June 29 (Bloomberg) -- Mauritius’s State Trading Corp. plans to invest more than $200 million in a new oil terminal to build the country’s reserves and service both the region and maritime traffic, Chief Executive Officer Megh Pillay said.
“Our current reserve for gasoline, for example, is merely one week’s demand between two shipments,” Pillay said by phone yesterday. “The government does not want to see a piecemeal approach to such investments.”
The Indian Ocean island nation, with a population of 1.3 million people, will need 1.23 million metric tons of petroleum products, including 270,000 tons of jet fuel and 460,000 tons of fuel oils in the year through July. It consumes an average of 65,000 tons of liquefied petroleum gas annually, the STC, which also imports cement and rice, said on its website.
The initial phase of the project, approved by the government, will require investment of about $45 million, Pillay said. Two hectares of land (four acres) have been secured for the terminal near the harbor in the capital, Port Louis, close to the new oil jetty.
“Mauritius remains the major consumer and buyer of fossil fuels and LPG in the region,” Pillay said. “It thus can influences final price by achieving economies of scale in freight, which represents a major cost component.”
The Port Louis-based STC issued an international tender on June 27 for expressions of interest by companies to advise on a plan to address “basic strategic and operational requirements and take advantage of trade opportunities,” Pillay said. The open bidding process will close on July 25.
The STC has a three-year agreement with India’s Mangalore Refinery and Petrochemicals Ltd. for its fuel requirements, expiring in July 2013.
--Editors: Ana Monteiro, Philip Sanders
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