Energy analyst Benjamin Nsiah says the Tema Oil Refinery (TOR) can achieve a production capacity of 100,000 barrels of crude oil per day, but only if government secures strategic partners to provide the needed capital, technology and technical expertise.
His comments follow the government’s ambition to expand TOR’s operations as part of efforts to strengthen Ghana’s domestic refining capacity and reduce dependence on imported finished petroleum products.
Speaking on JoyNews’ The Pulse on Monday, August 3, Mr Nsiah said the target is achievable in the medium term, provided the refinery attracts investors with the resources and capabilities required to upgrade and scale up production.
“It is doable if we are able to get strategic partners to inject some capital resources, as well as human and technological resources, to scale up this particular production in the medium term,” he said.
However, he noted that TOR’s existing financial challenges could limit its ability to independently fund the expansion, making partnerships critical to achieving the target.
“As we speak, I think TOR has a lot of liabilities and, for that matter, may not be able to mobilise resources to kick-start this particular project,” he explained.
According to him, government is likely to open discussions with both local and international investors who have the financial strength and technical expertise to partner the refinery.
“What I think government is likely going to do is to open up for investment, both local and international persons, individuals or institutions that do have these resources or capabilities to partner TOR and embark on this project,” he stated.
Mr Nsiah added that achieving higher refining capacity at TOR would also require Ghana to rethink its petroleum pricing system.
He explained that Ghana currently relies on international benchmark prices because a significant portion of petroleum products consumed locally are imported. However, increased domestic refining capacity could create room for a new pricing framework based on locally produced products.
“When TOR and Sentuo are able to do what we consume and even export, it means that we need a pricing regime whereby we set our own benchmark prices,” he said.
He argued that establishing domestic benchmark prices could improve transparency, enhance fairness and potentially make petroleum products more competitive for consumers.
“These benchmark prices will also help stabilise and make sure our prices are comparatively lower. So the issue of fairness in pricing will also come to play when TOR does this 100,000 barrels per day,” he added.
Beyond the energy sector, the analyst said expanding TOR’s capacity could have wider economic benefits, including job creation, industrial growth and positive macroeconomic effects.
“I also think that it has macroeconomic impact, socio-economic impact, and within the medium term, if they are able to do it, it brings a lot of benefits to the general economy of Ghana,” he stated.
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