Oil Storage Projects Africa's Soaring Energy Demand Creates Big Opportunities in Oil Storage Projects
The East African Community (EAC) hopes to invest around $1.5 billion to build 1,454 kilometers of intraregional and domestic pipelines over the next few years. The longest pipeline will be the 784 kilometer route through Kenya – Uganda – Rwanda, which should significantly bolster fuel trade between the three countries.
Nairobi/Kenya – East Africa must react quickly to satisfy the demand of its thriving middle-class. Such households in eleven sub-Saharan African countries - including Tanzania, Kenya and Uganda - are expected to more than double from 15 mn people to over 40 mn by 2030, according to Standard Bank’s 2014 research. The subsequent appetite for oil products is vast, with a large portion earmarked to powering personal cars on newly paved roads. Most of the LPG demand will be soaked up for cooking to support the rapidly growing populations in Africa’s cities, which will also help boost the region’s green credentials.
Robust growth, wherever it is, always attracts global investors’ attention. The time is right to explore African assets, but only the strongest players will survive in what is an increasingly competitive space. Tanzania, Kenya and Uganda are spearheading East Africa’s economic prowess, with the eastern region as a whole growing by 7.1 per cent in 2014, with 5.6 per cent and 6.7 per cent growth forecast for 2015 and 2016, respectively.