Ivory Coast seeks future as West African refining hub with new 170,000 b/d plant

Ivory Coast refining capacity could grow to four times its current throughput under plans by SIR, its state-owned refiner, as the country has sought to develop into a leading energy hub in the West African region.

Speaking at ARDA Week 2025 in Cape Town April 9, Raphael Souanga, Director of Development and Energy Transition at SIR, unveiled plans to develop a new 170,000 b/d refinery in Ivory Coast, saying that preliminary surveys had been completed and 10 companies have been shortlisted as potential partners.

On the sidelines of the event, market sources said that the new refinery had received approval, but said that the next steps for planning remained unclear.

The new project would add to SIR's existing 75,000 b/d refinery in Abidjan, which has already been earmarked for a capacity upgrade to 100,000 b/d.

The existing refinery is already considered one of the most efficient plants in Sub-Saharan Africa, and has made Ivory Coast a rare net exporter in the region.

However, with one of the highest GDP growth rates in Africa, Ivory Coast has attracted growing attention among energy investors as a source of long-term demand growth, prompting SIR to eye more ambitious growth plans.

According to S&P Global Commodity Insights estimates, the country's oil product demand grew roughly 6% in 2024 to around 65,000 b/d, and could increase to almost 80,000 b/d by 2030.

Its existing refinery has relied on crude imports from Nigeria and South America to supply its existing plant, according to S&P Global Commodities at Sea(opens in a new tab) data, and drew an average of 25,000 b/d of supply on Suezmax tankers in 2024.

Transition plans

Speaking at the event, Souanga reiterated aims to make Ivory Coast a hub for high-quality fuels through ambitious decarbonization and expansion plans.

The company has completed front-end engineering design work on a new diesel desulfurization unit at the existing refinery, and plans to begin construction in May 2025, Souanga said.

The new diesel unit is central to the refiner's plans to improve the quality of its fuel supply, providing it with the capability to produce diesel with a sulfur content of 10 parts per million, well below current levels of over 1,000 ppm.

SIR was last targeting a 2028 commissioning date to start the unit. By the same date, it plans to reduce the chemical content of its gasoline with a new reformulation unit, which would reduce benzene levels by around a fifth to under 1%. A feasibility study on the reformulation unit has been completed, Souanga said.

As part of its energy transition strategy, SIR also plans to switch its energy source from oil-powered electricity to gas-based supply, eyeing associated emissions reductions of over 20%.

Investment challenge

However, despite strong growth prospects, SIR continues to battle to attract investment.

In February, France's TotalEnergies announced the sale of its stake in the existing SIR refinery to Africa-focused Sahara Group, ending several decades of activity in the sector in a move it called a strategic pivot.

Speaking at the ARDA conference, Jerome Espinasse, head of trading at Sahara, said that the company was happy to be a part of the transition plans at SIR but that financing quality-focused upgrades across its portfolio remains a challenge.

Typically, financing from development funds such as DFC, IFC and the African Development Bank has been essential to the success of long-term projects that don't offer an immediate payback, he said, offering capital investment without repayment conditions.

SIR previously estimated a total spend of EUR 1 billion ($1.1 billion) on its upgrade plans. It was not available for further comment on revised estimates.