Ghana to Restart Oil Refining at Tema Refinery by Year’s End
Ghana plans to restart crude oil refining operations at the Tema Oil Refinery (TOR) before the end of this year, a move officials say will significantly reduce the nation’s reliance on costly fuel imports.
The refinery aims to meet approximately 60 percent of Ghana’s local crude oil consumption, potentially saving an estimated US$400 million per month in import costs, according to Deputy Presidential Spokesperson Shamima Muslim. Speaking yesterday at the Africa Best Business Awards, Muslim stated the initiative is a key component of President Mahama’s ‘Resetting Ghana Agenda,’ focused on economic rebuilding through reforms and strategic partnerships. “The refinery is set to resume crude oil refining by close of this year,” Muslim said. “The move is expected to cut the nation’s US$10.2 billion annual oil import bill, stabilise oil prices and conserve foreign exchange.”
TOR will operate under a tolling arrangement with Sentuo Oil Refinery Limited, following a comprehensive assessment and restructuring process that is 98 percent complete. Government plans also include upgrading distillation units, pipelines, and storage infrastructure to restore full refining capacity, bolstering petroleum security. This comes as Ghana has seen positive economic indicators recently, with inflation declining to 8% and the cedi stabilizing, supported by increased gold export revenue – exceeding US$8 billion through the Ghana Gold Board.
Alongside the TOR revival, the administration is pursuing a 24-hour economy initiative, backed by US$4.4 billion in investment, and revitalizing the Ghana Free Zones Authority. Muslim emphasized the government’s role in creating a favorable business environment, stating, “Government is providing the soil. We require businesses to sow with us, to water with us and to harvest with us.” You can learn more about Ghana’s economic outlook here.
Officials say the administration expects the revived refinery and investments in renewable energy, such as the recently commissioned 5MW floating solar plant at Bui, to position Ghana as a regional industrial and export hub.
