New oil refinery apt – IES

The Institute of Energy Security (IES) is optimistic that government’s move to establish a new oil refinery will strategically position Ghana as an energy hub in the sub-region.

Energy Minister Boakye Agyarko revealed recently that the Akufo-Addo government is preparing to build a new oil refinery in Takoradi.

The new refinery will be ready within three or four years, according to Mr Agyarko who said the new refinery will be able to refine about eight times more crude in terms of quantity than the current 20,000 barrels per day by the current TOR.

The pronouncement comes on the back of an earlier warning by IES about the leadership and managerial lapses at the Tema Oil Refinery (TOR). In an interview with Class Business, Principal Research Analyst at IES, Richmond Rockson said the move will help generate more revenue for the state.

“Having a new refinery is a good idea. What the refinery [TOR] does as of now, even if the refinery is working at full strength, will not even be able to supply the local market [demand]. Every day we consume an average of about nine million litres and the refinery can do just about 45,000 barrels a day,” he explained.

According to him, “consumption in West Africa is about 30 million metric tonnes and 87 per cent to 90 per cent are imports from the international market. So, having a new refinery means that you will position Ghana in a strategic place to supply our local market and exporting to our neigbours”.