PETROLEUM SUPPLY EMERGENCY PLAN

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EAST AFRICAN COMMUNITY SECRETARIAT

PETROLEUM SUPPLY EMERGENCY PLAN

AICC, ARUSHA, TANZANIA

OCTOBER 2008

EAC Secretariat

P.O. Box 1096

Arusha, Tanzania

Petroleum Supply Emergency Plan for EAC

1.0 BACKGROUND

1.1

The region relies on imported petroleum products to satisfy its demand with only two major entry points namely Mombasa and Dar es Salaam ports. Thus the region is exposed to events occurring outside the region and the price uncertainties in the world market.

1.2

Delivery of products to the landlocked Partner States depends upon smooth transit across Kenya and Tanzania. The delivery process to Uganda, Rwanda and Burundi is subject to internal requirements and procedures. These requirements and procedures, together with inefficiencies at the ports and along the transport system have impacted negatively on the smooth delivery of products sometimes leading to delays in delivery, which may manifest as artificial shortages.

1.3

Disruptions along the route due to civil strife, unrest or damages to transportation infrastructure can impact on the supply situation of the land locked Partner

States. The region experienced shortages in the period January to March 2008 due to the situation that emerged after the December 2007 general elections in

Kenya. This caused disruptions supply systems leading to shortage of petroleum products in the region. The inland Partner States of Rwanda, Burundi and

Uganda were worst hit by the disruption. The situation was worsened by lack of a regional emergency petroleum products supply plan.

1.4

During the second meeting of the Sectoral Council on Energy held in Nairobi on

12 th

April 2007, the Sectoral Council considered ways of addressing emergencies in the Energy supplies and decided as follows:

(a) The affected Partner States reports the matter to the EAC for action; and

(b) The Secretary General of the EAC convenes an appropriate high level meeting to address the emergencies.

1.5

At its third meeting held on 25 th

April 2008 in Arusha, the Sectoral Council on

Energy authorized immediate formulation of an emergency petroleum supply plan for the region.

1.6

Responding to petroleum supply shortages or disruptions and their effects is necessary for preservation of safety, economic activities and general welfare of the Community.

EAC Emergency Petroleum Supply Plan 1

2.0 DEFINITION OF EMERGENCY SITUATION

Conditions, incidents or events that disrupt supplies or have adverse wide-spread effects on the ability to distribute petroleum products and/or damage facilities and infrastructure thereby affecting petroleum distribution. The conditions qualifying to constitute emergency situations include but not limited to extreme weather, disasters, strikes, international embargos, civil strife, terrorism and acts of war.

3.0 OBJECTIVES

3.1

To establish policies and procedures for preventing, responding to and recovering from shortages arising from an emergency situation, which affect or threaten to significantly impact on the economic, social and security activities.

3.2

To provide for effective use of available petroleum products required to meet essential services during an emergency.

3.3

To coordinate provision of emergency supply and transportation of petroleum products.

3.4

To facilitate restoration of the systems affected by an emergency.

4.0 ASSUMPTIONS

4.1

An affected Partner State will not be able to adequately resolve the emergency situation without support of the Region.

4.2

The emergency situation may have been caused by occurrences and/or activities within or outside the region.

4.3

Partner States have mechanisms to ensure that providers have existing plans and procedures for dealing with emergencies. Local emergency situations with limited impact will be addressed by individual Partner States.

4.4

Coordination and direction of local, national and regional efforts and volunteers will be required.

5.0 ORGANIZATION

5.1

To set the Emergency Supply Plan activities into motion, the Minister responsible for petroleum supply in the affected Partner State shall declare an emergency and inform the counterpart Ministers of the other Partner

States.

5.2

The Ministries responsible for petroleum supply in each Partner State shall be the Primary Agencies to respond to the petroleum supply emergencies.

5.3

The ministries will set up Management of Energy Emergency Teams (MEET) responsible for responding to petroleum supply emergencies. The MEET membership shall be Ministries responsible for energy, finance, EAC, trade, immigration, infrastructure, internal security and revenue authorities.

EAC Emergency Petroleum Supply Plan 2

5.4

The Primary Agencies will work closely with the authorities responsible for disaster and emergency preparedness and response.

5.5

The National Primary Agencies shall constitute the agency for addressing emergencies at regional level.

6.0 PROCEDURES

6.1

Preparedness Activities i. Utility and petroleum providers should design, locate and install systems and facilities that are least vulnerable to known hazards and ensure, to the best of their ability, that they are always kept in a state of good repair. ii. When repairing damages, every attempt should be made to reduce the likelihood and severity of future damages. iii. Providers should take preventive actions to reduce the effects of hazards. iv. Suppliers utilities will manage and operate their respective systems in accordance with established legal requirements and industry best practice. v. Primary Agencies of Partner States and the Regional Agency will maintain current information, during normal and emergency situations, regarding supply, demand and damage to supply and distribution system. They will make use of an alert flagging system to identify different levels of preparedness:

Green - Normal (1 month refined stock available within the country plus stock in transit)

Yellow – Alert (2 weeks refined stock available within the country and no stock in transit)

Red – Emergency (less than one week refined stock available within the country and no stock in transit). vi. vii. Suppliers and utilities will have documented procedures approved by Regulatory Authorities for responding to emergency situations. viii.

Each Partner State at any time will maintain strategic stocks of refined products covering a minimum of one month stocks.

Primary Agencies of Partner States and the Regional Agency will maintain inventories of utilities, suppliers and emergency response organizations including names, addresses and telephone numbers of key contact personnel.

EAC Emergency Petroleum Supply Plan 3

ix. Primary Agencies of Partner States and the Regional Agency will develop and maintain operating procedures for actions to take during emergency and ensure that personnel are aware of their responsibilities and are trained in emergency operations.

6.2

Response Actions i. To the maximum extent possible during an emergency situation, the petroleum distribution systems will continue to provide services through their normal means. ii. Petroleum suppliers will compile damage assessment reports and submit to the Primary Agencies for evaluation and appropriate action. iii. The Primary Agencies will: a) determine the status of petroleum products available and assess the supply system capabilities. b) make all decisions dealing with rationing and prioritization of available supplies. c) in conjunction with appropriate authorities identify and establish priorities for repair and restoration of damaged or disrupted systems. d) coordinate sources of emergency supplies for essential operations. e) coordinate suppliers to obtain information, security, equipment, specialized labour and other requirements to maintain flow of supplies and to restore supply systems to normal. provide regular information to the public on prevailing situation, and on proper and efficient use of petroleum products. g) Coordination of temporary, alternative or interim sources of emergency fuel. h) Assessment of assets available to assist during the emergency situation and prioritization on allocation of the assets to provide supplies to areas of high reliability needs

(e.g hospitals), emergency response organizations and areas requiring evacuation. i) Coordination with industry associations. j) Regular public information.

EAC Emergency Petroleum Supply Plan 4

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