COTE D’IVOIRE – Sahara Energy Logistics Holding Limited and Petroci holding have entered into a Joint Venture Agreement (JVA) to facilitate the construction of a Liquefied Petroleum Gas (LPG) storage facility to guarantee LPG supply security in the nation.
Petroci Holdings is the national oil company of Cote D’Ivoire which is officially known as Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire.
According to a report by Business Day the new LPG facility would have a capacity of 12,000 Metric Tonnes of LPG and will be constructed at a cost of US$43 million.
Upon completion, the facility will become the largest of its kind in Sub-Saharan Africa.
It will be constructed in two phases with commissioning scheduled for November 2021 and October 2022 respectively.
Incorporated as SAPET Energy S.A., the joint venture company will handle the construction, operation, and maintenance of the ultra-modern LPG storage terminal.
“This joint venture project is the first of its kind in Côte d’Ivoire and will serve as a model for other projects in the energy sector. It is a historic event that will pave the way for robust and seamless storage, distribution, and supply of LPG”Dr. Ibrahima Diaby – Director-General Petroci
Speaking at the execution of the agreement, Dr. Ibrahima Diaby, Director-General Petroci, said, “this joint venture project is the first of its kind in Côte d’Ivoire and will serve as a model for other projects in the energy sector.”
“It is a historic event that will pave the way for robust and seamless storage, distribution, and supply of LPG. This translates to more clean energy, growth, and productivity in Côte d’Ivoire.”
Industry experts say the development is cheery news for the nation with a population of 25 million people which has recently emerged as one of West Africa’s fastest-growing LPG markets.
National LPG consumption has grown from 175KT in 2013 to 380KT in 2019, a significant increase that far exceeds the country’s demand for liquid products (excluding gasoline).
Olayemi Odutola, Country Manager, Sahara Energy said the project was in tandem with Sahara Group’s commitment to promoting clean energy in Africa through investments, new technology, and collaboration with regional and global institutions.
“We will continue to explore other investment and partnership opportunities to replicate similar projects across the continent,” Odutola added.
The proposed facility will increase the Côte d’Ivoire’s LPG storage capacity by 60% and significantly enhance importation, storage, supply, and distribution of LPG and other related activities in the country.
The investment will also bridge the current product supply and storage gap in the market and ensure more product availability and security by increasing stockholding from 15 days to 27 days.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE