Government Unveils 100,000-Barrel Refinery Expansion to Reduce Oil Imports—–In an effort to lessen Ghana‘s reliance on imported refined petroleum, the Government has unveiled plans to add a new 100,000‑barrel refinery. This project is a key component of a larger strategy to upgrade the Tema Oil Refinery (TOR), even as the government tackles a hefty inherited debt of $570 million.
Speaking at the Legal Green Soirée held at the University of Ghana, Deputy Managing Director of TOR, Edmond Kombat, explained that the expansion is integral to President John Mahama‘s wider strategy for bolstering the nation’s petroleum industry.
He stated: “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.”
Kombat outlined that TOR’s existing facilities, which include a Crude Distillation Unit (CDU) with a capacity of 45,000 barrels per stream a day and a Residual Fluid Catalytic Cracker (RFCC) capable of processing 14,000 barrels per stream a day, have been non-operational since 2019.
This downtime has forced Ghana to depend heavily on costly refined oil imports. He added that revitalizing the refinery could potentially slash the current monthly fuel import bill of $400 million, thus playing a vital role in the nation’s economic turnaround.
“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 noted.
To accelerate the refurbishment, the government is actively pursuing investors and forming strategic partnerships. “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,” Mr. Kombat added.
The planned upgrades are expected to not only boost Ghana’s refining capacity but also to underpin broader economic growth by strengthening the country’s oil and gas sector.
