Published May 3, 2013
The news of Africa’s considerations to refine or not is simple answer in an energy complex world. Africa’s vast resources leverage opportunity that can be a global opportunity in the energy tug of war for profits and the power that can solve the problem of east to access of reserves. The article from Platts reveals “Africa’s energy kingmakers ponder this question: to refine its oil, or not to refine?” leads to a conversation that relates to China, Europe, US Gulf Coast, and the Panama Canal by 2015 for extended capacity.
The oil and gas drive to determine the next ten years of development and profits will be born out of technological advancements, process and optimizing systems across plants for production. The news out of Africa speaks not to overlook this continent.
The news that “Africa’s richest man, Aliko Dangote, said to be the continent’s richest man, to develop and finance the construction an $8 billion refinery.”
“Nigeria’s new refinery would take something in the region of 400,000 barrels a day, taking precious local crudes through the labyrinthine chemistry set to pump out diesel and gasoline. Should it come to be built, it stands to heap further misery on a European refining sector that is increasingly reliant upon Africa’s gasoil and gasoline.”
“While Kenya can boast some pipeline capacity, the bulk of the countries, five of which are landlocked, must move all their imports by road, and the cost of that movement stretches beyond a dollar value. In Ethiopia alone, according to data from National Oil Ethiopia PLC, there are more than 2,000 fatal accidents a year involving tanker drivers, with 80% of the accidents on paved roads, and where driver error accounts for 95% of the causes.”
The role of energy to serve East Africa’s estimated 300 million people living within 11 countries similar in size to Europe with each one of the “countries dependent entirely upon clean product imports”. The result is forcing an opportunity to logistically determine the infrastructural constraints to service its population and advance exportation.
The interesting fact of planned inequity is the innovation within resources to determine new roads to advancement. The is the tortoise and the hare story in which the hare is discounted. The ability for resource rich nations once isolated have leverage to deliver solutions that capitalize. The role of using the leverage is the start of sustainability.
- Domestic refining of PMS reaches 10.2m litres per day – NNPC (transformationwatch.com)