New refining projects provide hope for reducing Africa’s dependence on fuel imports
Up to 1 million barrels per day (b/d) of new refining projects are set to come online in western and southern African over the next five years – which has revived hopes that the continent can reduce its reliance on fuel imports.
This according to global energy, petrochemicals, metals and agriculture information provider, S&P Global Platts, who said that these new refineries needed to make sure they were able to compete globally.
The largest project is the 650 000 b/d Dangote refinery in Nigeria, scheduled to launch in 2020, which could put a lid on exports by Africa’s largest crude oil producer.
In addition to this, Ghana has announced plans to build a 150 000 b/d refinery in Takoradi along with potential upgrades at the existing Tema Oil Refinery. Angola is looking to build a 200 000 b/d refinery in Lobito by 2022 as well as a smaller plant in Cabinda.
Smaller modernisation and construction projects are also expected to go ahead in Senegal, Cameroon, Angola, Nigeria, Gabon and the Ivory Coast in the near future.
“Even if half of this capacity comes online in this, the ramifications will not only be observed in the flows of refined products but also in the crude oil markets, as this region is a pivotal exporter of crude to the global refining hubs,” said Platts spokesperson, Eklavya Gupte.
