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Work on 150 million USD new fuel depot progressing

Work on 150 million USD new fuel depot progressing

The Ethiopian Petroleum Supply Enterprise (EPSE) disclosed that the design work on the new modern fuel depot is well under way.

EPSE is in the process to build a state-of-the-art fuel depot in Dukem town, 42 km east of Addis Ababa, at a cost of USD 150 million. The enterprise secured 10,000 sq. m of land (10 hectares) from the Oromia Regional State for the construction of the largest depot in the country. 

Last June, EPSE awarded the design, supervision and commissioning of the fuel depot project to an Australian company called SMEC. Executives of SMEC and its parent company, SurbunaJurong (SJ), on Thursday presented the draft engineering design of the fuel depot to officials of EPSE, Ministry of Mines and Petroleum, Ministry of Trade and private oil companies at Ramada Addis Hotel.

Barnabas Wong, project manager, said that tank farm which will have 12 storage tankers will have the capacity to store 300,000 cu.m(300 million liters) of fuel, the biggest storage capacity in Ethiopia. Wong said the fuel depot can unload fuel from railway wagons and fuel tanker trucks. “Due attention is given to safety and environmental protection,” he said. Modern firefighting system and control and monitoring room are included in the design, among many other facilities. 

SMEC will undertake engineering design, topographical survey, soil investigation, preparation of tender document, and tender evaluation work. SMEC will be paid USD7.7 million for the job. According to Wong, the engineering design work will be completed after three month.  

TadesseHailemariam, CEO of EPSE, said that the enterprise is happy with the work SMEC has done so far. “Now we want stakeholders to comment on the draft design,” he said.

Tadesse said the enterprise first planned to build a fuel depot with 240,000 cu.m(240 million liters)fuelstorage capacity, but SMEC convinced the enterprise that the storage capacity can be increased to 300,000cu.m by utilising the land efficiently. Each fuel tanker 21 meters high can store 25000 cu. m of fuel. Of the 12 fuel tankers,the 8 will be used to store gas oil (diesel), the 2 gasoline (benzene) and the other 2 jet fuel. This is the first time that EPSE is going to build a jet fuel depot. The enterprise did not build a jet fuel depot in the past due to the sensitive nature of the product.  

The fuel depot can accommodate 40 train wagons or 20 fuel tanker trucks at a time. “Twenty trucks can load within an hour or ten trucks can unload within an hour,” Tadesse said. 

EPSE has 13 fuel depots in different parts of the country with a total storage capacity of 367,000cu.m of fuel, the largest being Awash depot which has the capacity to store 130,000 cu.m of fuel. “So we are building the biggest and the most sophisticated fuel depot in the country,” Tadesse said.

Tadessealso told The Reporter that once the detail engineering design work is completed, the enterprise will put up an international tender to hire a contractor in the next budget year. The project could take three and half years to be completed. 

When the project is completed the country’s total oil storage capacity will increase to 667,000cu.m. The existing depots have the capacity to store 367,000cu.m of petroleum products, covering the country’s fuel demand for 35 days. The new depot terminal will boost the total storage capacity to 667,000cu.m which will cover the country’s demand for 65 days.