Trafigura, a market leader in the global commodities industry, has this week delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism. This is the first step in a commitment by Trafigura to invest in Berbera Oil Terminal (“BOT”) facilities to position it as a gateway to serve customers within the country, and integrate oil logistics across the Horn of Africa.

Trafigura, with the full support of the Government, intends to upgrade BOT in a phased approach to improve and expand the storage capacity, and eventually facilitate the import of jet fuel and LPG to meet local and regional demand whilst ensuring international health and safety standards. Plans also include increasing the draft to enable larger vessels to be received and allow local traders more economical import of refined products and access to re-export markets. This will help support the Somaliland Government’s ambition to transform Berbera port as a strategic hub in a region where demand is growing year on year.

“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,” said Mr. Mohamoud Hassan Saad, Minister of Trade Industry and Tourism, “By working with Trafigura there will be increased transparency, high standards, and increased competitiveness across the supply chain.”

“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,” said James Josling, Head of Africa Energy Trading for Trafigura. “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.”