OiLibya to provide ethanol blended fuel to Ethiopia
- Tuesday, October 6, 2009, 12:54
- General News
- 6 comments
ADDIS ABABA — OiLibya agreed with Ministry of Mines and Energy (MoME) to become the second provider of ethanol blended fuel in the country.
Ethiopia started blending benzene with 5 percent ethanol at the beginning of last summer. The Sudanese biggest oil company Nile Petroleum Plc, was previously the only company authorized by the government to blend fuels, selling this on to other retailers.
However, fuel shortages have been occurring due to the limited blending capacity of Nile Petroleum, leading the Ministry to negotiate with the country’s other oil companies.
National Oil Corporation (NOC) and Yetebaberut Oil Company are currently examining the Ministry’s request; however OiLibya has already consented to blend the fuel in some of its depots.
The country’s five oil companies have been supplying benzene to Nile Petroleum and the latter has been providing them the blended fuel for almost a year; however beginning this week Nile has stopped blending the fuels due to a shortage of ethanol.
Fincha Sugar Factory, which has an annual production capacity of 8 million liters of ethanol, has been the only supplier to Nile However the factory is now under maintenance.
The ministry’s move to increase numbers of the blending companies is expected to coincide with a significant raise in the amount of ethanol produced by new factories currently in expansion.
At present, all the existing sugar factories are undergoing expansion programs for ethanol production. The country’s annual production capacity is thus expected to reach 43 million litres.
6 Comments on “OiLibya to provide ethanol blended fuel to Ethiopia”
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