The Government of Ghana has announced plans to construct a second mooring system in Tema, known as the Conventional Buoy Mooring (CBM), to improve the efficiency of fuel imports and enhance supply security in the downstream petroleum sector.
Minister for Energy and Green Transition, John Jinapor, made this disclosure emphasizing that the project is a crucial step in reducing inefficiencies and minimizing the high costs associated with fuel imports.
Currently, Ghana operates with only one CBM, which serves as the primary facility for discharging both petrol and diesel imports. Minister Jinapor highlighted the increasing fuel demand in the country, stating:
“Demand has increased by 186% since 2006, and yet we depend on only one mooring system.
“This has led to huge demurrage costs, supply challenges, and unreliable fuel security.”
Minister for Energy and Green Transition, John Jinapor
The growing demand for petroleum products necessitates additional infrastructure to enhance flexibility, reduce supply bottlenecks, and lower operational costs for fuel importers.
By constructing a second CBM, the government aims to expand the nation’s fuel-handling capacity, reduce congestion, and ensure uninterrupted supply.
Jinapor stated, “The sector is bleeding, and something must be done in order to curtail the bleeding.” He explained that this situation requires “very tough but necessary decisions” to prevent further strain on the nation’s economy.
The construction of the second mooring system in Tema is expected to alleviate some of these pressures by facilitating faster fuel discharge, reducing demurrage costs, and enhancing supply security, especially during peak demand periods.
In addition to addressing operational inefficiencies, the CBM project is also seen as a move towards greater flexibility in the country’s fuel distribution system.
Ghana’s dependence on a single mooring system has exposed it to the risk of supply disruptions in times of system failure or delays.
With a second mooring system, the country will be better positioned to respond to unforeseen challenges, improving the overall resilience of the energy infrastructure.
In addition to the CBM project in Tema, the government plans to construct additional fuel storage facilities in Takoradi. The objective is to create supply flexibility and provide a more robust fuel distribution network across the country.
Reducing Expenditure in the Energy Sector
Another crucial aspect of Jinapor’s address was the emphasis on containing expenditure within the energy sector, both in petroleum and power.
The Minister revealed that Cabinet has approved a series of measures to regulate expenditure in the energy sector, particularly within petroleum and power. He stated:
“We will be directing all agencies to halt all kinds of expenditures that are not critical.
“Even for those deemed critical, they will need to seek approval before proceeding.”
Minister for Energy and Green Transition, John Jinapor
This decision comes as part of efforts to curtail financial losses in the sector and ensure sustainable management of Ghana’s energy resources. The government recognizes that the energy sector is under financial strain, requiring bold reforms to maintain stability.
This move is part of a broader strategy to ensure fiscal discipline and reduce inefficiencies in the management of the sector’s finances.
“We are going to ensure that every expenditure is justified and critical to the operation of the sector.”
Minister for Energy and Green Transition, John Jinapor
The minister’s comments suggest that a more stringent approach will be adopted in managing sector funds, as the government seeks to prioritize long-term sustainability over immediate short-term gains.
Jinapor stressed that these measures are necessary to stem the financial hemorrhaging the sector has experienced in recent years. “The sector is bleeding,” he reiterated, “and we need to do everything we can to curtail that.”
The government’s decision to construct a second mooring system in Tema marks a strategic intervention in Ghana’s energy sector.
Additionally, expanding storage capacity in Takoradi and engaging the private sector in fuel distribution further demonstrates the government’s commitment to strengthening energy infrastructure and promoting sustainable growth.
As Ghana continues its energy transition journey, ensuring reliable and affordable fuel supply will be a key pillar in sustaining economic development and industrial expansion.
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