President John Dramani Mahama on Friday launched Phase II of the Sentuo Oil Refinery in Tema, unveiling a major expansion project that will increase the plant’s refining capacity from 40,000 to 100,000 barrels per day. The government says the project is expected to reduce Ghana’s dependence on imported fuel, meet growing domestic demand and position the country to export refined petroleum products to neighbouring West African countries.
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The refinery expansion forms part of the government’s broader plan to transform Ghana from a crude oil producer into a leading petroleum refining and export hub, creating more value from the country’s natural resources while strengthening energy security.
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Mahama says Ghana must add value to its oil
Speaking at the sod-cutting ceremony, Mahama said Ghana could no longer rely on exporting crude oil while importing refined fuel, insisting the country’s future lies in processing more of its own resources.
He said the government’s recent decision to allocate one million barrels of crude oil from the Jubilee Field to Sentuo for refining reflected a deliberate policy to strengthen the local industry.
“The recent decision to allocate one million barrels of crude oil from Jubilee Field for refining at Sentuo was deliberate and strategic. These decisions reflect a consistent policy direction and our firm belief that Ghana must increasingly process its own resources, support its own industries and create value within our local economy.”
The President assured investors, industry players and development partners that his administration remains committed to expanding Ghana’s downstream petroleum sector and encouraging private investment.
“Our vision is straightforward but ambitious. Ghana should not be known merely as a producer of crude oil. Ghana should be recognised as a nation that refines, processes and adds value to its resources and becomes a net exporter of petroleum products,” he said.
For more on Ghana’s energy sector, read our report on government plans to expand domestic oil refining.
Refinery expansion could reshape Ghana’s fuel market
Once completed, Phase II of the Sentuo Oil Refinery will more than double its daily refining capacity from 40,000 barrels to 100,000 barrels.
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The government believes the additional output will help reduce Ghana’s reliance on imported refined fuel while creating the capacity to supply petroleum products to neighbouring countries across West Africa.
Mahama said achieving that ambition would require both public and private sector investment. He expressed hope that a revitalised Tema Oil Refinery would eventually operate alongside efficient private refineries such as Sentuo to satisfy domestic demand and support regional exports.
The Tema Oil Refinery has struggled for years with debt, ageing infrastructure and repeated operational shutdowns, limiting its contribution to Ghana’s fuel supply.
While the Sentuo expansion is expected to strengthen Ghana’s long-term energy security, the government has not yet indicated when the project will be completed or when consumers could begin seeing any impact on local fuel prices.
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