Ghana’s new refinery in Tema, a city on the Bight of Benin, begun operations this week, after it was officially commission by the country’s president Nana Akufo-Addo on Thursday, 26th Jan.
- The $1.98 billion refinery, known as Sentuo Oil Refinery, has the capacity to refine two million barrels per year.
- According to President Akufo-Addo, the project is scalable to five million barrels per year.
- Ghana’s crude oil production capacity stood at 173 thousand barrels per day in mid-2023.
The West African country has 17 ongoing projects in oil and gas, as it seeks to boost production and refining. One of them, the Pecan Conventional Oilfield, whose first phase will cost $1.5 billion, is scheduled to begin production in 2025.
“By processing our crude oil domestically, we are creating opportunities to add value, transform raw materials into finished products, and increase the competitiveness of our manufacturing sector,” the country’s president said, “This refinery stands as a good example of our “Ghana made” (Made-In-Ghana) initiative, where we prioritise local production for the benefit of Ghanaians.”
Ghana currently imports 97% of its refined petroleum products, making it heavily reliant on global fluctuations, a factor that has worsened as the country’s works its way out of an economic crisis.
“This over-reliance not only poses economic challenges such as high cost, and the constant drain on our foreign currency reserves, but also limits our ability to control prices and ensure a stable supply”, he added.
Ghana plans to double its oil output in the short term.