Zener SA, Togo

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Established in 2007, Zener (or the “company,” https://zener.tg/) holds a significant market share in the Togolese Liquefied Petroleum Gas (LPG) storage and distribution market. Until April 2021, the company was known as Sodigaz, which continues to be the gas brand managed exclusively by Zener in the Togo market. The company has a butane storage and filling terminal in the area of Port of Lome, Togo which has been operating since 2010. Within the terminal, there are 12 bullet tanks for the storge of liquid butane with a capacity of about 5100 m3 (or 2500 tonnes) (600 m3 x 6, 450 m3 x 3, 200 m3 x 2 and 150 m3 x 1). Butane is received into the tanks from vessels in the port via a 4 km long pipeline and from the tanks, it is then transferred to road tankers (about 10 tankers of 25 tonnes in a day) mainly for export to neighboring countries. Two of the tanks are used to fill gas cylinders filling operations (60 tonnes/day capacity) which are then supplied to the third-party distributors who further distribute these tanks to some 700 distribution points e.g., supermarkets and shops, in-country.One of the affiliate entities of Zener, Diwa Industries Limited (Diwa), operates a Liquefied Petroleum Gas (LPG) cylinder manufacturing and CO2 plant (“Blitta Plant”) in Blitta town (about 260 km from Lome). The plant has a production capacity of 600 new cylinders/day and repair of 1200 cylinders/day of various capacities (3 kg, 6 kg, 12.5 kg, 25 kg, 50 kg and small tanks of 500 kg to 1000 kg capacity). The proposed investment consists of up to EUR7 million IFC Senior Loan and mobilization of up to EUR14 million in B/Parallel loans for (the “Project”): (a)      Development of a Propane Storage and Distribution facility (“Propane storage”) - next to the existing Butane storage terminal, in Lome, Togo: Zener is planning to expand the terminal by installing additional 10 tanks for the storage of propane gas with a total capacity of 6000 m3 or 2800 tonnes. A minimum of 1000 tonnes/month will be supplied to a nearby existing gas-fired power plant through a 3 km pipeline, while the rest will be supplied to other nearby facilities such as a cement plant and agro-processing plants through tankers. Zener will also export propane as a domestic cooking gas to surrounding countries such as Ghana and Burkina Faso. The company is also looking into opportunities to use the Propane to generate industrial Carbon dioxide gas (CO2) for its use in the Diwa’s cylinder manufacturing plant. Civil work for the foundation of the Bullet Tanks has been completed. Five of the tanks have been delivered on-site, however, installation has not started. The installation is expected to be completed by January 2022.(b)      Construction of five fuel retail stations for white products (Gasoline and Diesel) and gas cylinders exchange: Zener will build five fuel stations. The fuel stations will retail fuel and act as an exchange for LPG cylinders in underserved areas of Togo when completed and drive the transition from more harmful biomass to LPG for cooking. The stations will have two tanks (of 25 m3 each) for diesel and gasoline, store, management office, mini-shop (to be leased) and space for fast-food services (which will be leased to Bonici, Zener’s group company and a subsidiary of international brand, Bonici of France, https://tg.bonici.africa/en/).