Institute of Energy Security warns of fuel shortage
Fuel supplies are expected to be seriously disrupted due to the unanticipated shutdown of the Tema Oil Refinery (TOR).
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The situation is expected to be aggravated by port congestion facing the oil companies, which is compelling them to postpone their import and export programmes; amid acute discharge and loading constraints.
A release issued in Accra on Tuesday and signed by the Principal Research Analyst, Petroleum Unit of the Institute of Energy Security (IES), Mr Richard Rockson, said: “As a result, stocks of the two main petroleum products consumed in the country have fallen short of the mandatory strategic level of six-weeks, at a time when economic activities have picked up across the country after the general election and Christmas festivities”.
Stock levels
The release said: “At the close of business on Monday, the country’s stock of gasoline and gas oil at both the Tema Oil Refinery (TOR) and the Bulk Oil Storage and Transportation Company (BOST) installations across the country was 86,000 metric ton.”
It said, “Also, the stocks held in-tank at Bulk Oil Distribution Companies (BDC’s) facilities in Tema stood at 24,750 metric ton. A year ago, the combined stock of these fuel stood at 451,200 metric ton; a little above the mandatory six weeks requirement”. The release said: “Today, the stock of gasoline and gas oil combined can meet just 13-days of fuel supply. The last time the country came close to this situation was June 2014 and this actually resulted in fuel shortages in the country.”
It said the current situation was anticipated when the explosion of the furnace occurred at TOR a few weeks ago.
The release said that was the moment when the government and relevant agencies should have taken the necessary steps to forestall any such incident, especially when it was followed up with a disruption of the Conventional Buoy Mooring (CBM) facility in Tema.
“The National Petroleum Authority (NPA) revised the Laycan for vessels prior to the explosion at TOR but it failed to produce any positive result, especially due to the low discharge and loading flow-rate from the Tema Oil jetty to oil installations in Tema,” it said.
“If the fuel discharge and loading constraints, coupled with the shutdown of the refinery, persist, the situation will create fuel shortage across the country within the next few weeks,” the release warned.
Advice
The institute, therefore, called on the authorities to, as a matter of urgency, increase fuel supplies for strategic reserves in order to avoid the eminent threat facing the country.
“IES has also noted unfairness in the use of the Tema Oil Jetty, which will result in the shortage of LPG in the coming days. IES has found out that while an LPG vessel belonging to BOST has been at anchorage since January 23, 2017 awaiting space to discharge its products, Fuel Trade within the period has discharged more than two vessels of LPG through the Oil Jetty from January 23, 2017 till date,” it said.
“This practice of unfairness is going to cost the taxpayer $440,000 in demurrage from January 23, 2017 to date and still counting. IES is calling on the NPA to discharge it duties fairly in the deregulated downstream petroleum industry by ensuring value for money for all players in the industry and that the taxpayer is not burdened with cost at the expense of private players whose motive is purely profit driven,” it said.
