Fuel Trade in Africa: A Process Overview

Global fuel traders play a pivotal role in the oil supply chain, sourcing, transporting, and distributing petroleum worldwide. Switzerland dominates with Vitol, the world's largest independent trader handling over 7 million barrels daily; followed by Trafigura, blending Swiss and Singaporean operations; Glencore, a mining-trading giant; Gunvor; and Mercuria. The UK contributes BP and the Netherlands and UK share Shell, while France's TotalEnergies focuses on energy transition. US-based ExxonMobil and Chevron emphasize upstream development and trading. Russia's Rosneft (currently subject to US Sanctions) and China's PetroChina, round out the key players, ensuring global liquidity amid geopolitical shifts.

Crude oil refining transforms raw hydrocarbon into usable products through primary and secondary processes. Primary refining begins with atmospheric distillation: crude is heated in a tower into separate fractions (parts) by boiling points— namely light gases (LPG - Liquefied Petroleum Gas), naphtha, gasoline, kerosene, diesel, and heavy residues like fuel oil and bitumen.

Secondary processing enhances yield and quality. Cracking breaks heavy molecules into lighter ones via thermal viscosity breaking (visbreaking) or catalytic methods, such as Fluid Catalytic Cracking (FCC), producing more gasoline and diesel. Treatment removes impurities like sulfur via hydrotreating, producing clean fuels.

In Africa, tank farms store refined products for distribution. Zimbabwe's National Oil Infrastructure Company, (NOIC) operates depots in Harare (Msasa) and Mutare (Feruka), with capacities exceeding 100 million liters. Zambia's Ndola facilities, linked to the TAZAMA pipeline hold diesel and gasoline. Lagos, Nigeria, boasts over 50 farms like Bulk Oil Terminal (Apapa) with millions of liters capacity. The DRC hosts Puma Energy's Matadi terminal and Hass Petroleum's depots in Lubumbashi. Morocco's Mohammedia terminal & Horizon terminals in Tangiers, store fuels amid refinery upgrades of 12bn & 1,8m cubic metres respectively, by 2030.

Senegal's new Akwa Group facility in Bargny-Sendou adds 100,000 cubic meters and their Dakar Refinery adds another 220 000 cubic metres. Togo's Lomé port emerged as one of the Western Africa Fuel Hubs, especially for the likes of United PetroGroup. Additionally, Dangote's Oil refinery in Lagos provides processing of 450 000 barrels per day, ramping up to 650 000 barrels per day. Dangote also plans Namibian storage which will supply southern Africa, including Zambia, Zimbabwe, and DRC parts, further increasing Namibia's geopolitical importance.