Home Energy Cote d’Ivoire to invest $1bn in largest storage facility in SSA

Cote d’Ivoire to invest $1bn in largest storage facility in SSA

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TWO new petroleum product storage and transport companies in Cote d’Ivoire are planning to invest a combined $975 million in product pipeline and storage facilities with the aim of becoming sub-Saharan Africa’s petroleum product hub.

The country is hoping to take advantage of growing consumption in the region. Sub-Saharan Africa consumed 33.15 million tonnes of gasoline in 2015, however only 11.35 million tonnes, representing 34.2 percent,  was refined in the region. Excluding South Africa, the region only refined 12 percent of its total gasoline consumption.

Therefore, taking advantage of importing activities for the region is a strategic move by the country. Cote d’Ivoire’s location gives the country the advantage in terms of proximity to refineries in Europe and to major markets in the region including Nigeria, which constitute 51.8 percent (excluding South Africa) of the region’s gasoline market.

The storage and transport company plans to build storage capacity of up to 1.2 million tonnes by 2020. The two companies boast of 12 strategic investors including Total, Vivo, Puma, Petroci and Sahara among others. The move is likely to also attract refinery investment into the country if successful. Cote d’Ivoire is a net exporter of petroleum products.

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