The Government of Ghana is hoping to replace it’s fuel imports from Europe with fuel from Nigeria’s Dangote Refinery.
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Mustapha Abudl-Hamid, Chairman of National Petroleum Authority of Ghana made this known while speaking at the OTL Africa Downstream oil conference in Lagos.
Mustapha in his speech highlighted the potential impact of the refinery’s capacity on Ghana’s fuel market.
“This could end monthly fuel imports from Europe of $400 million,” Abdul-Hamid said.
“If the refinery reaches 650,000 bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,” Abdul Hamid added.
The Ghanaian government has hopes of securing a more cost-effective supply for its domestic market. Abdul-Hamid noted that importing from Nigeria would eliminate high transportation costs currently factored into European imports.
“The reduction in freight expenses would help bring down the prices of various goods, positively impacting Ghana’s broader economy,” he added.
The National Petroleum Authority was established by an Act of Parliament (NPA Act 2005, Act 691) to regulate the petroleum downstream industry in Ghana.
The OTL Africa Downstream Energy Week is the continent’s leading downstream energy event for international organizations, policy makers, regulators, development organisations, operators, service providers and consumers in the downstream energy value-chain.
The event is holding in Lagos, from Monday 28th October to Thursday 31st October.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
