BOST Takes Delivery of US Tema-Akosombo Pipelines After 12-Year Setback | Economic news
After a twelve-year delay, Ghana, through Bulk Oil Storage and Transportation Company Limited (BOST), has taken delivery of 12-inch pipelines from the United States of America, which are expected to be used to expand the line of transport of oil from Tema to Akosombo. .
The initial cost of the pipelines to Ghana was US $ 63.2 million, however, an additional US $ 8 million was used to rehabilitate the abandoned pipelines and for the settlement agreement. US $ 2.1 million was spent to ship the hoses, bringing the total cost of securing the hoses to US $ 73.78 million.
Boost expected for BOST
The pipelines that were received by BOST in Ghana on Friday, November 19, 2021, will increase the capacity of the Tema-Akosombo pipeline from 6 inches to 12 inches, thereby improving the delivery of petroleum products to the country.
The pipeline procurement processes from American Tank & Vessel Inc. (AT&V) began in 2009 after Exim Bank in the United States guaranteed a loan of $ 79.4 million to cover the sale to the export, as well as related local project costs in Ghana.
Specifically, it was to support the expansion of the oil storage capacity at the Mami Water Depot from 120,000 tonnes to 230,000 tonnes, and the construction of two 70-kilometer pipelines to transport the oil to the interior regions of the country. Ghana.
Decision to repair
BOST Managing Director Edwin Provencal in September 2021 explained that the additional $ 8 million cost that was used to repair damaged pipelines was worth it because of the huge expansion the pipelines will bring to the transportation of oil in the country.
âWe started supplying these pipelines in 2009 with an EXIM facility. Fast forward to today, pipelines are still stranded in the United States of America, in Houston to be precise. My two predecessors started sandblasting and repairing the pipes. The good news is that by the end of August 2021 the shipping of the pipeline will start, âthe managing director of BOST said at the time.
âWe hired a logistics provider to visit the pipe site and assess the facilities, and the company tells us that the pipes are of good quality and ready to ship to Ghana. Unfortunately, one hundred and nine of them were damaged and an additional $ 8 million had to be used to repair them, but the rest are all in good condition, âhe added.
Bulk Oil Storage and Transportation Company Limited (BOST) was incorporated in December 1993 as a limited liability company under the Companies Act 1963 (Act 179) with the Government of Ghana as the sole shareholder. BOST’s mandate is to âdevelop a network of storage tanks, pipelines and other bulk transport infrastructure across the country.
BOST is also mandated to lease or lease part of the storage facilities to enable it to generate income, maintain strategic reserve stocks for Ghana, own, manage and develop a national network of pipelines and storage depots, manage the National Petroleum Authority’s (NPA) “zoning” policy and develop natural gas infrastructure across the country.
In this regard, BOST is responsible for building up strategic reserve stocks to meet a minimum of six (6) weeks of national consumption in the short and medium term and to bring the level of stock to twelve (12) weeks in the long term. .
To adequately fulfill its mandate, BOST has developed a network of storage and pipeline infrastructure across the country. The Company currently has six (6) Depots nationwide.
These are located in the plains of Accra, Mami Water, Akosombo, Kumasi, Buipe and Bolgatanga. Pipelines connect the Tema Oil Refinery (TOR) to the Accra Plains depot, which in turn connects to the Mami water depot and terminates at the Akosombo depot.
Source: Daniel Adu Darko / Peacefmonline.com
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