Government to Construct 100,000-Barrel Refinery to Expand TOR Amid $570M Debt

Government to Construct 100,000-Barrel Refinery to Expand TOR Amid $570M Debt

The Government plans to construct a new 100,000-barrel refinery as part of efforts to expand the Tema Oil Refinery (TOR) and reduce the nation’s dependence on imported refined petroleum products.

This initiative comes despite the Government inheriting TOR’s substantial debt burden of $570 million.

Speaking at the Legal Green Soirée held at the University of Ghana, Deputy Managing Director of TOR, Edmond Kombat, emphasized that the refinery expansion aligns with President John Mahama’s broader 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,” Mr. Kombat stated.

TOR’s existing infrastructure, which includes a Crude Distillation Unit (CDU) with a capacity of 45,000 barrels per stream day (bpsd) and a Residual Fluid Catalytic Cracker (RFCC) with a 14,000-bpsd capacity, has remained non-operational since 2019. This has left Ghana heavily reliant on expensive refined oil imports.

According to Mr. Kombat, reviving the refinery could significantly reduce Ghana’s monthly fuel import bill, which currently stands at $400 million, and play a crucial 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 noted.

To fast-track the refinery’s revival, the government is actively engaging investors and seeking strategic partnerships to ensure TOR’s 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,” Mr. Kombat added.

The planned expansion is expected to enhance Ghana’s refining capacity, reduce dependency on imports, and support economic growth by optimizing the country’s oil and gas sector.