�r�e�s� �a�b�o�v�e�g�r�o�u�n�d� �t�a�n�k� �w�h�i�c�h� �i�s� �u�s�e�d� �f�o�r� �s�t�o�r�a�g�e� �o�f� �d�i�e�s�e�l�.� �T�h�e� �s�t�a�t�e� �o�f� �t�h�i�s� �f�a�c�i�l�i�t�y� �i�s� �b�o�t�h� �a� �s�a�f�e�t�y� �a�n�d� �e�n�v�i�r�o�n�m�e�n�t�a�l� �h�a�z�a�r�d� �a�s� �i�t� �d�o�e�s� �n�o�t� �c�o�m�p�l�y� �f�u�l�l�y� �w�i�t�h� �t�h�e� �t�e�c�h�n�i�c�a�l� �r�e�q�u�i�r�e�m�e�n�t�s� �a�s� �s�t�i�p�u�l�a�t�e�d� �t�h�e� �a�p�p�l�i�c�a�b�l�e� �Z�a�m�b�i�a�n� �s�t�a�n�d�a�r�d�s�.

�T�h�e� �a�r�e�a�s� �o�f� �c�o�n�c�e�r�n� �i�n�c�l�u�d�e�d� �t�h�e� �f�o�l�l�o�w�i�n�g�;

�A� �w�o�r�n�-�o�u�t� �b�u�n�d� �w�a�l�l�,� �t�h�e�r�e�b�y� �d�e�f�e�a�t�i�n�g� �i�t�s� �i�n�t�e�n�d�e�d� �p�u�r�p�o�s�e�.� �I�n� �a�d�d�i�t�i�o�n�,� �t�h�e� �a�r�e�a� �i�n�s�i�d�e� �t�h�e� �b�u�n�d� �w�a�l�l� �w�a�s� �n�o�t� �c�o�n�c�r�e�t�e� �l�i�n�e�d� �t�h�e�r�e�b�y� �p�o�s�i�n�g� �a� �t�h�r�e�a�t� �t�o� �t�h�e� �g�r�o�u�n�d� �w�a�t�e�r� �r�e�s�o�u�r�c�e�.�L�a�c�k� �o�f� �s�p�i�l�l�a�g�e� �c�o�n�t�a�i�n�m�e�n�t� �a�r�o�u�n�d� �t�h�e� �o�f�f�l�o�a�d�i�n�g� �p�o�i�n�t� �a�n�d� �o�t�h�e�r� �a�r�e�a�s� �r�e�s�u�l�t�i�n�g� �i�n� �s�o�i�l� �c�o�n�t�a�m�i�n�a�t�i�o�n�,�M�a�j�o�r� �c�r�a�c�k�s� �i�n� �t�h�e� �b�a�s�e� �o�f� �t�h�e� �t�a�n�k�,� �t�h�e�r�e�b�y� �c�o�m�p�r�o�m�i�s�i�n�g� �t�h�e� �s�t�a�b�i�l�i�t�y� �o�f� �t�h�e� �t�a�n�k�,� �P�o�o�r� �d�r�a�i�n�a�g�e� �s�y�s�t�e�m� �f�r�o�m� �r�i�s�k� �a�r�e�a�s� �t�o� �t�h�e� �o�i�l� �i�n�t�e�r�c�e�p�t�o�r�,

28

�L�a�c�k� �o�f� �f�i�r�e� �p�r�o�t�e�c�t�i�o�n� �c�o�v�e�r� �b�o�t�h� �a�r�o�u�n�d� �t�h�e� �o�f�f�l�o�a�d�i�n�g� �p�o�i�n�t� �a�n�d� �t�h�e� �t�a�n�k�,�L�a�c�k� �o�f� �s�y�m�b�o�l�i�c� �w�a�r�n�i�n�g� �s�i�g�n�s� �a�n�d� �2�4� �h�o�u�r� �e�m�e�r�g�e�n�c�y� �c�o�n�t�a�c�t� �n�u�m�b�e�r�s� �o�n� �t�h�e� �s�i�t�e�,

400,000 litre tank with no concrete lining inside the bund area

Poor spillage containment around the offloading point

29

3.7 Retail Sites

Two categories of retail sites are hereby discussed namely; Conventional and Rural filling stations. The detailed geographical distribution of the retail outlets is attached in Appendix 4. By end of December 2010, the total number of operational retail sites was 220 while 20 were non-operational.

3.7.1 Conventional Retail Sites

One of the conditions for the Retail Licence is that the operational site should comply with the Zambian Standard ZS 385 Part 3: The installation of underground storage tanks, pumps/dispensers and pipe work at service stations and consumer installations.

In line with the 2008-2010 ERB Strategic and Business Plan, the ERB conducted inspections of all retail sites along the line of rail and all provincial centre's. The findings were then evaluated and summary of compliance per OMC was as presented in Table 3 below:

Table 3: Weighted average level compliance for retail outlets owned by OMCs in towns along the line of rail and province centres

�T�h�e� �m�o�s�t� �c�o�m�m�o�n� �a�r�e�a�s� �o�f� �n�o�n� �c�o�m�p�l�i�a�n�c�e� �i�n�c�l�u�d�e�d� �t�h�e� �f�o�l�l�o�w�i�n�g�:�A�b�s�e�n�c�e� �o�f� �l�e�a�k� �d�e�t�e�c�t�i�o�n� �m�e�c�h�a�n�i�s�m�,�F�a�u�l�t�y�/�n�o� �p�r�e�s�e�t�s� �m�e�c�h�a�n�i�s�m� �i�n�s�t�a�l�l�e�d�,�F�a�d�e�d� �p�r�o�d�u�c�t� �c�o�l�o�u�r� �c�o�d�i�n�g�,�P�o�o�r� �s�t�a�t�e� �o�f� �f�o�r�e�c�o�u�r�t�s� �a�n�d� �d�r�i�v�e�w�a�y�s�,�P�r�i�c�e� �d�i�s�p�l�a�y�s� �n�o�t� �i�n� �l�i�n�e� �w�i�t�h� �t�h�e� �E�R�B� �d�i�r�e�c�t�i�v�e�,� �e�s�p�e�c�i�a�l�l�y� �f�o�r� �m�o�s�t� �C�h�e�v�r�o�n� �(�Z�)� �f�i�l�l�i�n�g� �s�t�a�t�i�o�n�s�,

30

Absence or poor management of forecourt drainage systems, Absence of oil interceptor system and/or lack of sampling provision on the oil interceptor,Inadequately protected pumps/no crash barriers,Non-availability of functional compressors, pressure gauges and tyre inflators.

As at December 2010, the weighted overall average level of compliance for all sites in towns along the line of rail and provincial centres was 85.5% against 73% compliance of 2009. This represented an increase of 12.5 %. Despite a few sites having attained 100% compliance, none of the OMCs attained full compliance for all their respective stations. Only ten (10) OMCs namely; Pegasus, Kobil, Odys Oil, Petrotech Oil, Samfuel, SGC, Mount Meru, Suban, Spectra and Petroda attained acceptable

thcompliance of at least 85% as stipulated in the 4 ERB Strategic and Business Plan.

It must also be noted that though a good number of sites were above 85% compliance target, some of the stations were unfortunately found lacking on matters relating to safety, environment and ERB directives and enforcement action was recommended. Chevron (Z) Ltd sites generally continued to score poorly with regards to state of infrastructure, safety and environment and provision of ancillary services.

3.7.2 Rural Filling Station

In an effort to improve availability of petroleum products in fuel deficit areas, the ERB completed the guidelines aimed at encouraging the setting up of retail sites (Rural Filling Stations) in these areas following the promulgation of ZS 703: 2007- Rural Filling Station: Coded of Practice. The standard defines a rural filling station as one that provides fuel and lubricants for sale with a combined monthly average fuel throughput not exceeding 30,000 litres and located 50Km from an existing and operational station. The standard attempts to reduce start-up costs without compromising safety, health, environment and quality as an investment incentive. This is also in response to concerns from some local entrepreneurs and OMCs who have stated that lofty standard requirements for a modern station were prohibitive for areas where sales turnover was not enough to guarantee a decent return on investment.

Since the promulgation of the standard and the development of technical and licensing guidelines, the ERB has been sensitizing various stakeholders about the requirements for setting up rural filling stations. In 2009, the Citizen Economic Empowerment Commission (CEEC) began to consider the possibility of funding some rural filling station projects.

During the course of 2010, the ERB participated in the technical evaluation of twenty one (21) projects proposals submitted to the CEEC for construction and operation of rural filling stations in fuel deficit areas as follows; four (4) in Sinazongwe and Namwala, three (3) in Mwinilunga, two (2) each in Chinsali and Shang'ombo, one (1) each in Kalabo, Luwingu, Kabompo, Itezhi Tezhi, Chanida-Chadiza and Zambezi. However, approval for financing of any of the submitted projects remains the mandate of CEEC. It is worth noting that by the end of December 2010, no final decision was made for any of the projects.

3.8 Liquefied Petroleum Gas (LP Gas) Storage and Filling Facilities

In the National Energy Policy (NEP) of 2008, the government seeks to promote the domestic use of LP Gas in Zambia as an alternative source of energy to electricity and woodfuel. This is in view of the power deficit being experienced in the country and also as a way of helping in forest conservation. However, by the end of 2010 the local consumption for LP Gas was still low and a large proportion of the gas, particularly butane, produced by the refinery was being exported to East Africa and Zimbabwe. In an effort to implement this government policy directive of promoting the domestic use of LP Gas,the ERB and other stakeholders embarked on the development of LP Gas regulatory framework. This framework will outline the technical and licensing guidelines among other things.

31

During the course of 2010, the local LP Gas market was being supplied by four (4) entities namely Afrox Zambia Limited, Oxyzam Limited, Industrial Gases Limited and Total Zambia Limited. Of the four, only Afrox, Oxyzam and Industrial Gases owned LP Gas storage and filling facilities and engaged in the supply of LP Gas cylinders for both domestic and industrial purposes.

Most of the LP Gas supplied to the Zambian Market is produced by INDENI. The total available storage capacity for LP Gas and Commercial Butane at INDENI is 960 MT. This serves as operational storage for the refinery. Therefore, by the end of 2010, the country had no marketing storage for LP Gas. The only available storage was 40 tonnes and 20 tonnes at Afrox and Oxyzam in Lusaka respectively and 10 tonnes at Industrial Gases in Kitwe. However, in 2010, Oryx Oil Zambia Limited and African Natural Gases Limited commenced construction of 20 metric tonnes and 50 metric tonnes LP Gas storage and distribution facilities in Ndola and Lusaka, respectively.

3.9 Infrastructure Developments in the Petroleum Sub-Sector

3.9.1 Petroleum infrastructure under construction

During the course of 2010, 11 retail sites”- 4 in Lusaka,, 3 in Northern Province, 3 in the Copperbelt and 1 in North Western province were under construction.

3.9.2 Proposed petroleum infrastructure approved in 2010

During the course of 2010, petroleum infrastructure projects involving the construction and operation of the following facilities went through the Environmental Impact Assessment (EIA) process:

i. 37 retail sitesii. 14 consumer sitesiii. 1 LP Gas storage and distribution facilityiv. 2 bulk storage

3.10 Major Incidents in the Petroleum Sub Sector

During the course of 2010, a number of incidents were experienced in the petroleum industry. These included accidents involving fuel tankers, and a fire incident at a retail site.

Four (4) road accidents involving fuel tankers belonging to Mohab Transport, Kalima Transport, Tiger Transport and Petrotech Oil Corporation were reported and investigated. These accidents ranged from fatal, serious and minor injuries. In some cases the accidents caused pollution to the environment as a result of oil spills. The causes of the accidents were attributed to mechanical failure of tankers and driver's fatigue and vision impairment resulting from transportation of fuel between 18:00 and 06:00 hours contrary with the provisions of applicable standards.

One fire incident at Petrotech service station in Kabwe was reported and investigated. The Petrotech incident was a fire from the vent pipes during offloading of petrol from a tanker. The cause of the fire was lack of adherence to standard offloading procedures by the driver and service station staff.

3.11 Challenges and Prospects in the Petroleum Sub Sector

In 2010, the state of infrastructure in the petroleum supply chain was found to have numerous shortcomings. This is as indicated in the sections of the report covering the various components of the petroleum supply chain.

Considering the state of key infrastructure such as the SPM, Tazama Pipeline and Indeni Petroleum Refinery, efforts should be directed towards investment in recapitalization and upgrading of the infrastructure. One way of achieving this would be through adequate Cost Reflective Pumping Tariffs and refining fees to cover repayments for investments and consequently contribute to ensuring security of supply for petroleum products.

32

Efforts should also be directed towards investment in upgrading the railway systems through initiatives such as private public partnership (PPP) for more cost effective transportation of finished products into and around the country. This would improve the flow of petroleum products in the country. If exploited, rail transportation could help reduce pump prices for petroleum products. This is because the cost of transportation by rail is cheaper compared to the widely used road tank vehicles which are not only expensive but also a major safety concern to other road users particularly in light of the fact that the total national tanker fleet has significantly increased.

In developing the LP Gas regulatory framework, it was identified that the available LP Gas storage and filling facilities, and cylinders are inadequate to successfully promote extensive use of LP Gas. In addition, it was also recognized that the high cost of equipment, appliances, cylinders and accessories contributed to the low usage of LP Gas locally. Therefore, in order for the country to successfully promote extensive use of LP Gas at household level, one of the interventions required is the establishment of additional storage to cater for envisaged growth in demand on the local market. Further, LP Gas industry players should also be encouraged to establish their own storage and filling facilities or through private public partnerships. Further, tax incentives should be provided for the importation of LP Gas equipment, appliances, cylinders and accessories.

33

4.0 CONCLUSION

Generally, the state of infrastructure in the energy sector has a number of shortcomings. However, it is evident that with investment, equipment recapitalization and continuous compliance monitoring, the status quo has improved and will continue to improve greatly.

Appendix 1: Electricity bulk Supply stations - Maximum Demand and Installed Capacity

Includes part of Mkushi load4

34

Conclusion

4

Appendix 2: FUEL TRANSPORTERS DATA BASE

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Appendix 3: LIST OF OIL MARKETING

1. Amchile Import & Export2. Anegi Oils Limited3. Afrox Zambia Limited4. Agro-fuel5. B.P Zambia Plc6. Chevron Zambia Ltd7. Continental Oil Company Ltd8. Dalbit Petroleum Zambia Ltd9. Engen Petroleum Zambia Ltd10. Eyethu petroleum Zambia Ltd11. Gulf Oil Zambia Ltd12. Kobil Zambia Ltd13. Odys Oil Zambia Ltd14. Pegasus Energy & Associates15. Petroda Zambia Ltd16. Petrotech Oil Corporation17. Spectra Oil Zambia Ltd18. Suban Petroleum19. SGC Investment Ltd20. Total Zambia Ltd21. MAG Petroleum Limited22. Mount Meru Petroleum (Z) Ltd23. Ngucha Energy (Z) Ltd24. Spring Energy Corporation25. Oryx Oil Zambia Ltd26. Oasis Oil Zambia Ltd27. Oxyzam Limited28. Samfuel Limited29. Colas Zambia Limited30. Lake Petroleum31. Star Oil32. Puma Energy

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Appendix 4: GEOGRAPHIC LOCATIONS OF SERVICE STATIONS

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