LAGOS, Nigeria (VOICE OF NAIJA)-The Executive Secretary of the African Refiners and Distributors Association (ARDA), Anibor Kragha, will be speaking at the upcoming African Energy Week (AEW) 2024 conference holding in Cape Town.
Kragha’s is set to deliver a keynote speech on the challenges facing Africa’s downstream industry at the event holding from November 4–8.
According to a statement by APO, the group advocates for increased investment in infrastructure development and modernization, while also encouraging greater participation by local companies.
“Africa is forging ahead in the development of its downstream infrastructure and enhance energy security world wide.
“Being the sole pan-African organization representing the African downstream sector, ARDA, stands at the forefront of this expansion,” it stated.
It noted that as African petroleum demand is projected to surge from the current 4.1 million barrels per day (bpd) to over 5.3 million bpd by 2040, the need to enhance refining capacity and distribution becomes paramount.
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It said that Kragha is expected to outline the blueprints of investment opportunities within the sector during the event.
“Africa Energy Week (AEW) has been the platform of choice for project operators, financiers, technology providers and government to invest, and has emerged as the official place to sign deals in African energy.
“There has been growing demand to increase refining capacity for petroleum across the globe, sparking new developments in the downstream sector.In January 2024, The Dangote Refinery, Africa’s largest refining facility in Nigeria, commenced production and distribution of diesel and aviation fuel.
“This 650,000-bpd facility is expected to meet the nation’s domestic energy needs, and has been subjected be a major exporter for the country when fully operational by mid-2025.”
“The Port Harcourt refinery, also set to start operations after receiving crude oil shipments from Shell in February 2024,” an ARDA member said.
Noting that in Ghana, Sentuo Oil Refinery Limited’s 120,000-bpd refinery launched its first operations in January 2024, the statement added that this facility is expected to process two million tons of crude oil annually in the initial phase, with plans to scale up to five million tons in the second phase, supporting the country’s industrialization drive.
Meanwhile, efforts are underway to expand the processing capacity of the Port Gentil refinery to meet the growing demand for diesel and butane in Gabon.
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The statement also added that there was a major boost in Angola, when the national oil company (NOC) Sonangol, an ARDA member, recently awarded a project management contract for the 200,000 bpd Lobito Refinery to engineering firm KBR in April 2024.
It said this contract marks a significant step forward in the construction of the $6 billion facility, which upon completion will become Angola’s largest refinery, doubling the country’s oil processing capacity.
Additionally, several projects are underway, aiming to bolster regional energy security in Angolan oil and gas resources.African countries are intensifying their focus on expanding oil and gas storage capacity.
“Botswana Oil Limited, an ARDA member and the nation’s National Oil Company (NOC), is actively soliciting proposals for the Tshele Hills Oil Storage Development project, a move aimed at enhancing Botswana’s fuel storage infrastructure.
“In November 2023, a bid was issued to offer a strategic opportunity for downstream investors in the African energy growing market.
“A major milestone was reached by Kenya Pipeline Company to increase its storage capacity following acquisition of assets from the now-defunct Kenya Petroleum Refineries Limited in 2023.
“The company now manages 45 storage tanks with a total capacity of 484 million liters. With the addition of new Kipevu Oil Terminal 2, it’s poised to double the country’s handling capacity from 35,000 tons,” the statement explained.
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According to the statement, these developments underscore Kenya’s dedication to fortifying its energy infrastructure to meet escalating demand.
“Meeting the growing demand for petroleum across Africa requires significant investments across the downstream sector.
“ARDA is spearheading both the rollout of new facilities as well as the modernization of existing downstream infrastructure to meet the continent’s needs.
“The association will continue to be instrumental in ensuring Africa meets its goal of making energy poverty history by 2030,” stated , the Executive Chairman of the African Energy Chamber.
He noted that the NJ Ayuk, with a membership comprising 74 African oil refiners, importers, terminal operators, energy marketers, distributors, and regulators, ARDA serves as a pivotal platform for exchanging technical and commercial best practices, driving the expansion of Africa’s downstream industry.
“This year event will include high-level panel discussions, shining a spotlight on Africa’s downstream project pipeline and enticing investment prospects,” he said.