Oryx invests in Zanzibar LPG supply and distribution

Unguja. Oryx Gas Zanzibar Limited has teamed up with Zanzibar-based TP Company Limited, a subsidiary of the Vigor Turky’s Group of Companies (Vigor Group), to strengthen liquefied petroleum gas supply and distribution in the isles.

The move aims at the creation of the islands’ first LPG terminal. It forms part of Oryx Energies group’s wider commitment to the energy transition agenda, which involves securing provision of LPG to African markets and specifically to Tanzania and the Zanzibar archipelago.

In a two-part deal, TP Company Limited is building with the assistance of Oryx Energies, Zanzibar’s first-ever LPG terminal facility, with a capacity of 1,300 MT.

Scheduled for completion in the fourth quarter of 2023, the new terminal will be operated exclusively by Oryx Gas Zanzibar Limited on a long-term basis, thereby ensuring a dedicated and enduring partnership.

According to Oryx Gas Tanzania Limited managing director Benoit Araman they have long been laying down the foundations for the expansion, having delivered LPG to the Zanzibar archipelago from Tanzania since 2010.

“ This collaboration marks an important step-up, further strengthening the supply of LPG in Zanzibar,” said Araman.

On his part, Abdallah Salim Turky, the CEO of Vigor Group, said the creation of the new LPG terminal fits perfectly within their vision to be a local pioneer in offering top-notch products and services from the international markets to the general public at prices that are afford.

“It will help improve standards of health and welfare in Zanzibar and will also help protect the environment by providing a safe and reliable alternative to charcoal and wood.” He added: “To achieve this, we are delighted to enter into partnership with Oryx Gas Zanzibar Limited. The company and its teams have established themselves as a well-recognised player on the retail trade market,” said Mr Turky

In another development, Oryx Gas Zanzibar Limited is set to acquiring the LPG business assets of TP Company Limited, currently branded and operated under the name VGas.

These assets will be progressively rebranded to Oryx Energies. In return, TP Company Limited is taking a 30 percent stake in Oryx Gas Zanzibar Limited.

As the operating company of the new LPG terminal, Oryx Gas Zanzibar Limited will supply other customers as well, thereby helping to ensure a reliable, sustainable and seamless supply of LPG to the Zanzibari population.

The move also addresses the historically complicated nature of local LPG supply, whereby multiple handling procedures have driven up costs for Zanzibarians and often led to bottlenecks.

Commenting on the new development Oryx Gas Zanzibar Limited general manager Shuwekha Khamis, said collaboration with a major local business underlines their wide-range of commitment to give the local population access to cleaner energy sources.

“LPG plays a major role in Zanzibar’s energy mix, ensuring all-important energy security for cooking as well as supporting the development of the local tourism sector,” said Ms Khamis