Guinea Explores New Oil Terminal Plans After Devastating Explosion

Government evaluates proposals for a capital city terminal to replace damaged facility; potential public-private partnership in focus.

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Conakry, Guinea – In response to the catastrophic explosion that occurred on December 18, resulting in significant damage to Guinea’s primary oil storage facility, the government is actively reviewing proposals for the construction of a new oil terminal in the capital city, Conakry. This announcement was made by Prime Minister’s advisor, Ismael Nabe, during a roundtable discussion in Dubai on Thursday.

The explosion, which obliterated a substantial portion of the terminal’s storage capacity, had far-reaching consequences, causing a tragic loss of life with 23 casualties and widespread destruction in downtown Conakry. Guinea, a non-oil-producing nation, heavily relies on the importation of refined products, making the restoration of a functional storage facility a matter of utmost importance.Nabe disclosed that the government is carefully evaluating proposals for the new terminal and is committed to reaching a decision promptly. The envisaged project may materialize through a public-private partnership (PPP), and Nabe emphasized that it ranks high on the priority list of the ruling junta, which assumed power in 2021.Acknowledging the potential economic repercussions of the storage capacity loss, the government, in collaboration with the International Monetary Fund, is conducting a thorough assessment. Nabe anticipates a marginal reduction in economic growth for the current year.In an effort to fortify the country’s energy security, authorities are contemplating the construction of up to two new terminals, possibly situated outside the capital in locations such as coastal Kamsar and inland Forecariah. Guinea, with a significant reliance on diesel fuel for its power plants, aims to establish sufficient storage capacity exceeding a year’s worth of fuel reserves.At the same event, Minister of Planning and International Cooperation Rose Pola Pricemou revealed the recent discovery of oil in Guinea. However, Pricemou cautioned that further studies are imperative to ascertain the extent of the reserves and their commercial viability before initiating production. The unfolding developments indicate a concerted effort by Guinea to address the aftermath of the explosion and strategically bolster its energy infrastructure.

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