Africa's oil products demand set to soar 40% by 2020: consultancy

Cape Town (Platts)--11Mar2010/1001 am EST/1501 GMT



Oil products demand in Africa will rise by over 40% in the next ten years, outpacing growth rates in world demand, while the continent's refineries will struggle to satisfy this upturn, downstream African energy specialist CITAC Africa said Thursday.

African demand in 2020 is expected to average 4.3 million b/d from 3 million b/d in 2008, driven largely by a rising appetite for gasoil and gasoline, CITAC's Elitsa Georgiev told delegates Thursday in Cape Town.

"Our energy forecasts lead us to predict 60% growth in West and Central Africa, 57% in Southern Africa and 22% in North Africa," Georgieva said.

This will result in clean products having to be imported in ever-increasing quantities as refineries fail to satisfy growing demand and struggle to justify new investment on poor refining margin, she said.

African regional oil production averaged an estimated 9.79 million b/d in 2009 and is set to rise to 12.52 million b/d by 2014.

PROJECT TO IMPROVE VETTING OF OIL PRODUCTS TANKERS

The African Refiners Association (ARA), set up in 2005 and representing more than 40 refiners from the continent, said it had embarked on a research project to improve the vetting of tankers which carry oil products around Africa.

The objective is to progressively bring tankers up to an acceptable standard in line with those carrying oil products throughout the world, said ARA's Joel Dervain.

The project will initially focus on the Gulf of Guinea region and subsequently will be rolled out to other regions, he added.

--Jacinta Moran, jacinta_moran@platts.com