January 26, 2024
Ghana’s president on Friday, January 26, 2023 President Akufo-Addo commissioned the Sentuo Oil Refinery as part of initiatives to lessen Ghana’s dependency on oil imports.
The operationalisation of the Chinese-owned Oil Refinery is also expected to complement the country’s refinery efforts while awaiting the absolute revamping of the Tema Oil Refinery.
The Sentuo Oil Refinery is part of the One District, One Factory (1D1F) policy initiated by government. It is located on 100 acres of land and has the capacity to process five million barrels of oil annually.
The refinery will generate high-quality finished fuel (petrol), aviation kerosene, diesel, asphalt and lubricating base oil, while also creating around 1,000 jobs. Other by-products include solvent oil, polypropylene, liquefied petroleum gas, ammonium sulphide, sulfuric acid, sulphur, and others.
The first phase of the project, which began in 2022, will pump out 40,000 drums of refined products per day and scale up to 100,000 barrels per day upon completion of the second phase the following year
President Akufo-Addo noted that around 97% of petroleum products are imported into the country, and that the refinery will reduce major imports.
“It is essential to recognise that some ninety-seven percent (97%) of our current consumption of petroleum products is imported, resulting in a heavy reliance on external sources,” he said.
This overreliance, according to him, not only poses economic challenges such as high costs, and the constant drain on foreign currency reserves, but also limits the government’s ability to control prices and ensure a stable supply.
“The establishment of this refinery signifies our commitment to reducing this dependence, achieving self-sufficiency, and driving the growth of our domestic petroleum industry,” the president posted on his social media (Facebook page) following the commissioning.
Recognising the Chinese investor’s efforts, President Akufo-Addo stated that Xu Ning Quan’s collective efforts over the past 15 years have not only resulted in the strengthening of the government’s industrialisation agenda with the establishment of the refinery, but also with the February 2018 commissioning of the Fujian Sentuo Ceramic Company Limited, a ceramic tile production company operating under the 1-District-1-Factory policy, located in Kpone, Greater Accra Region.
Aside from providing a consistent supply of petroleum products, creating jobs to empower local communities, and driving investment in related industries as part of the broader industrialisation agenda, he stated that once everything is operational, the country will no longer be solely reliant on external sources for fuel but will harness all natural resources to fuel the nation’s growth.
Source: Energy Ghana