TOR to lose monopoly

THE Tema Oil Refinery (TOR) will from next year lose its monopoly over fuel refining in the country as three private companies are expected to join the industry.

The three companies whose names are yet to be released by the Energy Ministry, have the capacity to refine a total of 600,000 barrels of petroleum products daily, an official of the Energy Ministry has hinted.

TOR has a daily capacity of 45,000 barrels which is sufficient to meet 85 per cent of the country’s needs.

Director of Petroleum, Apeagyei Gyamfi, said at a briefing on the energy sector in Accra yesterday that the Ministry is finalising modalities to allow the three export-oriented companies to begin operations at Tema next year.

The briefing was for a delegation of High Commissioners and Ambassadors of European Union (EU) countries in Ghana, prior to their tour of energy generation facilities at Tema and Akosombo.

Dr. Gyamfi said the involvement of the three companies in the refining industry is in line with Ghana’s efforts to open up the energy sector for private sector participation and to ensure that the current and future needs of the petroleum market are met.

Currently, he said an initial Memoradum of Understanding (MoU) had been signed with the three companies, and they have been provided space in the free zones enclave at Tema to start setting up.

In addition, he said private sector participation is being encouraged to enhance the building of infrastructure including pipelines and storage facilities, as well as in helping TOR to recapitalise.

Such efforts, he said would help to ensure that petroleum products supply meets the national requirement at cost effective prices, and to manage the rapid growth in demand for petroleum products in view of the spiralling global oil prices.

Energy Minster, Joseph Adda, told the delegation that the country would need over 3 billion dollars to undertake various energy generation projects over the next five years.

Mr. Adda noted that the country’s energy reforms policy is focusing more on the involvement of the private sector to ensure good competition and efficiency in the production and distribution of energy products.

He urged donor countries to include energy sector development components in community projects they support so that it would help in addressing the energy needs of rural communities.

Mr. Adda thanked the EU for the support in the country’s development drive, noting that more than 50 per cent of Ghana’s foreign cooperation had been with the EU. Peter Linder, German Ambassador to Ghana and leader of the delegation, said the EU considers the energy sector vital to socio-economic growth and was prepared to collaborate in that sector.

The delegation’s visit to the energy facilities he explained, would enable the ambassadors know which areas their countries and the EU could invest in.

Ambassadors of EU member states are required to go on a field visit every six months to gather information about areas of interest to the EU for partnership and donor support, he explained.