The Ethiopian Petroleum Supply Enterprise (EPSE) will soon float an open international tender inviting oil trading companies for the supply of fuel to be delivered in 2019. EPSE estimates that the country would need 2,780,000 metric tons of gasoil, 840,000 metric tons of jet-fuel, 494,000 metric tons of gasoline and 83,000 metric tons of fuel oil. The country’s total annual fuel demand in 2019 is estimated at 4,197,000 metric tons valued at 2.8 up to three billion dollars.
Based on the agreements the Ethiopian government signed with the governments of Kuwait and Sudan a few years ago a significant amount of fuel is purchased from the state owned national oil companies of the two countries without a tender. Tadesse Hailemariam CEO of EPSE told The Reporter that 50 percent of the gasoil and 100 percent of the jet fuel would be supplied by the Kuwait Petroleum Corporation (KPC). Fifty percent of the gasoil would be purchased from oil trading companies through the open international tender which EPSE would put up in end of September.
Ethiopia and the United Arab Emirates (UAE) have agreed to build an oil pipeline between Eritrea’s port city of Assab and Addis Ababa. This was revealed today during a meeting between Prime Minister Dr Abiy Ahmed and Reem Al Hashimy, UAE’s Minister of State for International Cooperation. During the meeting, the two sides also discussed ways to implement previously concluded investment agreements, which among others, include development of real estate and resorts, according to Fitusm Arega, Chief of Staff at the Prime Minister’s Office.
The two countries also agreed to conduct a study to build an oil pipeline between the port of Assab and Ethiopia, Fitusm, who attended the meeting, said. After the discussion, Reem Al Hashimy told Fana Broadcasting Corporation (FBC) that the UAE is keen to exploit the investment opportunities available in Ethiopia. The peace deal reached between Ethiopia and Eritrea is a good opportunity for the UAE to invest in Ethiopia, she added.
Fairfax Africa Fund, a US-based investment firm, in collaboration with multiple partners from Asian countries is planning to build an oil refinery in Ethiopia with a total investment cost of four billion US dollars.