Page 9 - DMEA Week 49 2021

DMEA REFINING DMEA

Ghanaian minister calls for

improved African downstream trade

AFRICA GHANA’S deputy energy minster Dr Moham- and only resumed operations in January fol-
med Amin Adam has called on African coun- lowing a six-month closure. Outages have been
tries to increase their refining capabilities and experienced at the crude distillation and fluid
deepen regional trade of refined products and catalytic cracking units, while only one of the
petrochemicals. CDU’s furnaces is currently operational, giving
Speaking at the 8th edition of the annual the 56-year-old facility an effective throughput
Ghana Oil and Gas Awards in Accra this week, capacity of 30,000 bpd.
he highlighted that intra-African oil trade However, in May S&P Global Platts quoted
accounts for just 5%, adding that amid great mar- sources as saying that the refinery had depleted
ket uncertainty, Africans should look to regional all of its feedstock with operations halted for
trade to improve economic performance. maintenance and repair works to begin.
“We should mobilise resources to trade “The refinery is currently down. We
among ourselves as Africans. We need to build exhausted the crude oil we had and we are yet to
our refinery capacities. This will enable us to cre- receive any new crude oil cargo,” the source said.
ate wealth together for now and in the future. We “In the meantime, the maintenance outfit of the
can transform our oil into petrochemicals that company is taking advantage of the situation to
are needed everywhere in the world,” Adam said. carry out some few repair works.”
He added that according to International Frustrations have boiled over in recent
Energy Agency estimates, petrochemicals will months with local outlet Modern Ghana report-
account for a third of global oil demand by 2030, ing in August that refinery staff had “recently
with this growing to 50% by 2050. locked up some management staff”.
In light of these macroeconomic influences, Meanwhile, state utility ECG said this week
Adam said that Ghana’s Ministry of Energy is that it had cut electricity supplies to TOR follow-
working to diversify the industry and “harness ing the facility’s failure to pay $4.3mn of debt.
the benefit of the oil and gas resources” through “We’ve pursued [TOR] for some time to pay
the establishment of a petroleum hub. the bill, but unfortunately, all our [efforts were]
“We need to be mindful that the future of our not yielding, so we were compelled to cut the
industry is uncertain. We are working so hard to lines,” according to the leader of a taskforce set up
reposition our country to maximize the benefits to recover the missing payment. He added that
of our oil and gas resources. We are convinced ECG will restore power only if the state refinery
that we will continue to produce oil but not hurt pays at least 30% of the debt. However, the local
the environment, I urge you to talk to your inves- Joy News reported that TOR has expressed sur-
tors abroad to invest here in Ghana by building prise over ECG’s actions.
refineries,” he said. The two companies held talks in ECG’s Accra
Currently, Ghana’s refining capabilities are offices regarding the repayment of debt with Joy
limited to the 45,000 barrel per day (bpd) Tema News quoting sources as saying that the parties
Oil Refinery (TOR). had agreed an $81,000 per month payment plan,
The facility has been plagued by issues since kicking off this month. This was to be increased
an explosion at its distillation unit in early 2017 once TOR’s operations ramp up next year.™

Week 49 09•December•2021 www. NEWSBASE .com P9