Posted on :Monday , 5th October 2015

“We are planning to spend about $25 million to $30 million in acquiring new terminals in East Africa,” Thangapandian Srinivasalu (left), the Executive Director of Gulf Petrochem said last week in Sharjah.

Speaking to media in a series of interviews, Srinivasalu said their focus of growth will be the UAE, India and East Africa.

“The next decade belongs to Africa and there are tremendous business opportunities in East Africa, which is politically stable and secure. There is steady growth of 5 to 7 per cent in Tanzania, Kenya and Uganda.”

He said the demand for gasoil and gasoline in Africa is increasing at about eight per cent, while the demand for LPG is in dual digits. Industrial expansion and the rising presence of automobiles in East Africa are key reasons that have enhanced the region’s demand for oil product imports.

Earlier this year, the $2.5 billion compnay by worth, announced the acquisition of Essar Petroleum East Africa and bundled the purchsase into a new business entity, Aspam Energy (Kenya) Limited.

According to management, this was intended to improve the group’s services and products for the downstream supply chain in the oil and gas sector in East Africa.

Gulf Petrochem Group secured the due approvals from the Energy Regulatory Commission (ERC), the Competition Commission and other regulatory bodies. Apsam continues to caters to customers in East Africa who were earlier serviced by Essar in the fuel retailing segment. Apsam now markets petroleum products through outlets earlier serviced by Essar. It also intends to develop storage and retail infrastructures as part of its long term goals in East Africa along with the expansion of retail networks through organic and inorganic routes of growth.