Advancing BOST’s mandate for sustainable, efficient energy future

Dear Afetsi Awoonor, congratulations on your well-deserved appointment as the Managing Director (MD) of the Bulk Oil Storage and Transportation Company Limited (BOST).

Your role comes with immense responsibility as BOST stands as a pillar of Ghana’s energy security and economic stability.

I wish you every success as you embark on this important journey. 

In light of the strategic importance of BOST, I offer the following recommendations to support your efforts to enhance the company’s efficiency, reduce operational costs, and achieve long-term sustainability.

• Enhancing procurement strategies

BOST’s mandate to ensure a reliable and cost-effective supply of petroleum products can benefit from leveraging localised resources. Procuring Bonny Light Crude Oil (BLCO) for processing at local refineries – such as Sentuo – will not only reduce reliance on imported finished petroleum products but also lower overall costs.

However, recognising challenges in securing a steady BLCO supply, it is vital to develop a secondary strategy for acquiring finished products to maintain uninterrupted supply chains. This approach will ensure energy security while optimising costs.

• Consolidating ‘zonalisation’ policy

Strengthening and consolidating the National Petroleum Authority’s (NPA) ‘zonalisation’ policy for the distribution of refined petroleum products will bring significant benefits to the government, including reducing the financial strain on the Unified Petroleum Price Fund (UPPF), maintaining healthy stock reserves and ensuring consistent nationwide supply of refined petroleum products.

I strongly recommend the creation of a new zone (depot) in the Volta Region to serve Volta, Oti, and neighbouring areas, in addition to the six existing zones (depots): Accra Plains, Mami Water, Akosombo, Kumasi, Buipe, and Bolgatanga. Collaboration with the National Petroleum Authority (NPA) will be crucial in achieving this objective.

The Keta Constituency, my beloved constituency, is well-positioned to host this new depot; however, Ketu North also stands out as a strategic and viable alternative for consideration.
Your appointment, alongside the presence of our comrade at the NPA, offers a unique opportunity to deliver transformative benefitsto our region.

The continued reliance on Bulk Road Vehicles (BRVs) for transporting petroleum products is both costly and unsustainable. BOST can lead a transition to more efficient alternatives by prioritising rail and pipeline networks.

Key projects to consider include: Pipeline infrastructure development: Reviving the Accra Plains – Mami Water – Akosombo Pipeline to reduce transportation costs significantly. Addressing encroachment and operational deficiencies is crucial for its reactivation.

Fully utilising the Debre–Bolga Pipeline by ensuring adequate stock levels at the Debre and Buipe depots. This will also position Ghana as a major exporter of petroleum products to Burkina Faso, Mali and Niger.

Collaboration

Partnering VLTC through Build-Operate-Transfer (BOT) arrangements to secure funding for barges and tugboats will strengthen waterway transportation.

Rail petroleum bullet coaches

Revisit the idea of rail bullet coaches for petroleum transport, securing funding through BOT arrangements to improve cost-efficiency.

Building local capacity, investing in technology

As a national institution, BOST must foster the development of local expertise. Transitioning from reliance on external contractors, such as Nigeria’s TSL, to managing terminals locally, will empower Ghanaians and build domestic capacity.

Additionally, adopting advanced stock management software will improve product security, address discrepancies, and restore confidence among stakeholders.

These recommendations represent opportunities for BOST to redefine its role in Ghana’s energy sector and serve as a model of efficiency and innovation. Your expertise and commitment to excellence place you in an ideal position to drive this transformation.

Be assured of my support and readiness to collaborate as you navigate this critical responsibility. Together, we can build a resilient and sustainable energy future for Ghana.

Senanu F. Dekutse, 
Downstream Petroleum Consultant/Former GM, Sephem Oil.