CÔTE D’IVOIRE – Petroci, Côte d’Ivoire’s national oil company, in partnership with Sahara Energy and under advisory of international law firm Gide and Ivorian law firm SCPA 3K, is set to construct a 12,000-metric ton liquefied petroleum gas (LPG) storage facility in Abidjan.
The total cost of the project is 23.9 billion CFA francs (US$43 million) and will increase the storage capacity of LPG in the country by 60%, thereby increasing consumption autonomy from 15 to 27 days and securing domestic LPG supply.
The project will thus promote the uptake of LPG use, initiated by the Government with a view to curbing deforestation and safeguarding the environment.
During a Council of Ministers meeting held on September 9, the Government of Côte d’Ivoire approved the acquisition by Petroci of a stake in the share capital of Sahara Petroci Energy S.A., a joint venture that will develop, operate and maintain the storage capacity.
“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.”
Olayemi Odutola – Country Manager – Sahara Energy
The decision was formalized by the signing of a shareholders’ agreement between Petroci (35%) and Sahara Energy (65%).
The 12,000MT Liquefied Petroleum Gas storage facility will guarantee LPG supply security in Cote d’Ivoire, The Joint Venture partners DG, Petroci Holding and Sahara Energy have said.
The proposed facility will increase the country’s LPG storage capacity by 60% and significantly enhance importation, storage, supply and distribution of LPG and other related activities in Cote d’Ivoire and its neighbouring countries such as Mali, Burkina Faso, and Guinea.
The investment will also bridge the current product supply and storage gap in the market and ensure more product availability and security by increasing stock holding from 15 days to 27 days.
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.
He stated that the partnership with Petroci further reiterates Sahara Group’s support and commitment to enhancing economic growth in Cote d’ Ivoire and contributes to the UN SDG7 goal which aims at ensuring access to affordable and clean energy.
“We are excited about the project and the huge opportunity it will confer on Cote d’ Ivoire as the leading LPG hub in the sub-region. Sahara Energy continues to support the energy value chain in the nation as a foremost partner,” he said.
Odutola added that Sahara Group remains unwavering in its commitment to enhance capacity, productivity, reliability, safety, profitability, competitiveness, and sustainability in Africa’s energy sector.
“We will continue to explore other investment and partnership opportunities to replicate similar projects across the continent.”
Speaking at the execution of the agreement, Dr. Ibrahima Diaby, Director General Petroci, said that the LPG project in Ivory Coast will serve as a model for projects in the energy sector.
“It is a historic event that will pave the way for a robust and seamless storage, distribution, and supply of LPG. This translates to more clean energy, growth, and productivity in Cote d’Ivoire. We are delighted and look forward to more collaboration with Sahara Energy,” he said.
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