Engens new 24,000 cubic meter depot will supply lubricants, petrol and diesel to the companys main hubs in Mozambique and elsewhere in Southern Africa.
The depot is meant to serve as a platform for Engens future market targets and to establish another supply center in Southern Africa. As Managing Director of Engen Mozambique Teodomiro Sarmento said in a recent press release, Having sufficient capacity in the region will reduce our dependency on third parties, lessen our cost of supply through pipeline, and improve efficiencies.
In 1996, South Africa-based Engen formed its Mozambique subsidiary, which operates lubricants warehouses in Maputo, Beira and Tete.
Since 2011, Engen has acquired several of Chevrons assets in Mozambique. In 2012, a 2 million-liter depot at the Rio Tinto Benga coal mine was built, and a 500,000-liter bulk lubricants facility at Vale Moatize coal mine opened the following year.
In the future, the company plans to expand in other parts of Mozambique, particularly Nacala and Pemba. Sarmento said Engen plans further future investments to increase the depot capacity in Mozambique in line with market demand.