Inadequate storage, distribution infrastructure may stall transition to cleaner energy – Experts

Africa’s attempt to transition to cleaner energy sources as part of measures geared at meeting the UN Sustainable Development Goals (SDGs) and mitigating deforestation could be hampered by inadequate storage and distribution infrastructure, the African Refiners & Distributors Association (ARDA) and other major global players in the energy sector have said.

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 The experts disclosed this at an online workshop organised by ARDA, which aimed at delivering strategies for coordinating Storage and Distribution (S&D) investments across the continent to support the projected increase in the continent’s future petroleum products demand.

 The players in the African downstream sector, including Kenya Pipeline Company (KPC), Rainoil Limited (Nigeria), SENSTOCK (Senegal), and SONABHY (Burkina Faso) discussed oil and LPG terminal investments in Burkina Faso and Nigeria, digitalization of storage tanks, and loading trucks in Senegal, and KPC’s strategy for expanding its assets and operations across the Great Lakes area (Burundi, DRC, Kenya, Rwanda, South Sudan, and Uganda) amongst other relevant topics.

 The executive secretary of ARDA, Anibor Kragha stressed at the workshop that African leaders must develop a coordinated, energy transition road map that would result in investments in critical S&D infrastructure (terminals, pipelines, rail, ports, etc.) needed to deliver petroleum products across Africa over the next two decades.

 Kragha said: “It is imperative that key decision-makers across the continent develop a robust energy transition roadmap that fully incorporates storage and distribution requirements needed to support Africa’s projected increased demand for petroleum products.”

 Kragha had earlier disclosed that “The African Union Commission and ARDA recently assessed investments needed to upgrade African refineries to produce cleaner fuels.”

According to him, a similar study needs to be conducted to determine the corresponding storage and distribution investments needed to transport the cleaner fuels efficiently and safely across Africa.”

 Experts at the event also discussed key considerations for regional, multi-country pipeline initiatives in West and Southern Africa for pipelines and the importance of reducing shipping costs and congestion at major African deepwater ports, given that product imports still play a role in the near term.

 Speaking at the event, Feiko Jager of Riverlake, a global leader in ports optimisation projects, said: “By ensuring a minimum port draft of 14 metres which enables Medium Range tankers to discharge directly, African ports can save up to $15 per ton of imported products. Additional cost savings will be gained from a reduction in port congestion and demurrage.”

The stakeholders, which also included HMT Tanks and Alma Group, also discussed how to reduce emissions from oil and petroleum products storage tanks, along with the corresponding and environmental and cash flow benefits products at oil terminals.