Ghana commits to importing fuel from Dangote Refinery

By Udeme Akpan, Energy Editor

The Government of Ghana has pledged its commitment to importing petroleum products from the Dangote Petroleum Refinery in Lagos, Nigeria.

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This comes as the 650,000 barrels-per-day refinery says it has sufficient capacity to meet Nigeria’s domestic demand as well as supply the wider African market.

Speaking at the ongoing Nigerian International Energy Summit (NIES) in Abuja, the Chief Executive Officer of Ghana’s National Petroleum Authority, Godwin Kudzo Tameklo, said Ghana’s two small refineries lack the capacity to meet the country’s domestic fuel demand.

According to him, this explains why Ghana will continue to import both crude oil and refined petroleum products from Nigeria.

He added that Ghana and the Dangote Petroleum Refinery have already begun engagements aimed at fostering a strong commercial relationship.

Tameklo also stressed the need for uniform regulation and stable macroeconomic conditions across Africa, noting that exchange-rate stability is critical to successful intra-African energy trade.

“In Ghana, what we have tried to do as a country is to operate two major refineries and a modular refinery of about 5,000 to 6,000 barrels per day, which is quite small,” he said.

“When you talk about 6,000 barrels per day in the Nigerian context it is insignificant, but in Ghana it is considered a sizeable refinery. We have always relied on imports, both crude oil and refined products. Ghana therefore represents a strong offtake market for the Dangote Refinery.”

He added: “We have had extensive engagements with Alhaji Aliko Dangote to position Ghana to take refined products from Nigeria. Given the proximity between Ghana and Nigeria, increased reliance on Nigeria’s refined petroleum products will help us reduce the cost of fuel delivered to Ghana.

“We are doing everything possible to build that relationship. However, for this to succeed, there must be uniform regulation and stable economic performance. If the Ghanaian cedi is performing well while the naira is under pressure, it will limit the economic benefits for our people.”

Tameklo said the regulator’s focus is to ensure the availability of affordable, high-quality fuel for consumers.

“As regulators, our priority is to ensure that Ghanaians have access to cheaper, affordable, and quality products. A partnership with refineries like Dangote, which have committed to supplying quality products, will help us deliver value to our people,” he said.

He noted that Ghana is willing to provide a ready market for Nigerian refined products.

“Nigeria can always rely on Ghana in terms of partnership and market access. It is fair to say that Nigeria has positioned itself as the energy hub of Africa. This position should be strengthened through sound regulation to ensure cooperation and mutual benefit between Ghana and Nigeria,” he said.

Tameklo also cautioned against regulatory pricing in downstream markets, saying it could distort competition.

“In Ghana, we have a minimum fuel price below which marketers cannot sell. This is to protect the industry and prevent practices that could wipe out key players. Allowing operators to sell below cost as a market-entry strategy can destroy competition,” he said.

Sharing Ghana’s experience, he added: “In 2015, when government was subsidising petrol and could not pay subsidies on time, fuel stations were collapsing. To avoid this, we fully deregulated pricing and allowed market forces to operate. This has helped build a robust and resilient downstream sector.”

We have capacity to serve local and foreign markets — GVP

Meanwhile, in an interview with Vanguard, the Group Vice President (Oil and Gas) of the Dangote Group, Devakumar Edwin, said the refinery has sufficient capacity to meet both domestic and export demand.

“The refinery has an installed capacity of 650,000 barrels per day and is currently operating at about 85 per cent, with steady progress toward full utilisation,” he said.

“We produce Premium Motor Spirit (PMS), also known as petrol, and Automotive Gas Oil (AGO), also known as diesel.”

Edwin noted that Nigeria requires only about half of the refinery’s output to meet 100 per cent of domestic demand.

“Nigeria needs only about 50 per cent of our production capacity to meet its petrol and diesel requirements. This leaves significant volumes available for export, and with planned expansions, export volumes will increase further,” he said.

He added that several processing units are already operating above design capacity, demonstrating the strength of the facility.

“This represents a major turnaround for Nigeria, considering that for decades the country relied almost entirely on imported refined petroleum products,” Edwin said.

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