Can you recap the last year for ARDA, including important events and milestones?

ARDA has focused on promoting sustainable infrastructure investments across the downstream sector, sharing industry best practices, and ensuring energy security for Africa, all while balancing the continent’s energy transition ambitions. We divided our activities into hosting and participating in external events to spread our Association’s key message(s). In September, we hosted the Storage & Distribution and Jet Fuel Forum in Addis Ababa, Ethiopia, focusing on African energy security and world-class storage facilities. Forum attendees also discussed sustainable jet fuel chains and held training sessions with TotalEnergies, the Joint Inspection Group, and the Energy Institute. 

In October, we held our first-ever ARDA LPG Forum in Abidjan, Côte d'Ivoire, focused on revolutionizing LPG adoption as a cleaner cooking alternative across Africa. ARDA engaged with organizations such as TotalEnergies, Oryx Energies, Global LPG Partnership, IEA, World Liquid Gas Association, Clean Cooking Alliance, Standard Bank, Africa Finance Corporation, Afreximbank Bank, and the African Development Bank. In November, we launched our training school initiative at ARDA's headquarters in Côte d'Ivoire, where we started training sessions focusing on technical and commercial capabilities. 

Additionally, ARDA supported events such as the Ghana International Petroleum Conference (GHIPCON), the Angola Oil and Gas Conference, and the Crude Oil Refiners Association of Nigeria (CORAN) summit, focusing on value addition and petrochemicals. We attended events like OTL Africa, Africa Energy Week and UNFCCC COP 29 in Azerbaijan, where ARDA participated in panels discussing LPG and private sector leadership on Nationally Determined Contributions. We also supported the SIREXE conference in Côte d'Ivoire and signed an MoU with the Central Africa Pipeline System (CAPS) on the sidelines of that event. 

What insights do you have from your members and sponsors on the sector's development?

With Africa's growing population, there is an enormous need for increased energy investments. We currently have over 80 members in 30 countries and are seeing significant developments across the continent. The Dangote refinery is altering the supply chain dynamics in Africa, pushing for cleaner, low-sulfur fuels. Angola's Barra do Dande Ocean Terminal launch is a significant step forward in terms of strategic storage facilities. In Senegal, the Bargny Mineral and Bulk Carrier Port is being developed to help decongest the Port of Dakar. We also support the CAPS project, enhancing regional infrastructure across 11 countries. During ARDA Week, we are bringing back the investment forum to help members connect with financiers and bring their projects to fruition.

How do you see the financing environment evolving for downstream projects in Africa?

The financing environment for downstream projects in Africa is becoming very exciting. There is a pressing need for refinery upgrades, petrochemicals and critical infrastructure investments. The African Energy Bank plays a crucial role in addressing these needs, and we are part of the OPEC Africa Energy Dialogue, which seeks to build an integrated, intra-African energy market. To attract financing, it is essential to have strong regulatory frameworks, rigorous project preparation, consideration of ESG factors, and investment in human capital development. However, we recognize that the continent's energy needs are vast, and there is a need to expand the pools of financing beyond just the African Energy Bank to meet these demands.

What is your vision for the industry's future with cleaner and alternative fuels?

ARDA is pushing for AFRI6 (10 ppm Sulphur) fuel specifications by 2030. Additionally, we are advocating for using LPG as a clean cooking alternative, aiming to establish a fund to support large-scale LPG projects, focusing on last-mile distribution. We are working with regulators, such as those in the Netherlands, to ensure alignment of standards across the continents. Our vision also includes the development of deep-sea ports and import infrastructure to support cleaner fuels. We will continue prioritizing human capital development and plan technical workshops in Dakar in May as well as another workshop in Accra in June focused on regulation, human capital and financing. Furthermore, we plan to hold a storage, distribution and jet fuel forum in Cairo and a second LPG forum in Tanzania. Refining within Africa to reduce global carbon emissions associated with shipping and foster a more sustainable energy future is essential.

The downstream energy sector is critical, and we need holistic financing solutions to support the entire energy value chain.