The government plans to construct a new 100,000-barrel refinery as part of efforts to expand the Tema Oil Refinery (TOR) and reduce Ghana’s dependence on imported refined oil, despite inheriting $570 million in debt.
Speaking to JoyNews at the Legal Green Soirée held at the University of Ghana, the Deputy Managing Director of TOR, Edmond Kombat, said the move aligns with President John Mahama’s vision to strengthen the country’s petroleum sector.
“There are plans to expand the refinery’s capacity by constructing an additional 100,000-barrel facility to meet the country’s growing demand for refined oil,” he stated.
TOR’s Crude Distillation Unit (CDU), which has a capacity of 45,000 barrels per stream day (bpsd), and its Residual Fluid Catalytic Cracker (RFCC), with a 14,000-bpsd capacity, have been non-operational since 2019, leaving Ghana reliant on costly refined oil imports.
Mr Kombat stated that reviving the facility could slash the $400 million spent monthly on fuel imports and play a key role in the country’s economic recovery.
“The refinery has been dormant since 2019 and is in a state of disrepair, requiring extensive maintenance. TOR is a strategic national asset, and prioritising its revival will significantly contribute to the country’s economic recovery. If we restore TOR to its current capacity, we can cut in half the $400 million spent monthly on importing refined oil.”
He further disclosed that the government is actively engaging investors to accelerate TOR’s revival and ensure its full operationalisation within the next nine months.
“Many investors have expressed interest in partnering with us to manage the facility, and the government remains committed to investing in the refinery. We are developing a roadmap for turnaround maintenance and expect TOR to be operational within the next nine months,” he added.