Introduction

A Feasibility Study for Fuel Storage helps investors assess demand, capacity, costs, location, risks, and returns. Africa's oil demand reached about 4.70 million barrels per day in 2025. OPEC expects demand to reach about 4.81 million barrels per day in 2026.

Fuel storage supports refineries, importers, distributors, airports, and industries. It also improves supply security. Aviaan helps investors assess storage projects through market research, feasibility studies, and financial modelling. This approach supports better investment decisions.

Market Overview & Industry Insights

Africa needs stronger fuel infrastructure. Rising demand is one driver. Import dependence is another. Storage can also reduce supply disruptions. However, project economics depend on location, utilization, logistics, and customer contracts.

• African oil demand: Africa consumed about 4.70 million barrels per day in 2025. Demand was up from 2024.
• 2026 demand forecast: OPEC expects African oil demand to reach about 4.81 million barrels per day in 2026. This represents 2.30% growth.
• Global oil demand: World oil demand reached about 105.15 million barrels per day in 2025.
• African infrastructure need: The IEA says stronger storage and distribution infrastructure is needed to meet Africa's domestic oil and LPG demand.
• LPG import exposure: About 50% of LPG demand in sub-Saharan Africa is imported. This creates a clear need for storage infrastructure.
• Clean cooking investment: The IEA estimates that universal clean cooking access would require about USD 37 billion of investment through 2040. Around one-quarter would support infrastructure, including primary fuel storage.
• Kenya strategic stocks: Kenya maintains strategic petroleum stocks equal to 15 days of consumption.
• LPG supply risk: Recent global disruptions have increased attention on strategic LPG storage and supply resilience in African markets.

The opportunity differs across South Africa, Nigeria, Kenya, Egypt, Morocco, Ghana, Ethiopia, Tanzania, Uganda, Zambia, Côte d’Ivoire, and Botswana.

Coastal markets may offer easier import access. Landlocked markets need stronger transport planning. Each project therefore needs a local market assessment.

Go-To-Market Strategy

Aviaan develops market-entry strategies around customers, location, pricing, and distribution. The approach focuses on commercial viability.

• Market Entry Assessment – Identify high-demand locations and suitable storage zones.
• Customer Segmentation – Map fuel marketers, distributors, airlines, industries, and utilities.
• Pricing Strategy – Assess storage fees, handling charges, throughput fees, and logistics costs.
• Competitor Benchmarking – Compare capacity, location, services, utilization, and customer contracts.
• Commercialization Planning – Build customer, distribution, contracting, and implementation strategies.

Feasibility Study for Fuel Storage

Aviaan evaluates storage projects through commercial, technical, operational, and financial analysis.

• Demand Assessment – Forecast storage needs by fuel type and customer segment.
• Technical Feasibility – Assess tanks, loading systems, pipelines, fire protection, and utilities.
• Operational Feasibility – Review staffing, maintenance, truck loading, marine handling, and safety.
• Financial Viability – Model CAPEX, OPEX, revenue, working capital, and cash flow.
• Investment Analysis – Test IRR, NPV, payback, debt capacity, and investor returns.
• Risk Assessment – Test demand, construction, FX, safety, environmental, and regulatory risks.
• Decision Support – Present clear investment scenarios and recommendations.

Capacity alone does not determine project success. Utilization is equally important. A large terminal can underperform if customer commitments are weak.

Market Research for Fuel Storage

Aviaan combines market data with primary research. This helps create realistic storage demand estimates.

• Customer Analysis – Identify importers, distributors, airlines, industries, and fuel retailers.
• Competitor Intelligence – Benchmark existing and planned storage terminals.
• Market Sizing – Estimate demand by product, location, and customer segment.
• Demand Forecasting – Build base, upside, and downside demand scenarios.
• Pricing Analysis – Review storage fees, handling costs, and transport charges.
• Supply Chain Research – Assess ports, roads, railways, pipelines, and depots.
• Opportunity Identification – Find capacity gaps and underserved markets.

Different fuels also need different storage systems. Diesel and gasoline have different handling needs. LPG requires specialized infrastructure and safety controls.

Business Plan for Fuel Storage

Aviaan develops investor-ready business plans. Each plan links market findings with project economics.

• Financial Modelling – Build CAPEX, OPEX, revenue, debt, tax, and cash-flow models.
• Revenue Projections – Forecast storage fees, throughput income, and handling revenue.
• Operational Planning – Define capacity, staffing, maintenance, loading, and logistics needs.
• Funding Strategy – Assess equity, debt, strategic investors, and development finance.
• Growth Planning – Develop expansion plans based on demand and terminal utilization.

The financial model should include several scenarios. This helps investors understand downside risks.

How Aviaan Uses Primary Research

Public data gives the initial market picture. Primary research adds practical insights.

Aviaan can interview fuel importers, marketers, distributors, airlines, industrial users, port operators, and logistics companies.

Supplier discussions can improve cost estimates. Field visits can assess site access and infrastructure. Competitor research can reveal pricing and service gaps.

Primary research also tests customer assumptions. It can identify preferred contract terms and storage requirements.

These findings improve the feasibility report. They also strengthen financial projections.

Our Experience & Credentials

Fuel storage projects require commercial and financial expertise. They also need infrastructure and operational analysis. Aviaan can combine these capabilities across African storage projects. The following are representative assignment types. They do not disclose confidential client information.

• Fuel Storage Market Research – Nigeria – Assess fuel demand, storage competition, customer segments, and regional capacity needs.
• Fuel Storage Feasibility Study – Kenya – Evaluate capacity, location, logistics, investment costs, and commercial viability.
• Fuel Depot Business Plan – Ghana – Develop demand forecasts, customer strategy, operating plans, and financial projections.
• Fuel Terminal Financial Model – South Africa – Model CAPEX, OPEX, utilization, storage revenue, cash flow, and returns.
• Fuel Storage Investment Advisory – Tanzania – Assess infrastructure needs, market opportunities, customer demand, risks, and investment scenarios.

Conclusion

A Feasibility Study for Fuel Storage helps investors reduce project risk. It connects demand with capacity, location, infrastructure, costs, and returns.

South Africa needs careful analysis of established fuel infrastructure. Nigeria offers a large petroleum market and growing refining activity. Kenya has a formal strategic stock requirement of 15 days of consumption.

Egypt benefits from major energy infrastructure and strategic trade routes. Morocco requires careful analysis of import logistics. Ghana offers opportunities across petroleum distribution and storage.

Ethiopia and Uganda need strong inland logistics planning. Tanzania benefits from coastal access. Zambia needs regional supply-chain analysis.

Côte d’Ivoire has an important role in West African petroleum distribution. Botswana requires detailed analysis of import routes and regional supply.

A successful storage project needs the right location and capacity. It also needs reliable customers and efficient logistics. Aviaan can help investors test these factors before committing capital.

Contact Aviaan to develop a practical feasibility study for your fuel storage investment.

FAQs

1. Why is a feasibility study important for fuel storage?

It tests demand, capacity, location, costs, risks, and expected returns before investment.

2. What does a fuel storage feasibility study cover?

It can cover market research, site analysis, technical assessment, CAPEX, OPEX, financial modelling, and risk analysis.

3. How much does a fuel storage feasibility study cost?

The cost depends on project size, location, fuel type, research scope, and financial modelling needs.

4. Which African countries offer fuel storage opportunities?

Potential markets include Nigeria, South Africa, Kenya, Ghana, Egypt, Tanzania, Morocco, Uganda, Zambia, Ethiopia, Côte d’Ivoire, and Botswana.

5. How does market research support fuel storage investment?

Market research identifies customers, competitors, demand, pricing, logistics, and capacity gaps. These findings improve investment decisions.

Related Service Pages

• Feasibility Study Services
• Business Plan Services
• Market Research Services

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