Clean Fuels Initiative Harmonisation of Standards
African Refiners & Distributors Association ﺔﯾﻌﻣﺟ ا نﯾررﻛﻣﻟ او نﯾﻗوﺳﻣﻟ ﻓﻷا ﺔﻗرﺎ ﻷ Association des Raffineurs & des Distributeurs Africains
The voice of african downstream oil Engr Tony Ogbuigwe La voix de l'aval pétrolier africain توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا Adviser to ARA for ECOWAS Region
Ghana International Petroleum Conference (GhipCon 2018)
8th June 2018
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 1 Presentation outline
• Introduction to the ARA & AFRI Road Map • Some Success Stories • ECOWAS & ARA Consultation • Where are we? • Some difficulties • Questions
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 2 Introduction to the ARA & the AFRI Road Map
The voice of AfricanThe voice downstream of African oil downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative La3 voix de l'aval pétrolier africain توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا طﻧﻟا ﺻ و The ARA
• African Refiners Association established in 2006
• Name changed to “African Refiners & Distributors Association” in 2017; acronym remains ARA
• Not-for-Profit Association that assists African refiners, importers and distributors to better understand and overcome the challenges of the African downstream
• ARA’s over-riding objective is sharing global best practice in environment, health and safety and capacity building - including youth employment and training
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 4 A Pan-African Association • 15 out of the 23 oil refining companies in Africa are Members – representing 27 out of the 35 oil refineries currently operating in Africa • 61 non-refining African companies are Members - importers, terminals, ship charterers, energy regulators, distributors….
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 5 AFRI specifications road map
• Started in 2006 as a response to lead removal from gasoline; to improve Public Health and reduce mortality rate related to exhaust emissions and air quality • Developed into a product quality specification road map for Africa: ü With an overall objective to improve air quality; ü To aid refinery investment planning; ü To establish a road map towards global product quality to match the evolving car fleet, African climatic conditions and emission standards; ü To consider engines and fuel as one system for improving standards for exhaust emissions; ü To harmonise regional fuel specifications along natural supply chains to reduce bulk transportation costs and to optimise regional logistic infrastructure; to harmonise taxes, excise duties and subsidies to help reduce smuggling and adulteration of fuels. • The regional harmonisation of fuel quality, taxes and duties is often overlooked due to the sulphur debate; but it remains a major part of the AFRI road map and ARA policy.
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 6 Some history: First ARA meeting March 2006
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 7 Some history: First ARA meeting March 2006
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 8 Some history: First ARA meeting March 2006
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 9 Harmonisation requires Political Will • The multiplicity of sources and supply points of oil products remains a challenge to harmonisation for our region
• With many different legacy cultures in neighbouring countries for setting, controlling and measuring the quality of fuel marketed in the region, political will is essential for harmonisation to succeed
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 10 Some Success Stories
The voice of AfricanThe voice downstream of African oil downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative La11 voix de l'aval pétrolier africain توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا طﻧﻟا ﺻ و East African Community (EAC)
• The East African Community (EAC) is the regional intergovernmental organization of the Republics of Burundi, Kenya, Rwanda, Uganda and the United Republic of Tanzania with its Headquarters in Arusha, Tanzania. • They first lay out a plan for trade (not just fuels): ØSince 2003 EAC has strived to put in structures in place to harmonize standards of commonly traded goods and services , methods of test, codes of practice and measurements to facilitate both regional and international trade; ØThere is established regional law on standards; East African Standardization, Quality assurance, Metrology and Testing (SQMT) Act, 2006 which commenced in August 2007.
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 12 East African Community (EAC)
• The EAC law provides for the Quality Assurance, metrology and testing of products produced or traded in the community, protection of health and safety of the society and establishment of regional structures (accreditation and standards);
• Regional and national quality control organisations coordinate: ØRegional bodies undertake coordination and promotion of standards to facilitate trade; ØPartner States' national standards bodies develop EAC standards
• The plan for fuel harmonisation & improvement was announced three years in advance and delivered on time.
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 13 Southern African Development Community (SADC)
• Sounds familiar?
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 14 Southern African Development Community (SADC)
• What are they doing about it?
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 15 Southern African Development Community (SADC)
• Will they achieve it?
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 16 SADC
• Not so well coordinated as EAC ØBut progress has surprised many
• South Africa no longer sets the regional specifications benchmark; - Malawi, Mozambique, Madagascar, Zimbabwe, and Namibia are no longer waiting for change.
• Can West Africa follow their example?
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 17 ECOWAS & ARA Consultation
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 18 ECOWAS Roadmap
• Adopt AFRI-4 for implementation by 2020, and AFRI-5 by 2030
• To recommend vehicle emission levels to be applied in the region; • To develop a harmonised regional framework, taking into account the realities of the region, and propose an action plan for implementation; • To develop two draft regional guidelines: one on oil product specifications (gasoline and diesel) and the other on motor vehicle emission limits; • Study launched by ECOWAS/ARA/APPA to achieve harmonisation of product quality and vehicle exhaust limits across the region.
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 19 Where are we?
The voice of AfricanThe voice downstream of African oil downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative La20 voix de l'aval pétrolier africain توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا طﻧﻟا ﺻ و Where Are We?
• August 2017, Ghana has adopted 50ppm sulphur in gasoline and diesel
• Nigeria has signified intention to adopt a staged approach: Ø50ppm sulphur in diesel from July 2018 Ø300ppm sulphur in gasoline from 1st October 2018 Ø150ppm sulphur in gasoline from 1st October 2019
• Cote D’ivoire and Senegal prefer to follow ARA timetable
• The other countries in the region will follow the decision of their suppliers
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 21 Some Difficulties
• Products supplied to the market from multiplicity of sources ØLocal refineries ØImports from different uncoordinated sources
• Often no specification limit for key parameters – worse than a poor spec? • Test methods not always defined or up to date – critical need for harmonisation • Lack of equipment for certain tests – how many parameters are tested on imports on arrival?
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 22 WAF Gasoline Specifications
WAF gasoline specifications* Specification Basis Burkina Faso Côte d’Ivoire Ghana Mali Mauritania Nigeria Senegal Togo RON Min 91 Min 91 Min 95 Min 91 Min 95 Min 91 Min 91 Min 91 Sulphur ppm Max 500 Max 150 Max 50 Max 500 Max 1000 Max 1000 Max 1000 Max 2500 Lead g/l Max 0.013 Max 0.013 Max 0.005 Max 0.013 Max 0.013 Max 0 Max 0.013 Benzene pct-vol Reported Max 5 Max 1 Max 2 Max 2 Ethanol pct-vol Max 0 Max 5 Aromatics pct-vol Reported Max 35 Colour Quality Colourless Pale Yellow Green Colourless Clear Ox blood red Colourless Pale yellow Manganese (MMT) mg/ltr Max 18 Olefins pct-vol Reported Reported Oxygen pct-mass Max 0 Max 2.8 Max 2.7 Oxygenates pct vol Max 0 Max 0 Max 10 *National domestic specifications
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 23 Diesel Specifications-1
Gasoil Specifications* Specification Basis Burkina Faso Côte d’Ivoire Ghana Liberia Mali Mauritania Nigeria Senegal Togo Sulphur ppm Max 10,000 Max 3,500 Max 50 Max 3,000 Max 10,000 Max 2,000 Max 3,000 Max 5,000 Max 10,000 Density (kg/l) kg/l Min 0.82 Min 0.82 Min 0.82 Min 0.82 Min 0.82 Min 0.82 Min 0.82 Min 0.82 Min 0.82 Max 0.89 Max 0.88 Max 0.845 Max 0.88 Max 0.88 Max 0.86 Max 0.87 Max 0.88 Max 0.865 Cetane Index Min 45 Min 45 Min 46 Min 45 Min 45 Min 46 Min 47 Min 45 Min 45 Cetane number Reported Min 51 Diesel Index Min 48 Min 48 FAME pct-vol Max 7 Lubricity microns @ 60°C Reported Max 460 Polycyclic Aromatics Quality Reported Carbon Residue pct-mass Max 0.15 Max 0.15 Max 0.3 Max 0.15 Max 0.15 Max 0.15 Max 0.15 Max 0.15 CFPP °C Max -1 Cloudpoint °C Max 5 Max 5 Reported Max 5 Max 4 Max 7 Max 3 Colour Qualitative Max 5 Max 3 Reported Max 2 Max 3 Max 2 Max 3 Max 3 Max 3 Copper Corrosion Quality 1b Copper Corrosion strip Max 1 Max 1 Max 1 Max 1 Max 1 Flashpoint °C Min 61 Min 55 Min 55 Min 66 Min 61 Min 55 Min 66 Min 55 Min 66 *National domestic specifications
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 24 Diesel Specifications-2
Gasoil Specifications* Specification Basis Burkina Faso Côte d’Ivoire Ghana Liberia Mali Mauritania Nigeria Senegal Togo Oxidation Stability g/m³ Max 25 Max 25 Particulate Quality Reported Particulatecontamination Size Quality Reported Distribution Pour Point °C Max 6 Max 5 Sediment pct-mass Max 0.01 Max 0.01 Max 0.01 Max 0.01 Max 0 Max 0.01 Max 0.01 Max 0.01 Total Acid mg KOH/g Max 1 Max 1 Reported Max 1 Max 1 Max 0.5 Max 1 Max 1 Water & Sediments pct-vol Max 0.05 Water (pct mass) pct-mass Max 0 Water (pct vol) pct-vol Max 0.05 Max 0.05 Max 0.02 Max 0.05 Max 0.05 Max 0.05 Max 0.05 Max 0.05 *National domestic specifications
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 25 Diesel Specifications- 3
• Many minor differences on distillation and viscosity specification limit
Gasoil Specifications* Specification Basis Burkina Faso Côte d’Ivoire Ghana Liberia Mali Mauritania Nigeria Senegal Togo Distillation °C @ 90% Max 365 Distillation pct @ 250°C Max 65 Distillation pct @ 350°C Min 85 Distillation pct @ 357°C Min 90 Min 90 Min 90 Distillation pct @ 360°C Min 90 Min 90 Min 95 Distillation pct @ 362°C Min 90 Evaporation pct-vol @ Min 85 Final Boiling Point °C Max 385 Max 385 Kinematic Viscosity cst Min 1.6 Max 5.9 Kinematic Viscosity cst @ 37.8°C Min 1.6 Min 1.6 Min 1.6 Max 5.9 Max 5.9 Max 5.9 Kinematic Viscosity cst @ 38°C Min 1.6 Min 1.6 Max 6.5 Max 5.9 Kinematic Viscosity cst @ 40°C Min 1.6 Min 2 Min 2 Max 5.9 Max 4.5 Max 6 *National domestic specifications
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 26 Some questions
The voice of AfricanThe voice downstream of African oil downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative La27 voix de l'aval pétrolier africain توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا طﻧﻟا ﺻ و Questions
• Has the pre-occupation with sulphur levels moved the region away from focussing on harmonisation of fuel quality, taxes and duties?
ØIf so, did the EAC and SADC do better by planning to put the harmonisation processes in place first? ØShould ECOWAS place harmonisation and free trade policies over and above fuel quality improvement at this stage? ØShould the harmonised fuel product specifications campaign be led by the national organisations?
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 28 Questions
• Is harmonisation an urgent priority?
ØIs it ECOWAS that must act to achieve harmonisation and to stop multiple standards in the same sub-region? ØDoes the Political Will exist to realise harmonisation across the region, both in product quality and in taxes and duties? - Or will we be constrained once again by the electoral cycle?
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 29 Thank you
The voice of African downstream oil La voix de l'aval pétrolier africain Engr Tony Ogbuigwe - ARA ECOWAS representative توﺻ بﺻﻣ ا ﻟ طﻔﻧ ﻲﻘﯾرﻓﻷا 30