NPA boss: Ghana’s petroleum downstream industry witnesses 41% growth
The unprecedented surge in consumption is the product of various technology-based schemes and interventions which have been introduced by the downstream regulator to curb illicit activities in the fuel industry over the past few months
Ghana’s demand for petroleum products increased by 41% to reach an average value of 7% of gross domestic product in 2021, the chief executive officer of the National Petroleum Authority (NPA), Mustapha Abdul-Hamid, has said.
The unprecedented surge in consumption is one result of various technology-based schemes and interventions that have been implemented by the downstream regulator to curb illicit activities in the petroleum industry over the past few months.
Speaking at the official opening of the fifth edition of the Ghana International Petroleum Conference (GhIPCon) in Accra on Wednesday (28 September 2022), Dr Abdul-Hamid said the sector currently has an annual sales value of GHC32.94 billion, which represents a contribution of 7.2% to Ghana’s GDP.
“Africa’s petroleum downstream sector is entering a new era. As the world looks to accelerate its transition away from fossil fuels, the pressures on our industries are mounting,” he said.
“We are all exposed to the global energy transition, as our countries depend on oil and gas revenues. Ghana’s petroleum downstream industry which has an annual sales value of about GHS32.94 billion, according to 2021 estimates, contributes 7.2% of the country’s GDP.
“This represents a 41% increase in demand for fossil fuels as compared to 2020. This is an unprecedented surge in consumption of fossil fuels when the annual average over the years had been between 5% and 7%,” the NPA CEO added.
He emphasised that Ghana is committed to reducing the emissions from consumption of energy products.
“We at the National Petroleum Authority are committed to reducing the emissions from the energy products we consume in Ghana, and this culminated to the reduction of sulphur content in transport and industrial fuels from a maximum of 5000ppm to a maximum of 50ppm.
“As previously mentioned, Ghana is one of the few African countries that consumes low sulphur fuels, with a roadmap for local refineries to comply,” he said.
Dr Mustapha Hamid further charged participants at this year’s conference to deliberate on the key issues with a focus to devise strategies for deployment.
Speaking on behalf of the Energy Minister, a deputy minister of energy, William Owuraku Aidoo, said Ghana remains committed to an energy transition agenda and the development of the petroleum industry.
“Ghana remains committed to both an energy transition agenda and the development of its petroleum industry, including downstream sector. We believe that the way forward is to strike an important and fair balance between the two without compromising our determination to maximise the benefits we need for our industrialisation,” Aidoo said.
“I am convinced beyond measure that the conference will provide significant outcomes to guide us on the way forward, and I look forward to further engagements in this direction,” he added.
He further charged players in the West Africa sub-region to improve refinery capacity to produce high-quality fuels to reduce greenhouse gas emissions.
The three-day conference is on the theme: “Energy Transition in the African Petroleum Downstream Context: Prospects, Challenges and the Way Forward”.
It is being organised by the National Petroleum Authority in collaboration with the African Refiners and Distributors Association (ARDA), under the auspices of the Ministry of Energy and the Ghana Chamber of Bulk Oil Distributors (CBOD).
It has attracted major players including chief executives, experts and decision-makers in the petroleum sector across the West Africa sub-region.
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