Oryx Energies invests in Zanzibar LPG supply and distribution

15 September 2023

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 LPG (liquefied petroleum gas) supply and distribution to the archipelago.

The move centres on 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.

At the same time, Oryx Gas Zanzibar Limited is acquiring 100% of 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% stake in Oryx Gas Zanzibar Limited. This transaction has unique characteristics, highlighting the commitment of Oryx Energies as a group to support local initiatives and the development of local partnerships.

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.

Legend from left to right: Toufiq Salim Turky (Chairman of Vigor Group), Benoit Araman (Managing Director of Oryx Gas Tanzania Limited), Shuwekha Omar Khamis (General Manager of Oryx Gas Zanzibar Limited), Abdalla Salim Turky (CEO of Vigor Group).

Shuwekha Khamis, General Manager of Oryx Gas Zanzibar Limited, commented: “This collaborative development with a major local business underlines our wide-ranging 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.”

Benoit Araman, Managing Director of Oryx Gas Tanzania Limited, added: “We have long been laying down the foundations for this 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.”

Abdallah Salim Turky, CEO of Vigor Group, said: “The creation of the new LPG terminal fits perfectly with our vision to be a local pioneer in offering top-notch products and services from the international markets to the general public at prices they can 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.”

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