- President Nana Akufo-Addo has commissioned a private oil refinery, Sentuo Oil Refinery Limited, at Tema
- The refinery is part of the Chinese government’s Belt and Road Development Strategy for the oil and gas industry in China and Africa
- The director of the Centre for Environmental Management and Sustainable Energy, Benjamin Nsiah, told YEN.com.gh this could lead to stable fuel prices
President Nana Akufo-Addo has commissioned a $2 billion oil refinery, Sentuo Oil Refinery Limited, at Tema.
The refinery is on 100 acres of land and falls under the One District, One Factory (1D1F) policy.
It has the backing of the Chinese government and was conceived from the Chinese government’s Belt and Road Development Strategy for the oil and gas industry in China and Africa.
The new refinery could refine five million barrels of oil annually.
It will produce petrol, aviation kerosene, diesel, asphalt and lubricating base oil.
The project's first phase will pump out 40,000 barrels of refined products per day.
It is expected to ramp up to 100,000 barrels daily when the second phase is completed in 2025.
President of Guyana Mohamed Irfaan Ali, Speaker of Parliament Alban Bagbin, captains of industry and CEOs of regulatory bodies were present at the commissioning.
President Akufo-Addo said the new refinery was pivotal in securing Ghana's collective energy future.
The commissioning of this refinery comes amid the struggles of the state-owned Tema Oil Refinery and plans by the government to lease it to a private company.
President Akufo-Addo acknowledged this, saying the government was committed to fully operationalising TOR.
Stable fuel prices expected
The director of the Centre for Environmental Management and Sustainable Energy, Benjamin Nsiah, told YEN.com.gh he expects the refinery to stabilise petroleum product prices in Ghana.
This is because certain price elements will be reduced.
“Cost of freight of finished products differ from the cost of freight of crude products so for that matter, refining the products locally, cost of freight may be eliminated or reduced based on the new supply arrangement.”
Nsiah also noted that TOR can learn or collaborate with the new refinery.
Plan to lease TOR
The government plans to lease the refinery to Torentco Asset Management Group for $22 million over six years.
YEN.com.gh reported that civil society groups and experts in the downstream petroleum sector have also called on the government to halt the lease of the refinery.
For instance, the Chamber of Oil and Petroleum Consumers said Torentco Asset Management lacks experience running a refinery.
However, some workers at the refinery support the deal and have backed the government's moves. Torentco planned to refine up to 8 million barrels of oil annually and pay $1 million annually to the state as rent under the deal.
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