Indeni Energy in need of $250m to finance operations
By Masauso Mkwayaya
Government says Indeni Energy will play a crucial role in ensuring availability of adequate petroleum stocks in the country and managing strategic reserves once fully recapitalized.
Energy Minister MAKOZO CHIKOTE says Indeni Energy requires approximately 250 million U.S Dollars to become fully operational.
He says this comprises 100 million dollars in working capital for fuel procurement and 150 million for capital expenditure, which includes establishing an ethanol distillery and a loading gantry to enhance fuel distribution.
Mr CHIKOTE says Indeni Energy underwent a policy reform in 2022 to transition from a refinery into an Oil Marketing Company -OMC.
He says following the transformation, Indeni Energy has been awarded a contract to supply 35,000 metric tonnes of low sulfur gas oil to the Zambian market under the TAZAMA Pipeline Open Access System.
The Energy Minister says Indeni Energy plans to establish fuel service stations across Zambia to support its new business model.
He says the company will also establish a bio-ethanol refinery that will create jobs and also provide opportunities for out-grower farmers producing biofuel crops such as sugarcane, cassava, and sorghum.
This is according to a statement issued to ZNBC News by Ministry of Energy Principal Public Relations Officer BOB SIANJALIKA.
