Indeni Energy Company Limited has set its sights on venturing into the retail petroleum market by establishing filling stations across the nation. The move comes as a strategic shift after the company’s transformation from a refinery to an Oil Marketing Company (OMC).
During a recent tour of Indeni facilities by IDC CEO Mr. Cornwell Muleya, Indeni Energy Managing Director, Mr. Evans Mauta, unveiled ambitious plans requiring an estimated investment of US$20 million to establish a retail presence in all 10 provinces. An additional US$7 million is earmarked to upgrade Indeni for full depot operations, aligning with Energy Regulation Board (ERB) standards—a necessity for handling various products in accordance with regulatory compliance.
Formerly known as Indeni Petroleum Refinery, the company’s evolution into an OMC was necessitated by Governmental reforms within the petroleum subsector. With the government’s withdrawal from fuel trading and the conversion of the TAZAMA crude oil pipeline into a finished product pipeline, Indeni’s infrastructure was redirected towards its new business model. The company, rebranded as Indeni Energy Company Limited and officially launched on 11th October 2022, received ERB’s OMC licensing in the fourth quarter of 2022.
Mr. Mauta outlined the multifaceted nature of Indeni Energy’s future endevours, including bulk importation, marketing, distribution of fuel, depot management, biofuel blending, and laboratory services for other OMCs.
Addressing Indeni Management, Mr Muleya emphasized the company’s strategic role of ensuring strategic fuel reserves, which will be important in stabilizing prices, particularly during fluctuating exchange rates.
Mr Muleya urged Indeni Energy to strategize not only around current facilities but also potential expansions to ensure a robust supply chain. He commended Indeni Energy for its vision to become a center of excellence in laboratory services, highlighting its potential role in training young professionals seeking specialization in the industry.
“The second role which I believe is critical to your services is the question of having strategic reserves which assure us supply of the product to the country and the region by a robust business plan and strategy that not only capitalizes on the facilities you currently have, but others which you could plan for not only here but also at the receiving side in Dar-es-Salaam and other points,” he said.
The shift from refining to retail marks a significant evolution for Indeni Energy, symbolizing its adaptation to market changes and a commitment to meeting both national and regional fuel demands.