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Energy

Petroleum Infrastructure Outlook: West Africa

Assessment of petroleum storage and distribution infrastructure requirements across West Africa, including investment opportunities and regulatory frameworks.

1 October 2025 11 min read
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Sector Overview

West Africa petroleum sector continues to evolve, with significant infrastructure investment required across storage, refining, and distribution networks.

Storage Infrastructure

Petroleum storage capacity remains below optimal levels:

  • Nigeria: Storage constraints contribute to fuel supply disruptions
  • Ghana: Tema Oil Refinery requires modernisation and expansion
  • Senegal: Emerging production will require new storage infrastructure
  • Regional: Strategic reserves remain underdeveloped across ECOWAS

    • Distribution Networks

    Challenges include:

  • Pipeline networks requiring maintenance and expansion
  • Road tanker fleet modernisation and safety standards
  • Retail station network development in underserved areas
  • Cross-border distribution coordination

    • Regulatory Environment

  • Upstream licensing: Exploration and production frameworks
  • Midstream regulation: Pipeline and storage permitting
  • Downstream standards: Fuel quality and safety
  • Pricing mechanisms: Government pricing and subsidy frameworks

    • Investment Opportunities

    Key opportunities include strategic storage facilities, pipeline construction, LPG distribution expansion, and refinery modernisation.

    Energy Transition

    Investment decisions should consider the long-term energy transition, including natural gas as a transition fuel and the growing role of renewable energy.