Ghana: finally, Bost takes delivery of pipes from the United States
Tema – After 12 years of delay, Bulk Oil Storage and Transportation Company Limited (BOST) on Tuesday accepted a batch of pipes from the United States for the extension of the pipeline carrying oil from Tema to Akosombo.
The delay in shipping items purchased in 2008 to Ghana was due to contractual and payment issues between the company and the manufacturer.
The shipment, which arrived at the port of Tema on board MV Universal Africa Lines on Saturday, included 5,400 pipes (12 inches) as well as equipment such as pumps, motors, flowmeters and fiber-optic cables that were initially cost the company $ 63 million, but after being left at the mercy of inclement weather with subsequent deterioration, the pipes had to be refurbished at an additional cost of $ 8 million.
However, the shipping cost was around US $ 2.1 million.
BOST, through the Government of Ghana, secured a facility from the US EXIM Bank in 2008 to expand the capacity of the Tema to Akosombo pipeline from six inches to 12 inches and to improve the storage capacity of the plains of Accra, Kumasi, Buipe and Bolgatanga deposits.
Under the deal, a total of US $ 63.2 million was to be spent on the pipeline, but after 11 years of battling US weather conditions, the company had to shell out an additional US $ 8 million for the sandblasting and coating. of these pipelines before shipping arrangements cost US $ 2.1 million.
BOST’s board chairman, MrEkow Hackman, led a company delegation, including another board member, Ms Joyce AgyemanAttafuah; The Managing Director, Mr. Edwin Provencal, and the Managing Director of Assets and Infrastructures, Mr. Nicholas Samari, receive the equipment from the port of Tema.
Speaking to the media, Mr. Provencal said the pipes arrived at an opportune time when the company reactivated its Bolgatanga depot for export and allowed high volumes of oil to be transferred between Tema and Akosombo for distribution to Buipe, via their river barges to meet the strong demand from the northern sector and landlocked countries.
He assumed that if the $ 63.2 million had been invested in 2008, at a rate of 9% per annum for 12 years, it would have grossed $ 178 million today.
Mr. Provencal said that in line with the president’s vision of making energy affordable and as part of BOST’s four-year strategy (to be operationally effective), the expansion project is expected to help improve the proportion of Tema in Bolgatanga to serve the export market in the northern regions.
He said it would significantly improve the use and revenue from their marine assets, the use of their Mami Water depot which also served as a booster station between Tema and Akosombo.
Mr. Provencal added that this would allow BOST to meet the ever growing demand from landlocked countries in the Sahel region at the lowest possible cost.
He said the pipelines, which will be installed from mid-2022, would take a year and a half to complete at an estimated cost of $ 24 million and employ 500 people during the period.
Mr Hackman, for his part, said the pipelines were effectively abandoned until 2018, when the company’s former chief executive, Mr George Okley, made a point of fixing it.