African Refiners and Distributors Association (ARDA) yesterday predicted that the continent’s annual refinery output would reach its peak in 2027 at 77.6 million metric tons amid calls for a sustainable transition to greener fuels.
At the Second High-Level Organisation of Petroleum Exporting Countries (OPEC)-Africa Dialogue Meetings in Cairo, Egypt, where OPEC, the African Energy Commission (a division of the African Union), the African Petroleum Producers Organization (APPO), and ARDA discussed the need for a robust intra-African oil and gas industry, the Executive Secretary of ARDA, Anibor Kragha, predicted that fuel demand in Africa would increase rapidly over the following two decades.
Kragha, citing the backdrop of a growing population, cautioned, however, that problems with public health could arise if cleaner fuel is not prioritized. According to him, sub-Saharan Africa’s need for gasoline imports would increase over time, making it the world’s top importer by 2030.
According to Kragha, the capacity of African refineries is expected to expand by nearly 212% over the next four years, reaching a peak of 52.7 million metric tons.
“Higher peak output reflects new refineries in Angola and Guinea and restarts of refineries in Cameroon and South Africa (Sapref). Subsequent closures driven by the push for cleaner fuel specifications will be offset by opening of the new refinery in Uganda in 2028,” Kragha stated.
Kragha also mentioned the need for cleaner fuels to meet Africa’s expanding energy needs in order to solve pollution and public health challenges. He claimed that distinct implementation strategies were required for lower-carbon power production, sustainable renewable energy sources, and cleaner fuels in Africa. He went on to say that the continent urgently needs a measured, decade-by-decade sustainable finance plan to ensure that investments are made to deliver a special African Energy Transition Plan.
In addition, ARDA remained committed to securing project financing for strategic opportunities in the African downstream oil sector, particularly the Africa LPG Sector Development Fund and the Refinery Upgrades for Clean Fuels, Storage & Distribution Infrastructure, and Petrochemicals Projects Fund. According to the ARDA Executive Secretary, coordinated refinery upgrade and supply and distribution infrastructure projects are essential.
Kragha stated that in order to deliver the Energy Transition Plan(s) for Africa, a coordinated strategy for storage and distribution investments would be needed. He also mentioned the need for regional and pan-African pipelines to connect the continent’s energy centers and deep water ports in order to lessen congestion and, ultimately, lower costs related to petroleum product imports.
According to Kragha, who thinks technology could reduce gas and oil emissions, an inclusive and equitable energy transition plan must be implemented that takes into account the priorities, difficulties, and viewpoints of Africa’s low-emission nations.
“The roadmap must not prioritize near-term emissions reductions (with relatively little climate benefits) over support for economic development and energy transformation.”
Leading energy partners from the whole African continent participated in the second high-level conference and second technical meeting of the OPEC-Africa Energy Dialogue, according to OPEC.
Haitham Al-Ghais, the OPEC Secretary General, said: “The opportunities for the continent will be significant in the years ahead, but there will undoubtedly be a great number of challenges in store as this industry continues to evolve towards a lower-carbon future.”
Speaking at the event, Dr. Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organization (APPO), noted that Africa faces a much more difficult energy transition challenge.
He cited an APPO study that identified three pressing issues (funding, technology, and markets) that African oil and gas producing countries must address if they want to keep their 125 billion barrels of crude oil and more than 550 trillion cubic feet of gas reserves that are present on the continent.
