‘Africa needs collaboration to bridge energy infrastructure gap’
• Ghana eyes fuel imports from Dangote refinery
The Chief Executive of the National Petroleum Authority (NPA), Ghana, Dr Mustapha Abdul-Hamid, has said West African countries need to develop petroleum infrastructure through joint investments.
Abdul-Hamid stressed that the region needs to create a petroleum storage infrastructure that differentiates fuel transported outside the country from the one consumed in the country.
He submitted at the 2024 Oil Trading and Logistics (OTL) Africa Downstream Energy Week held in Lagos. He submitted that there is a need for investment in infrastructure rather than transporting petroleum products through tankers, which are open to hazards, banditry and more security concerns.
“It’s very difficult still transporting petroleum products by BRVs or tankers, as the common parlance for them are, so our common countries need to develop petroleum infrastructure together in a collaborative manner, we also need to develop infrastructure by joint investments,” he said.
He mentioned that once the Dangote Refinery operates at full capacity, Ghana could purchase petroleum products from Nigeria, reducing reliance on more costly imports from Europe. Abdul-Hamid said the decision could end its $400 million monthly fuel imports from Europe.
“If the refinery reaches 650,000 bpd capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down the cost and reduce our prices,” he said.
Abdul-Hamid also for the harmonisation of fuel specifications across the West African region, highlighting the need for unified standards to improve fuel quality, reduce emissions and streamline trade.
He emphasised that, in the spirit of ECOWAS, it is important for the countries involved to start aligning their differing political interests into a unified agenda or specific regulatory frameworks that allow everyone to benefit financially.
The Chief Executive of the Nigerian Midstream Downstream Regulatory Authority (NMDPRA), Farouk Ahmed, emphasised the need to expand regional cooperation as Africa pushes for energy transition.
He stressed that the downstream industry is key in providing the platform for the country’s energy transition initiative. The Authority Chief Executive mentioned that President Bola Ahmed Tinubu’s administration has made bold fiscal reforms to enhance crude oil production and efforts are being made to meet the three million barrels daily production.
He added that strategic collaborations and alliances are required for the industry to effectively surmount the emerging and conflicting challenges related to climate action, geopolitical tension, market stability and ever-growing energy demand.
“Within the midstream and downstream sectors, strong collaborations are required between regulatory agencies to facilitate ease of doing business and between businesses to pull resources required to deliver complex projects. It is also necessary to expand regional collaborations to enhance cross-border trade and for the industry to establish a robust mechanism for sharing of best industry practices and capacity optimisation,” he said.
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