President John Dramani Mahama has directed the Minister for Energy and Green Transition, John Abdulai Jinapor, to develop a strategic roadmap. This roadmap will expand the Tema Oil Refinery's (TOR) production capacity to 100,000 barrels of crude oil per day. The directive was issued on Saturday, August 1, during the commissioning of the refurbished refinery at the Tema Industrial Enclave.
This order follows a significant operational milestone where TOR successfully processed 1 million barrels of locally produced Jubilee Field Medium Sweet Crude. The President's vision extends beyond mere restoration; he aims to transform TOR into a more efficient, commercially competitive, and financially sustainable entity. This expansion is crucial for Ghana's industrialisation agenda and its ambition to become a key player in regional petroleum refining.
This initiative fits into Ghana's broader economic strategy to reduce reliance on imported petroleum products and enhance energy security. The government seeks to position Ghana as West Africa's leading petroleum refining, storage, and logistics hub. This aligns with the country's commitment to the African Continental Free Trade Area (AfCFTA), aiming to boost manufacturing, industrial production, and exports. The refurbishment of TOR's facilities, including the Crude Distillation Unit and the Residual Fluid Catalytic Cracking Unit, signals renewed confidence in Ghana's industrial capacity.
President Mahama emphasised that the government's objective is to make TOR competitive and commercially viable. He stated, "Our vision for Tema Oil Refinery extends far beyond the successful refurbishment of these facilities. We do not intend merely to keep TOR operating. We intend to make it more competitive." He also announced plans to insulate the refinery from political interference through institutional reforms, ensuring long-term operational stability.
The expansion of TOR's capacity will have significant implications for Ghana's economy and energy sector. It is expected to create jobs, add value to natural resources, and strengthen energy security. The government also plans to upgrade TOR's Single Buoy Mooring (SBM) infrastructure to improve crude oil and petroleum product offloading. This will further solidify Ghana's position as a regional hub. Decision-makers and markets will closely watch the implementation of these reforms and the impact on Ghana's trade balance and industrial output.
President Mahama also disclosed plans for incentives for businesses operating round the clock, including tax relief and favourable energy tariffs. These incentives will support the government's 24-Hour Economy policy and the Accelerated Export Development Programme. Businesses importing capital goods for plant expansion will receive tax and duty-free benefits. TOR Managing Director Edmond Kombat confirmed the refinery is already operating on a 24-hour basis. This demonstrates the immediate operational readiness for the planned expansion.
The strategic roadmap will detail the steps required to achieve the 100,000 barrels per day target. This includes potential investments in new technologies and infrastructure upgrades. The long-term success of this initiative will depend on sustained government support and effective management free from political interference. Ghana's ambition to become a petroleum hub in West Africa hinges on the successful execution of this expansion and related reforms.