Sentuo Oil Refinery Project holds promise to overcome refinery challenges – Trade Minister
Kobina Tahir Hammond, Ghana’s Minister of Trade and Industry, recently embarked on a working visit to the Sentuo Oil Refinery Ltd. (SORL), highlighting the project’s potential to address the nation’s long-standing refinery problems. Aligned with the government’s “One District One Factory” (1D1F) policy, the refinery aims to refine 5 million tons of various crude assays annually, producing 3.2 million tons of high-quality refined petroleum products that surpass Euro IV standards.
The Sentuo Oil Refinery’s comprehensive output includes 350,000 tons of pitch products, 200,000 tons of lubricating base oil and solvent naphtha, and 400,000 tons of diverse by-products such as polypropylene, liquefied gas, ammonium sulfate, sulfuric acid, and sulfur. The completion and commissioning of the project’s two phases will solidify this impressive production capacity.
Minister Hammond, impressed by the scale and progress of the facility, commended the investors for their contribution, describing the project as a prime example of President Akufo-Addo’s industrialization and developmental agenda, as well as the overarching 1D1F initiative.
Expressing concern over the significant amount of money Ghana annually spends on importing refined oil and gas products, Minister Hammond expressed optimism that the Sentuo Oil Refinery project comes at an opportune time to address this challenge.
Upon his arrival, Minister Hammond was greeted by a high-level delegation from the Sentuo Group, led by Chairman XU NING QUAN. The tour and subsequent presentations were conducted by Rev. Dr. George Dawson-Ahmoah, Corporate Affairs Management Consultant; George Andoh, Technical Advisor; and other senior officials of the Sentuo Group.
Chairman XU NING QUAN conveyed the group’s commitment to Ghana’s development, stating that the Sentuo Group invests in vital sectors of the economy to facilitate accelerated growth. The Sentuo Oil Refinery aims to bolster the country’s energy sector by providing refined oil and gas products of superior quality at affordable prices.
XU NING QUAN expressed confidence that the project would positively impact various aspects, including revenue generation through taxes and levies, job creation, foreign exchange savings, value to customers in the form of competitive prices and superior quality products, and the establishment of strong community relations through corporate social responsibility activities focusing on health, education, sanitation, and social and humanitarian initiatives.
However, XU NING QUAN also highlighted certain challenges that require immediate attention and resolution to ensure smooth operations. These include securing test run permits from the National Petroleum Authority, establishing natural gas connectivity and supply, ensuring access to foreign exchange, providing adequate crude oil supply support (both local and foreign), granting tax waivers on materials, equipment, and machinery (Phase II), and improving motorable access roads to the facility.
Rev. Dr. George Dawson-Ahmoah stressed the need for effective measures to prevent unfair trade practices that could harm domestic refining of petroleum products. With the magnitude of impact the Sentuo Oil Refinery will have on Ghana’s downstream petroleum industry, safeguarding against dumping, countervailing measures, or excessive importation is crucial.
George Andoh, the project’s Technical Advisor, expressed confidence that the new refinery would help Ghana reduce its heavy reliance on imported gasoline and diesel, resulting in substantial cost savings for the country.
Minister Hammond emphasized that the Sentuo Oil Refinery’s presence in Ghana, driven by the 1D1F initiative, exemplifies President Akufo-Addo’s vision for the country’s development. The project holds the promise of overcoming refinery challenges and contributing to the nation’s energy security and economic growth.
