With global oil prices facing renewed uncertainty amid tensions between the United States and Iran, attention is turning to the Tema Oil Refinery (TOR) and the role it can play in protecting Ghana from external shocks.
As TOR’s Managing Director prepares to address the Government Accountability Series, a key question is how the refinery plans to build on its recent operations and help reduce the country’s dependence on imported petroleum products.
TOR’s revival under President John Dramani Mahama’s administration has brought the facility back into active processing. The refinery has processed more than two million barrels of indigenous crude, including medium sweet crude from the Jubilee field. This could help reduce the need for foreign exchange to import finished petroleum products, although the extent of the savings will depend on the scale and consistency of local processing.
Building a Strategic Reserve Cushion
The renewed volatility in global oil prices has also raised questions about how Ghana can protect consumers and businesses from sudden increases in fuel costs.
One area likely to draw attention is cooperation between TOR and the Bulk Oil Storage and Transportation Company (BOST). Closer coordination between the two could help strengthen fuel storage and improve Ghana’s ability to respond to supply disruptions and sharp movements in international prices.
Building adequate reserves would give the country more room to manage short-term supply pressures. The question is whether TOR and BOST have a clear plan to expand storage, coordinate operations and maintain sufficient stocks to help cushion the impact of external shocks.
Sub-Regional Ambitions and Future Outlook
There will also be interest in TOR’s plans to expand its refining capacity. The refinery currently has a capacity of 45,000 barrels per stream day, while the government has set its sights on a 100,000-barrel target.
Reaching that level would give TOR greater capacity to process crude and could create opportunities to supply petroleum products to neighbouring West African countries. However, such an expansion would require investment, reliable crude supplies and a commercially sustainable operating model.
The key question is whether TOR can sustain its operations, expand its refining capacity and reduce Ghana’s exposure to volatility in the international oil market as the Managing Director takes his turn at the Government Accountability Series.
