Ghana is considering sourcing petroleum products from Nigeria’s Dangote Oil Refinery once the facility reaches full capacity, according to Mustapha Abdul-Hamid, chairman of Ghana’s National Petroleum Authority. This strategic shift aims to decrease Ghana’s dependence on expensive imports from Europe, as reported by Reuters.
Speaking at the OTL Africa Downstream Oil Conference in Lagos, Abdul-Hamid stated that this transition could save Ghana around US$400 million in monthly fuel import costs from Europe.
He explained, “If the refinery reaches a capacity of 650,000 barrels per day, that volume cannot be solely consumed by Nigeria. Therefore, rather than importing from Rotterdam as we currently do, it will be much easier to import from Nigeria, which I believe will help reduce our prices.”
The Dangote refinery, developed by Nigerian billionaire Aliko Dangote, is expected to achieve full operational capacity by the end of this year, with analysts forecasting complete functionality by early 2025. Abdul-Hamid emphasized that sourcing petroleum from Nigeria could lower costs across various sectors by eliminating high freight charges.
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Transformative Impact on Africa’s Energy Market
The Dangote refinery is already making significant waves in Africa’s energy sector. In May, exports of gasoil from the facility nearly doubled, reaching close to 100,000 barrels per day, according to data from analytics firm Kpler. The majority of these exports were sent to other West African countries, highlighting the refinery’s potential to transform regional fuel supply chains.
Economists predict that the Dangote refinery could disrupt the longstanding gasoline trade from Europe to Africa, which is valued at approximately $17 billion annually.
In addition, Abdul-Hamid mentioned the possibility of African nations adopting a common currency in the long term, which could further reduce reliance on the US dollar.
