After years of persistent calls from policy think tanks and energy analysts, Ghana is taking concrete steps to strengthen its energy security by investing in strategic petroleum reserves.
The renewed focus comes as global shocks from geopolitical conflicts to supply disruptions continue to expose the vulnerability of countries without adequate buffer stocks.
Speaking on the issue, Edmond Kombat, Managing Director of Tema Oil Refinery, revealed that the government is moving to rebuild and expand the country’s crude oil storage capacity as part of a broader resilience strategy.
Edmond Kombat explains that, unlike refined fuels, crude oil can be stored for extended periods without significant deterioration, making it an ideal reserve asset.
“The best stock to invest is crude, because crude, you can store crude for a hundred years and you still get it the way it is,” Kombat noted, emphasizing that strategic reserves can act as a cushion during global supply shocks or sudden price spikes.
As part of the investment, TOR, he says, is now rehabilitating five dormant crude storage tanks and constructing additional ones to significantly boost Ghana’s storage capacity. He adds that technical teams have already been tasked with designing and executing the expansion, signaling a shift from policy discussions to implementation.
“One of the things we are doing is making sure that, as I mentioned, the five crude tanks that were out are being brought back. The technical team has been given a responsibility. They’ve designed, we’re going to build additional storage tanks to make sure that we’re able to store more,” he announced to Fellows of the Africa Extractives Media Fellowship (AEMF).
For years, organizations such as the Chamber of Petroleum Consumers have consistently advocated for Ghana to build strategic petroleum reserves. The organizations maintained that without strategic stocks, the country remains exposed to global market swings, often forced to buy at peak prices during crises.
The recent global events have reinforced that concern when major economies, particularly members of the Organisation for Economic Co-operation and Development, released hundreds of millions of barrels from their strategic reserves to stabilize markets.
While these countries could lean on stored resources to manage shocks, Ghana had no comparable buffer.
Without reserves, any disruption in global supply chains quickly translates into higher fuel prices at the pump, increased transport fares, and rising costs of goods and services.
Strategic stocks, by contrast, can help smooth these fluctuations, giving the government room to respond without immediately passing shocks onto consumers.
Beyond price stability, the move also enhances national security and planning capacity. With adequate reserves, Ghana can better manage emergencies, negotiate supply contracts from a position of strength, and reduce panic-driven imports during crises.
