Ghana targets 70% of fuel demand from local refining by 2028. Tema Oil Refinery Managing Director Edmond Kombat disclosed this.
The refinery's processing capacity has been increased from 45,000 barrels per day to 100,000 barrels per day.
The expansion is part of a national plan to strengthen domestic refining capacity. President John Dramani Mahama directed the Minister for Energy and Green Transition to work with TOR's board and management. They will develop a strategic roadmap for the expansion.
TOR's Restoration and Legacy Projects program proposes expanding the existing plant. The program also includes constructing a new refinery with a capacity of 115,000 barrels per stream day. Together, the proposed projects would raise TOR's total processing capacity to 200,000 barrels per stream day.
Edmond Kombat noted that the Ministry of Finance is working with TOR to consider writing off US$120 million in legacy debt. The debt is owed to the government or converting the amount into equity. The expansion forms part of the government's broader strategy to reduce reliance on imported refined petroleum products.
The government's plan will have significant implications for Ghana's economy. It will reduce the country's reliance on imported fuel and increase local production. The plan will also create jobs and stimulate economic growth.
Edmond Kombat said the refinery's revival will leave behind something that serves people as well as plant. TOR is working closely with the Ghana Home Ownership Fund to build staff housing projects. The projects will be built on existing TOR lands to ease accommodation challenges within the Tema Enclave.