Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Development of a petroleum jetty and associated storage facilities at Albion, Mauritius, to enhance the country's petroleum import capacity, improve energy security, and create more efficient infrastructure for handling petroleum products.
Objectives
Establish modern petroleum import infrastructure to enhance Mauritius's energy security; increase petroleum storage capacity to meet growing demand and strategic reserve requirements; reduce maritime risks associated with current petroleum handling operations; improve operational efficiency and reduce costs for petroleum imports; create infrastructure capable of accommodating larger vessels to benefit from economies of scale; implement international best practices for safety and environmental protection in petroleum handling; support economic development through enhanced energy infrastructure; and create employment opportunities during construction and operation phases.
Strategic Importance
This petroleum infrastructure project addresses a critical strategic need for Mauritius as an island nation entirely dependent on imported petroleum products for energy security. The current petroleum handling infrastructure is constrained by draft limitations, operational inefficiencies, and capacity constraints, creating both economic costs and potential vulnerabilities in the energy supply chain. By developing modern, dedicated petroleum facilities at Albion, the project enhances national energy security while reducing operational costs and maritime risks. The project aligns with Mauritius's economic development strategy as a regional hub by providing world-class infrastructure with capacity to potentially serve neighboring island states in the future. Environmental considerations are paramount given Mauritius's sensitive marine ecosystem and dependence on coastal resources for tourism and fisheries.
Technical Specifications
Technology & Design
The project will employ international best practices for petroleum handling infrastructure, with particular attention to safety, environmental protection, and operational efficiency. Key design elements include a dedicated jetty suitable for vessels up to 80,000 DWT, marine loading arms for efficient and safe transfer, subsea and onshore pipelines with leak detection systems, modern storage tanks with full containment design, advanced firefighting systems, and automated control systems for operations.
Capacity & Size
Jetty designed for vessels up to 80,000 DWT; Total storage capacity of 210,000 cubic meters (various petroleum products); Annual throughput capacity of 2.5 million metric tons; Marine loading arms with quick-connect/disconnect systems; Full containment storage tanks with floating roofs; Advanced firefighting and emergency response systems; Automated control systems and inventory management
Technical Details
Jetty specifications: Length 350m, designed for vessels up to 80,000 DWT with 14m draft; Marine loading arms: 4 units with 16-inch diameter, capable of transfer rates up to 2,500 cubic meters per hour; Pipelines: Marine - 4.5 km subsea pipeline with leak detection; Onshore - 2 km pipeline with appropriate containment; Storage tanks: 14 tanks ranging from 10,000 to 30,000 cubic meters with full containment design and floating roofs; Firefighting systems: NFPA/IMO compliant with foam systems, cooling systems, and fire water reserves; Control systems: Automated operations with SCADA integration, inventory management, and emergency shutdown capabilities; Environmental protection: Vapor recovery systems, oily water treatment, containment barriers, and spill response equipment
Development, Implementation & Financial Details
Development Timeline
Feasibility studies and detailed design (2022-2024); Financing arrangements and procurement (2024-2025); Construction and commissioning (2025-2028)
Latest Implementation Updates
UPDATEDFinancing Structure
The project will employ a public-private partnership approach with: government equity contribution through the State Trading Corporation (STC); debt financing through a combination of commercial banks and development finance institutions; potential strategic investor participation from international energy companies; and specialized facilities potentially developed by private terminal operators under concession arrangements. The government will maintain majority ownership to ensure strategic control over essential energy infrastructure.
Capital Structure
Public sector equity (30-35%): Government of Mauritius through State Trading Corporation; Private sector equity (15-20%): Strategic partners and investors; Debt financing (50%): Commercial banks and development finance institutions
Project Timeline
Start Date
June 2022
Expected Completion
December 2028
Development Timeline
Feasibility studies and detailed design (2022-2024); Financing arrangements and procurement (2024-2025); Construction and commissioning (2025-2028)
Project Status History
Status 2022
Pre-Feasibility
Status 2024
Feasibility
Additional Project Details
Preparation Funding Gap
USD 2.50M
Construction Timeline
Marine works (jetty and pipeline): 2025-2027; Storage facilities and onshore infrastructure: 2026-2028; Commissioning and testing: 2028
Legal & Financial Advisors
Royal HaskoningDHV providing technical advisory services; legal services by Dentons; financial advisory services by KPMG
Market Analysis
Market Analysis
Mauritius consumes approximately 1.5 million metric tons of petroleum products annually, with consumption growing at 3-4% annually. Current import infrastructure at Port Louis is operating near capacity with draft limitations restricting vessel sizes. Market analysis indicates potential for 15-20% cost reduction through economies of scale with larger vessels and improved operational efficiency, with additional benefits from enhanced storage capacity enabling more strategic purchasing during favorable market conditions.
Market Demand
The facility will be designed with capacity to handle 2.5 million metric tons of petroleum products annually, allowing for projected growth over 20+ years. Storage capacity will include 120,000 cubic meters for operational stocks and an additional 90,000 cubic meters for strategic reserves. The infrastructure will serve the entire Mauritian market (population 1.3 million) with potential to provide services to neighboring island states.
Key Stakeholders
Project Sponsor
Ministry of Energy and Public Utilities, State Trading Corporation (STC)
Key Parties
Ministry of Energy and Public Utilities, State Trading Corporation (STC), Mauritius Ports Authority, Ministry of Environment
Investors
Government of Mauritius, African Development Bank, potential private strategic partners
Contractors & Operators
To be determined through international competitive bidding following project structuring
Risk Assessment
General Risk Assessment
Key risks include: marine construction challenges in potentially difficult conditions; environmental sensitivities given Mauritius's reliance on coastal tourism and fisheries; petroleum market fluctuations affecting financial viability; technical complexities in petroleum handling infrastructure; and coordination among multiple stakeholders. Risk mitigation focuses on robust design with appropriate safety factors, comprehensive environmental management, flexible business models to accommodate market changes, established technical standards, and structured governance frameworks.
Regulatory Risks
The project will operate within Mauritius's regulatory framework for petroleum, ports, and environmental protection, with specific licenses required for petroleum storage and handling. Key regulatory considerations include maritime safety regulations, environmental compliance including marine protection, hazardous materials management, emergency response planning, and potential updates to petroleum sector regulations to accommodate the new infrastructure.
Impact Assessment
Environmental Impact
The project requires comprehensive Environmental and Social Impact Assessment with particular attention to the marine environment. Key environmental considerations include potential impacts on coastal ecosystems during construction, operational risks including potential spills and containment, air quality impacts from volatile organic compounds, water quality protection, and climate resilience measures given the site's coastal location and exposure to cyclones. The project will incorporate international best practices for environmental protection in petroleum facilities.
Social Impact
The petroleum infrastructure is expected to generate approximately 500 direct jobs during construction and 120 permanent jobs during operation. Socioeconomic benefits include enhanced energy security for the entire population, potential reduced costs for petroleum products affecting transportation and electricity generation, new technical employment opportunities in the energy sector, and strengthened economic resilience for this island nation. The project will include comprehensive training programs to develop local capacity in specialized petroleum operations.
Investment Opportunities
Private Sector Opportunities
Significant opportunities exist for private sector participation in: equity investment in the project company; specialized terminal operations through management contracts or concessions; engineering, procurement, and construction services; specialized equipment supply and maintenance; supporting infrastructure development including power, water, and utilities; and technical services for petroleum handling and quality management.
Next Steps & Agreements
Next Steps
Complete comprehensive feasibility studies; finalize detailed economic and financial analysis; secure financing commitments; establish implementation structure; develop PPP framework and concession agreements; advance environmental and social impact assessment and management plans
Offtake Agreements
Long-term throughput agreements will be established with the State Trading Corporation as the primary user, with additional agreements for private sector importers. Concession agreements for operation and maintenance will establish performance standards, safety requirements, and fee structures.
Contact Information
Hon. Georges Pierre Lesjongard, Minister of Energy and Public Utilities, Email: mpu@govmu.org; Mr. Rajiv Servansingh, Chairman, State Trading Corporation, Email: stc@stcmu.com
