Ghana To Import Petroleum Products From Dangote Refinery

October 29th, 2024



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Ghana To Import Petroleum Products From Dangote Refinery

Ghana To Import Petroleum Products From Dangote Refinery

The Ghana National Petroleum Authority (NPA) is exploring the possibility of purchasing petroleum products from the Dangote Petroleum Refinery once it achieves full operational capacity. Mustapha Abdul-Hamid, the chairman of NPA, made this announcement during the OTL Africa Downstream Oil Conference held in Lagos on Monday.

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As of September 3, the Dangote refinery officially began its crude oil refining operations. This significant facility, which boasts a capacity of 650,000 barrels per day (bpd), initiated production earlier in January, focusing on diesel and aviation fuel.

Chairman Abdul-Hamid emphasized that sourcing petroleum products from the Dangote refinery could significantly reduce Ghana’s reliance on more expensive imports from Europe. Currently, these imports cost the country approximately $400 million each month. His remarks underline the potential economic benefits of leveraging local refinery capabilities to enhance energy security and reduce costs for the nation.

Dangote Refinery

“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,” Hamid said.

He said importing from Nigeria rather than Europe would reduce the prices of other goods and services by removing freight costs.

Hamid also said African countries would agree on a common currency that should dampen demand for dollars.

The Association of Oil Marketing Companies (AOMCs) in Ghana had on September 11, projected a marginal reduction in petrol and diesel prices starting from September 16 — if the cedi remains stable against the dollar.

Owned by Aliko Dangote, Africa’s richest man, the refinery is expected to operate at near full capacity at the end of the year.



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