Ghana: TOR, Sentuo Refinery Likely To Supply 40% Of The Market – NPA Boss

Ghana’s downstream petroleum regulator, the National Petroleum Authority (NPA), says the restart of crude oil refining at the Tema Oil Refinery (TOR) could deliver significant economic benefits, including reduced pressure on the local currency and improved fuel pricing dynamics.

Speaking on the development, the Chief Executive Officer of the NPA, Mr. Godwin Edudzi Tameklo Esq., hailed the resumption of operations at the country’s premier refinery, noting that local refining would ease pressure on the Ghanaian Cedi and positively influence the petroleum pricing regime.

The restart of TOR, following major rehabilitation works after more than six years of inactivity, has reignited optimism among Ghanaians, particularly fuel consumers.

Currently, the refinery is processing about 28,000 barrels per stream day at its Crude Distillation Unit (CDU).

Management plans to commission a newly installed furnace to integrate with the CDU, increasing refining capacity to 45,000 barrels per stream day, with further expansion to 60,000 barrels per stream day in the medium term.

Contributing to a discussion on the resumption of operations at the Tema Oil Refinery on Accra-based TV3’s New Day programme on Monday, December 29, Mr. Tameklo said that with TOR resuming crude refining alongside the Sentuo Refinery, Ghana could significantly reduce the importation of finished petroleum products.

“Sentuo is doing extremely well and has supplied almost 20 per cent of the market over the past few months. I strongly believe that if TOR is able to ramp up production to about 45,000 barrels per day, TOR and Sentuo alone could supply around 40 per cent of the market. That would be significant and would greatly project the country well,” he said.

He added that increased local refining would have a positive impact on fuel pricing and foreign exchange demand.

“One of the key benefits is that it will greatly influence pricing dynamics because we will be importing less. Even more importantly, the foreign exchange required to import finished products will reduce, and the pressure on the Ghana cedi will ease significantly. The economic impact is substantial. Once we are able to do more of these things locally, it strengthens the economy and reduces pressure on the cedi,” Mr. Tameklo said.