On-line African downstream petroleum conference gets executive and political support for clean energy transition plan for two-step path to the future: first, clean fuels; second, climate change mitigation policies.

Move towards sustainable financing to produce cleaner fuels.

The African Refiners & Distributors Association (ARA) held its postponed ARA WEEK 2020 conference as an on-line virtual conference on October 5-7th.

The highlight of the conference was the active support by major African oil executives, led by Mr Mele Kyari, Group Managing Director of NNPC, the Nigerian state oil company, and Mr Cheikh Bedda, Infrastructure and Energy Director of the African Union Commission, for the ARA’s Clean Fuels Policy. This road map to achieve 10ppm sulphur fuels for pan-African transport fuels by 2030 is currently going through the African Union ratification process and is planned to set the stage to secure the financing for the investments needed.

Mr Anibor Kragha, Executive Secretary of the Association, stated “we hope to complete the African Union process by early next year”. Having passed through the initial consultation phase, the ARA is currently completing a study for the African Union of what needs to be done. “Then, the challenge is clear”, he added. “we need to urgently attract the requisite financing to achieve our goals. Our study, and the African Union support, will help African, international, and multi-lateral banks to fund the investments needed to upgrade our refineries and supply chains; recognising that achieving clean fuels and vehicles is the first step, with climate change objectives to follow, towards a unique African energy transition.

The International Energy Agency (IEA) confirmed, during the conference, that petroleum will remain a major part of African energy demand, and will actually grow in real terms, despite the growth in alternative fuels, through to 2040 as both the African population and economies grow. This is due to the complexities of the African fuel and energy supply chains. Any delay in investment, the ARA argues, will not deliver the essential economic, efficient, safe, secure and sustainable supply chain for the clean fuels that will address public health concerns, avoid energy poverty and drive industrial expansion and trade across Africa.

The ARA, its members and sponsors, enjoyed varied presentations on clean fuels and vehicles, energy transition, African distribution and refinery projects, including the massive Dangote refinery being built outside Lagos, and a lively debate on financing challenges involving both African and multi-lateral banks.

Mr Kragha expressed his delight at the success of the on-line conference during the global Covid pandemic. “The active participation we have enjoyed from key industry players over these three days has confirmed the importance of the policies we are promoting. We look forward to all meeting together next year to continue our discussions”, he stated at the conference close.

The ARA was formed in 2006 in order to provide a pan-African voice for the African oil supply, refining and distribution industry. The ARA represents not only refiners but also many product importers, storage companies, marketers, and government regulators.
For further details see www.afrra.org or contact the ARA on info@afrra.org