Page 4 - AfrOil Week 43 2022

AfrOil COMMENTARY AfrOil

African Energy Week 2022 (Photo: Twitter/@Real_AEW)

Solutions for African

fuel demand problems

Panelists at AEW 2022 disagree over the question of whether to prioritise refinery

construction and utilisation or improvements in petroleum product distribution systems

AFRICA is burdened by widespread and persis- bringing utilisation rates up to 100% before “we
tent energy poverty, so it is hardly surprising that look at other factors if the continent should have
WHAT: the topic came up for discussion during a panel self-sufficiency of fuel,” Kragha commented.
A panel discussion of session on fuel demand at the Africa Energy
energy poverty at AEW Week 2022 (AEW 2022) conference, which Distribution, not just refineries
2022 raised questions took place earlier this month in Cape Town. It Dr. Mustapha Abdul-Hamid, the CEO of
about how to address is equally unsurprising to hear that those tak- Ghana’s National Petroleum Authority (NPA),
gaps in fuel supply and ing part in the panel – which did, after all, focus took a different position, urging African states
demand.
on fuel demand – talked about possible down- to focus on fuel distribution. He argued that
stream solutions to the problem. building new refineries, whether they were large
WHY: It is interesting to note, though, that there plants or smaller modular units, would not nec-
Panelists disagreed on
whether refinery utilisa- were different opinions with respect to what sort essarily reduce energy poverty. Instead, he said,
tion or better distribution of downstream solutions might be necessary. Africa needs efficient distribution networks so
systems should be a On the one hand, Anibor Kragha, the exec- that petroleum products can be moved easily
higher priority. utive secretary of the African Refiners & Dis- from one country to another.
tributors Association (ARDA), argued that the Abdul-Hamid also touted the Ghanaian gov-
WHAT NEXT: continent was experiencing energy poverty ernment’s approach to the matter, noting that
Recent events in Nigeria partially because of its failure to utilise all of its Accra had led efforts to establish a fuel hub in
help shed light on the existing refining capacity. Africa has refiner- the country’s Western region.
question. ies spread across 20 countries that can process The government set up the Petroleum Hub
about 3.3mn barrels per day (bpd), and it is not Development Authority (PHDA) to carry out
using enough of what it has, he said. the $60bn project, which is being led by pri-
“[Ten] years ago, the utilisation of the refin- vate investors, he said. The hub will eventually
eries across Africa was about 75%, but now it is include three oil refineries, extensive storage
between 50% and 55%,” he was quoted as saying facilities, water treatment plants and other
by the Ghanaian Times. infrastructure, the Ghanaian Times quoted him
Africa’s first priority, therefore, ought to be as saying.

P4 www. NEWSBASE .com Week 43 27•October•2022