Industry organisation the African Refiners and Distributors Association (ARDA) will host its seventeenth yearly ARDA Week conference in person, from March 13 to 17 at the Century City Conference Centre, in Cape Town.
Previewing the event, ARDA president Marieme Ndoye Decreane highlights that action is needed to balance the competing challenges of Africa’s downstream energy transition, security and scarce financing.
The Russia-Ukraine crisis has Europe competing for the products currently being imported into Africa, Decreane, who is also MD of the SAR refinery in Dakar, Senegal, says.
“We cannot prevaricate if we are going to meet our short-term energy security objectives, banish fuel poverty and achieve our Conference of Parties targets. Action is needed now,” she emphasises.
ARDA executive secretary Anibor Kragha is equally very clear on the major competing challenges to the African downstream sector as it struggles to balance its near-term cleaner fuel needs with the longer-term energy transition initiatives.
“Africa thought we had a major challenge ahead with seeking a just energy transition for our continent within the COP process. But as our plans were being developed, the Ukraine war prioritised short-term security of petroleum product supplies for African countries.
“These competing challenges are not only difficult to reconcile in terms of their objectives but also, critically, in competing for the same pool of financing,” he notes.
“With banks under increasing pressure from environmental, social and governance activists to limit investments in fossil fuel projects – even as steps are being taken towards achieving a cleaner world while removing energy poverty – there is a major risk that Africa will experience significant shortages of the cleaner energy required to enable the continent’s transition to a low-carbon economy,” he adds.
Ahead of the conference, Decreane has also highlighted the conflicting fortunes of the African downstream sector.
“In Senegal, we are investing in our refinery, backed by our country’s President, and, in Nigeria, the gigantic Dangote refinery is nearing completion backed by private financing. Nigeria is also rehabilitating its NNPC refineries, and other countries such as Algeria, Egypt, Angola, Côte d’Ivoire, Congo-Brazzaville, Uganda and Cameroon have ongoing projects.
“However, in Zambia and South Africa, refineries have announced closures.
“At the same time, investment in improving infrastructure and logistic efficiency, critical to our continent’s economic progress, has stalled, as have cleaner fuel and vehicles initiatives,” she outlines.
At the conference, sessions will discuss pan-African challenges and opportunities.
Sessions include discussions on energy security – the current state of play – global market trends and potential impacts; post COP-27: ensuring a coordinated, robust intra-African oil and gas industry alongside implementation of energy transition aspirations; decarbonising the African continent – economic opportunities and key enablers; financing infrastructure projects to accelerate Africa's energy transition; carbon abatement projects as a path to generating carbon credits; spotlight on African downstream projects – highlighting refinery investments for energy security; and the future of cleaner fuels: liquified petroleum gas, biofuels and other sustainable fuels integration for energy security.
Individual speakers, meanwhile, will cover topics that include the role of the downstream in delivering the African Carbon Markets Initiative; national oil companies and energy transition – the path to net-zero; African independents’ path to cleaner fuels and net-zero; and cleaner vehicle emissions – an essential path to reduce air pollution.
ARDA was formed in 2006 to provide a pan-African voice for the African oil supply, refining and distribution industry. The association represents refiners, several product importers, storage companies, marketers and government regulators.