Trafigura to invest in upgrading Somaliland’s Berbera oil terminal

Singapore-based commodities trader Trafigura Group has delivered the first shipment of low sulphur gasoil to the Port of Berbera.

The shipment follows the signing of a storage agreement with the Government of Somaliland’s Ministry of Trade, Industry and Tourism earlier this year.

Trafigura noted that the latest move is the first step in Trafigura’s commitment to invest in Berbera oil terminal facilities to position it as a regional supply hub serving customers within Somaliland.

The investment is also part of Trafigura’s efforts to integrate oil logistics across the Horn of Africa.

Trade Industry and Tourism Minister Mohamoud Hassan Saad said: “We’re delighted to be working with a leading independent, international company like Trafigura to improve the quality and reliability of refined petroleum product supply into the country.

“By working with Trafigura, there will be increased transparency, high standards, and increased competitiveness across the supply chain.”

Trafigura plans to upgrade the Berbera oil terminal in a phased manner with the support of the Government of Somaliland.

The upgrade will see expanded storage capacity at the terminal.

It will also gradually facilitate the import of jet fuel and liquefied petroleum gas (LPG) to meet demand locally and across the region.

The refinery improvement plans also enable economical import of refined products to local traders, creating access to re-export markets.

Trafigura Africa Energy Trading head James Josling said: “The agreement gives Trafigura access to the existing terminal for storage of refined petroleum products in order to supply the local market in a strategically important region.

“We are working alongside the government to reduce sulphur limits in the local fuel specifications, to give the opportunity for Somaliland to align product specifications with regional market standards such as Ethiopia and Djibouti, which will promote cross-border trade while improving air quality in line with Trafigura’s wider ESG agenda and commitment to Africa.”