- Ghana hinted at plans to establish a long-term supply agreement with Dangote Oil Refinery
- Mustapha Abdul-Hamid projected savings on Ghana's monthly fuel import expenditure
- Importing from Nigeria could significantly lower fuel prices for Ghana
Ghana has hinted at possible long-term supply agreements with Dangote Oil Refinery, ensuring a consistent flow of petroleum products at lower prices compared to European markets.
This was disclosed by the head of the country’s oil regulator, Mustapha Abdul-Hamid, at the Oil Trading and Logistics (OTL) Africa Downstream Oil Conference in Lagos on Monday, October 28, according to a report by Reuters.
Ghana hints long-term oil supply deal with 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 stated.
Abdul-Hamid, the chairman of the National Petroleum Authority, indicated that this change could remove the $400 million monthly expenditure Ghana incurs on fuel imports from Europe.
According to him, choosing to import from Nigeria rather than Europe would help reduce the costs of various goods and services by cutting out freight expenses.
Dangote oil refinery set to produce fuel for Nigeria, Africa
He also mentioned that African nations might eventually embrace a common currency, which would reduce the reliance on dollars.
Recall that Nigerian billionaire Aliko Dangote, the CEO of the Dangote Oil Refinery, mentioned in May 2024 that once the facility is fully operational, it will produce refined products like petrol, diesel, and aviation fuel for both the Nigerian market and export throughout Africa.
The Refinery was projected to be operating close to full capacity by the end of this year, with analysts estimating full operations could begin in the first quarter of 2025.
Ghana may suffer blackout as Nigeria stops its supply of gas
Meanwhile, TheRadar earlier reported that Ghana Grid Company Limited (GRIDCO) and the Electricity Company of Ghana (ECG) announced a 21-day power outage due to gas supply shortages in Nigeria.
The West African Gas Pipeline Company Limited (WAPCo) reportedly stated a decrease in the amount of gas available for transportation as a result of a Nigerian facility's maintenance stoppage.