New private refinery threatens TOR’s dominance despite securing strategic deal with Vitol, Decimal
Tema Oil Refinery’s (TOR) dominance in the crude oil refinery space is being threatened by the near-completion of a new private crude oil refinery plant.
The new refinery plant named Sentuo Refinery, per reports, has a refinery capacity three times the size of TOR.
When fully operational, the refinery is estimated to refine over 120,000 barrels of crude oil per day, as against TOR’s 45,000 barrels of crude oil per day.
Annually, it is estimated to churn out 1.5m metric tonnes of refined crude oil.
Information reaching norvanreports, indicates that, already, some top engineers with many years of experience at TOR are being poached to the new private oil refinery.
The new development comes on the back of a recent strategic deal struck between TOR and its new investors – Vitol and Decimal Capital.
Per the deal, Vitol and Decimal Capital will provide funding to restore refinery components of TOR, known as the Crude Distillation Unit as part of the Phase One of the deal.
Vitol and Decimal Capital per the deal are to operate and maintain the refinery. The two strategic partners, also as part of the deal, will clear some of the legacy debt of the defunct national refinery.
The strategic partners are also expected to cater for the utility tariffs of the refinery.
According to reports, the deal has already been signed and currently waiting for cabinet approval.
Very good idea. This will provide the much needed competition to TOR. It will create employment. Add value to our crude oil, thus generate foreign exchange which we need badly.
Provide industrial exposure to our youth and also expand further the Ghanaian market.