Crude Oil

Downstream petroleum market exhibit vitality

The downstream Oil Marketing sector picks up gradually in second quarter of the year after marginal turbulence in the first quarter, Mr Gyemfi Amanquah, Chief Operating Officer of GOENERGY Company Limited stated on Monday.

Mr Amanquah told the Ghana News Agency in an interview that trading in the second quarter had started with marginal hinge up due mainly to international market price of the product, which was on the decline as well as the positive trend of the local currency against other currencies.

The GOENERGY Chief Operating Officer explained that Oil Marketing Companies (OMCs) and Bulk Distributing Companies (BDCs) were at their wit’s end during the first quarter as transaction was bad and attributed it to the volatility of local currency, economic shake-up of the new government and international trading pattern.

He said GOENERGY which is a subsidiary of the Ghana Oil Company Limited (GOIL), the nation’s foremost indigenous OMC, is now the country’s major supplier of Gasoline, Gasoil, Marine Gasoil, Liquefied Petroleum Gas (LPG), Domestic Kerosine, and Aviation Turbine Kerosine (JET-A1). “We will continue to ensure stability in the supply of products”.

Mr Amanquah said development in the second indicated that business in the quarter would bounce back as there were signs of prices and cedi stabilisation as well as effort by stakeholders to combat Black Market Petroleum Dealers, which endangered the market.

Mr Amentor Aziakor, Goenergy Operations and Marketing Manager also noted that GOENERGY would continue to undertake prudent ventures to attract investment in order to expand the capacity of existing storage infrastructure and increase the number of depots and storage infrastructure at strategic locations across the country.

He explained that GOENERGY seeks to dominate the sector to protect the national economy from being manipulated by foreign multinationals.

Analysing the BDC sector, Mr Aziakor said the increased mining activities coupled with a vast influx of vehicles and machinery into the country, had improved the demand for petroleum products.

He said the oil field especially the Tano Basin had also boosted exploration activities along the coast of Ghana thereby resulting in increased consumption of marine gas oil, “Ghana, therefore, needs an indigenous BDC with capacity to meet demands and eliminate the potential shortage of any products.

“As shortage of any petroleum product at this point in the nation’s development agenda will derail the marginal gains and set us backward. In the midst of energy volatility, Ghana cannot add shortage of petroleum products”.

GOENERGY was established in February 2014 as a wholly-owned subsidiary of GOIL as a BDC to source for and secure the petroleum products requirement for the company.

GOENERGY started operations in September 2014 by securing and supplying petroleum products for the sole use of GOIL and in May 2015 it extended supplying of products to other OMCs.

GOENERGY, therefore, seeks to establish an active supply infrastructure network and channels that lead to competitive lower cost and ensure product availability as well as improvement of quality throughout the supply chain.

Source: GNA