Zambia imports all its petroleum requirements which contribute 9% to total national energy demand. Petroleum is a key input in the mining and transport sectors on which trade and commerce depend. Established infrastructure for petroleum import and processing include the 1,706-kilometre pipeline which runs from Dar-Es -Salaam in Tanzania to Ndola, a Petroleum Refinery with a design capacity of 1.1 million tonnes per annum and the Ndola Fuel Storage Terminal.
The procurement of petroleum feedstock for processing at the refinery is done through international competitive bidding. The feedstock is transported through the pipeline to the refinery. The finished products are marketed and distributed by privately owned Oil Marketing Companies (OMCs).
Proven coal deposits are estimated to be over 30 million tonnes. Probable coal reserves at Luangwa North, Luano, Lukusashi in the Luangwa Valley and Kahare, Chunga, Lubaba in the Western trough system are believed to be in the region of several hundred million tonnes though more exploration work is required to ascertain the exact nature and extent of the deposits.
Currently Zambia gets its coal from Maamba Collieries. The organisation has a capacity of 1 million tonnes per year. However, despite the large reserves, the contribution of coal to total energy has been declining over the years due to lack of capitalisation in the industry which resulted in production constraints and also the shift in demand away from coal in the mining industry.