Investments in refinery, storage, and distribution infrastructure are needed in Sub-Saharan Africa, according to the African Refiners and Distributors Association (ARDA), since the region’s petroleum product demand is expected to increase by 53% to 177 million metric tonnes by 2040.
Speaking at the Angola Oil and Gas Conference in Luanda against the backdrop of growing industrial activity and population, the Executive Secretary of ARDA stated that the region has to prioritize cleaner fuel in order to prevent impending pollution from the expanding demand.
In an effort to promote energy security throughout the continent, Kragha stated that the amount of African crude oil that can be processed in refineries across the continent needs to be maximized. The production must then be transferred to cleaner fuels via an integrated infrastructure of storage and distribution across the continent.
According to Kragha, refineries in Africa should prioritize premium motor spirit, jet fuel, and diesel while minimizing their carbon footprint and maximizing value addition in the near future.
According to Kragha, the refineries should have stricter fuel requirements, flexible products to satisfy market demands, less diesel output, more petrochemical manufacturing, and improved capital efficiency in the medium term.
Long-term goals he envisioned included using no fuel, increasing capital efficiency, producing petrochemicals directly via alternate channels, and leaving a less environmental impact.
Kragha stated that in order to implement its Energy Transition Plans, the continent required to make coordinated investments in distribution and storage. Kragha called for investment in pan-African, regional oil and product pipelines, pointing out that just six nations in the area had pipelines for crude oil alone, while eight have pipelines for products exclusively.
He emphasized that the region lacks port infrastructure, which is raising congestion and fuel prices, and that developing deepwater ports in Africa would lower shipping costs and congestion.
A minimum port draft of 14 meters, according to the head of ARDA, could save $15 for every metric ton of imported goods. Kragha advocated for a long-term plan that would allow the continent to address the energy difficulties in a span of three decades, as opposed to racing towards energy transformation.
The demand for fossil fuels and goods imports will increase during the next 20 years, he said. Pollution rises as a result of significant urban population growth. In order to address public health challenges, a sustainable transition to cleaner fuels is necessary.”
