Benin wants to set up an oil refinery and has established a partnership with a firm responsible for evaluating the advisability of this project. If successful, the country will become self-sufficient in petroleum products and could even take the opportunity to supply other countries in the region.
On Wednesday, the report of the Council of Ministers in Benin indicated that the country wants to acquire an oil refinery. For this, the government has requested the support of a specialized firm to carry out the necessary feasibility studies. The firm will analyze, among other things, the market prospects for 2030 and the economic feasibility of the infrastructure.
“The project to build a refinery in Benin as part of a public-private partnership arises from the will of the State, to ensure better satisfaction of our country’s domestic consumption of petroleum products and to contribute to the refueling of those in the sub-region ” , indicates the document.
The country is not an oil producer, but could get supplies from its Nigerian neighbor to supply its factory. For its part, Nigeria, which only manages to refine 10% of its production, could buy petroleum products from Benin instead of resorting to more expensive imports, coming from suppliers located much further away.
Source: Agence Ecofin