Accra – Ghana is eagerly anticipating the launch of its state-of-the-art oil refinery facility in Tema, which is scheduled to commence operations by the end of August. The project, spearheaded by the Sentuo Group, represents a significant investment of $1.98 billion and promises to revolutionize the country’s energy sector.
The Sentuo Group’s refinery is expected to produce an impressive five million metric tonnes of petroleum products annually, including liquified petroleum gas (LPG), jet fuel, gasoline, diesel, and fuel oil. This capacity will not only meet Ghana’s growing demand for refined petroleum products but also alleviate the challenges associated with imports.
During a recent tour of the facility, Ghana’s Minister of Trade and Industry, K.T. Hammond, expressed his excitement about the project’s potential. He confirmed that the Sentuo Group was in discussions with the Ministry of Energy to secure 500,000 barrels of crude oil from Ghana’s oil fields for its initial production. By sourcing local crude oil, the refinery aims to contribute to the country’s economic growth and reduce its dependence on imports.
Furthermore, the refinery’s impact goes beyond meeting Ghana’s domestic needs. By 2025, the facility aims to refine an estimated 4.26 million tonnes of high-quality petroleum products, including gasoline, kerosene, and diesel that meet or exceed the euro iv standard. This commitment to superior quality will position Ghana as a leading supplier in the region and enhance its competitiveness on the global stage.
In addition to the refined petroleum products, the Sentuo Group’s refinery will also produce various by-products, such as polypropylene, ammonium sulfate, sulfuric acid, and sulfur, totaling 400,000 tonnes. These ancillary products will find applications in diverse industries, offering new business opportunities and contributing to Ghana’s industrial growth.
The launch of the refinery is a significant milestone for Ghana’s ambitious One District, One Factory (1D1F) program, which aims to foster industrialization and create employment opportunities. With over 900 Ghanaians expected to be employed directly by the refinery, it represents a promising step toward economic empowerment and sustainable development.
The government is fully supportive of the project, recognizing its potential to boost revenue generation and foreign exchange savings. Sentuo Oil Refinery Limited estimates that Ghana could save approximately $1.5 billion annually by locally producing 4.26 million metric tonnes of refined petroleum products, thus reducing the need for imports.
To ensure the success of this venture, Sentuo Group’s Executive Chairman, Xu Ning Quan, called on the Ministry of Finance to consider providing tax waivers and creating an enabling environment for the refinery’s operations. He emphasized that the refinery aligns with Ghana’s vision of value addition, import reduction, and building a resilient economy.
The impending launch of the Sentuo Oil Refinery has generated excitement within the country and beyond. As Ghana aims to double its hydrocarbon production by the end of 2023, the refinery’s contribution to the nation’s energy sector is set to play a pivotal role in driving economic growth and cementing Ghana’s position as a regional leader in the oil and gas industry.
By: Montel Kamau
Serrari Financial Analyst
14th July, 2023
photo source:Google
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