BOST set to commence installation of 12-year delayed pipelines; projected to cost company $24m
Bulk Oil Storage and Transportation (BOST) Company Limited is set to commence the installation of the 12-inch pipelines delayed for over 12 years in the United States by American firm, American Tank and Vessel Inc. (AT&V).
The installation of the 70 kilometre pipeline expansion project from Tema to Akosombo according to the Managing Director of BOST, Edwin Provencal, will commence mid-2022 and is expected to be completed by the end of 2023.
Speaking to the media and showcasing the pipelines the company had taken delivery of at the Tema Port, the BOST MD noted the installation of the pipelines is expected to cost the company some $24 million.
According to the MD, the installation of the pipelines would enhance the storage capacities of the Accra Plains, Kumasi, Buipe and Bolgatanga depots.
“It is expected that BOST will through the installation of this new line attain its target of meeting the ever-increasing demand of the landlocked countries in the Sahelian region at the lowest possible transmission cost,” he stated.
He said, in line with the President’s vision of making energy affordable, and as part of the four-year strategy of BOST to become operationally efficient, the Company looked forward to improving the proportion of product volumes carried through the cheapest transportation channel – the barges and pipelines.
“With an initial refurbishment of the existing 6-inch line between Tema and Akosombo and the Buipe Bolgatanga Pipeline, which stretches more than 270 kilometres, we are confident that this new pipeline will increase the volume from Tema to Akosombo by three-fold to increase the turn-around time of the barges. This will tremendously improve the utilisation and turnover of our marine assets,” he added.
Speaking further to the media, Mr Provencal noted the pipelines are also expected to increase the utilisation of the Mami Water depot, which also served as a booster station between Tema and Akosombo.
He reiterated BOST’s commitment to ensuring the availability of petroleum products at the right prices to drive the economy in the right direction, saying, “In the next few quarters, the Company is poised to increase its storage infrastructure to increase the volumes of product it can store for the nation to meet our demands during odd times.”
Adding that a properly functioning BOST would surely serve as an instrument for maximising gains to be derived from the Africa Free Trade Continental arrangement through the importation and re-export of petroleum products in the West African sub-region, which would shore up reserves and contribute to the stability of our exchange rate.
He further noted that the construction of the pipeline would create at least 500 new jobs in the economy.
In total, the 12-inch pipelines received by BOST number 5,400 with 100 of the pipelines destroyed as a result of the 12-year corrosion period.
The pipelines installation is expected to be used to expand the petroleum transportation line running between Tema and Akosombo.
The initial cost of the pipes to Ghana was US$63.2 million. However, an additional $8 million was used to refurbish the pipes after they were abandoned and to cover the cost of a settlement agreement.
A further sum of $2.1 million was spent to ship the goods, bringing the total cost of securing the pipeline to $73.78 million.
The Bulk Oil Storage and Transportation Company Ltd was incorporated in December 1993 as a private limited liability company under the Companies Act 1963 (Act 179) with the Government of Ghana as the sole shareholder. BOST has the mandate to “develop a network of storage tanks, pipelines and other bulk transportation infrastructure” throughout the country.
BOST is also mandated to rent or lease out part of its storage facilities to enable it to generate income, keep strategic reserve stocks for Ghana, own, manage and develop a national network of oil pipelines and storage depots, manage the “zonalisation” policy of the National Petroleum Authority, and develop natural gas infrastructure throughout the country.
In this regard, BOST is responsible for building strategic reserve stocks to meet a minimum of six weeks of national consumption in the short and medium-term and to increase stock level to 12 weeks in the long term.
To fulfil its mandate, BOST has developed a network of storage and pipeline infrastructure across Ghana. The company currently has six depots nationwide.
These are located in the Accra Plains, Mami Water, Akosombo, Kumasi, Buipe and Bolgatanga. A pipeline links Tema Oil Refinery (TOR) to the Accra Plains Depot, which in turn is linked to the Mami Water Depot, ending at the Akosombo Depot.
