President Nana Akufo-Addo, has officially inaugurated the Sentuo Oil Refinery, a Chinese-owned facility, raising concerns about the fate of the state-owned Tema Oil Refinery (TOR). The Sentuo Oil Refinery is anticipated to play a significant role in Ghana’s oil and gas sector.
Contrastingly, TOR, once a thriving state-owned oil refinery with substantial infrastructure, now lies in a coma, serving primarily as a storage facility for petroleum products owned by private companies, who pay a fee for the service.
Remarkably, TOR continues to have a management team and a government-appointed board, drawing salaries and sitting allowances monthly, funded by the TOR Debt Recovery Levy imposed on Ghanaians through the purchase of petroleum products since 2001.
What is particularly perplexing is that, the primary focus of the TOR board led by one David Adomako, appears to have shifted.
Instead of overseeing the processing and supply of crude oil to benefit Ghanaians, their recent actions involve the interdiction of two TOR staff members, Serwah Duncan-Williams and Anthony Koomson.
These individuals, both executive members of the union, were suspended by the board for engaging with the media in October 2023. Their public statements centred around the unsuccessful partnership deal between TOR and Torentco Asset Management Ltd.
The Chinese conglomerate, Sentuo Group, based in the Tema Industrial Area near Accra, has been actively present in Ghana since 2008. Comprising six business sections, including Sentuo Steel Limited, Fujian Sentuo Ceramic Tile Company Limited, Habilass Resources Company Limited, Sentuo Resources Recycling Limited, Sentuo Oil Refinery Limited, and Sentuo Building Materials Complex, the conglomerate currently employs over 4500 local workers.
The commissioning ceremony, which took place on Friday, January 26, marked a significant milestone in Ghana’s journey toward energy independence, industrialization, and economic prosperity, as President Akufo-Addo officially inaugurated the Sentuo Oil Refinery. The facility, owned by a Chinese conglomerate, is poised to play a crucial role in Ghana’s oil and gas sector.
President Akufo-Addo, emphasized the refinery’s importance in reducing Ghana’s reliance on imported refined petroleum products, contributing to energy security, and bolstering the nation’s position in the regional energy market. He stated, “It is essential to recognize that some ninety-seven percent (97%) of our current consumption of petroleum products is imported, resulting in a heavy reliance on external sources.”
Touching on the challenges faced by the Tema Oil Refinery (TOR), the President assured the public of the government’s commitment to its full operationalization. He stated, “We will stop at nothing to bring it back on stream so that, together with Sentuo, more and more of our oil will be refined right here in Ghana.”
The commissioning ceremony unveiled the first phase of the Chinese-built oil refinery in Tema, southern Ghana.
The Sentuo Oil Refinery is expected to generate thousands of jobs upon completion of the two-phased project.
President Akufo-Addo, highlighted the refinery’s potential to secure Ghana’s energy future, create jobs, empower local communities, and drive investment in related industries. He underscored that the establishment of the refinery is a testament to the longstanding relations between Ghana and China.
Chinese Ambassador to Ghana, Lu Kun, noted the continued commitment of the Chinese business community to invest in Ghana for economic growth, emphasizing the solid ties between China and Ghana. Xu Ningquan, Executive Chairman of China’s Sentuo Group, expressed confidence in the project’s success and its role in Ghana’s energy supply.
The Sentuo Oil Refinery, with an initial processing capacity of 40,000 barrels per day (scalable to 100,000 barrels), is expected to be completed by 2025. The facility aims to operate at a production capacity of five million barrels per year. President Akufo-Addo concluded, “This project represents not just the brick and mortar but also a symbol of our determination to shape our destiny, strengthen our economy, reduce our dependence on foreign oil, and inspire investment in our economy.”
“It is essential to recognize that some ninety-seven percent (97%) of our current consumption of petroleum products is imported, resulting in a heavy reliance on external sources. This overreliance not only poses economic challenges such as high costs, and the constant drain on our foreign currency reserves, but also limits our ability to control prices and ensure a stable supply.
“The establishment of this refinery signifies our commitment to reducing this dependence, achieving self-sufficiency, and driving the growth of our domestic petroleum industry,”
Touching on the prospects of the TOR, he assured the people of government’s unflinching commitment to the full operationalization of TOR, saying “we will stop at nothing to bring it back on stream so that, together with Sentuo, more and more of our oil will be refined right here in Ghana.”
“The challenges of another domestic oil refinery, the Tema Oil Refinery, are well documented. Nonetheless, I want to assure the Ghanaian people that the Government remains committed to the full operationalization of TOR, and we will stop at nothing to bring it back onstream so that, together with Sentuo, more and more of our oil will be refined right here in Ghana.”
Akufo-Addo said the authorization of the refinery to be set up in the country represented Ghana’s quest to secure its energy future.
“The refinery will not only provide a stable supply of petroleum products but also create jobs, empower local communities, and drive investment in related industries, contributing to the realization of our vision of industrialization,” added Akufo-Addo.
He further emphasized that the establishment of the refinery is a product of the long-standing relations between Ghana and China.
President Akufo-Addo, however, gave the assurance that the Government would pull all stops to ensure that the TOR, which has not been in operation for some time, becomes operational.
Xu Ning Quan, the Executive Chairman of the Sentuo Group, said the development reflected the long-standing ties between China and Ghana and underscored what nations can achieve when the private sector are supported.
He thanked the government of Ghana for creating the conducive and enabling atmosphere for the private sector to thrive, saying the project would complement Ghana’s quest for energy sustainability and efficiency.
Chinese Ambassador to Ghana Lu Kun, observed that the commissioning of the refinery is a continued commitment of the Chinese business community to invest in Ghana for economic growth, emphasizing that China and Ghana have maintained solid and close ties.
“Developing solidarity and cooperation with African countries, including Ghana, has been the cornerstone of China’s foreign policy, and a firm and longstanding strategy,” Lu added.
According to Xu Ningquan, executive chairman of China’s Sentuo Group, the two-phased construction is expected to be completed by 2025 and will play an important role in Ghana’s energy supply.
“I believe that through our collective efforts, the oil refinery project will achieve greater success, sharing more of its outcomes with the people in Ghana,” Xu added.
The two-million-dollar Sentuo Oil Refinery has an initial processing capacity of 40,000 barrels per day, scalable to 100,000 barrels when the facility is fully operational. The facility is expected to be completed this year and would operate at a production capacity of five million barrels per year.
“This project represents not just the brick and mortar but also a symbol of our determination to shape our destiny, strengthen our economy, reduce our dependence on foreign oil and inspire investment in our economy.” The President, who was optimistic that Ghana would soon wean itself from the reliance on foreign fuel for the country’s energy needs, said the operation of the refinery would serve as the pivotal step towards securing the country’s energy future.
“No longer would we be relying on external sources for fuel, instead, we will harvest our natural resources to fuel our progress.” President Akufo-Addo said the refinery would not only provide the country with petroleum products but also create jobs and empower local communities, drive investment in related industries and contribute to the overall realisation of Ghana’s broader industrialisation agenda.
“By processing our crude oil domestically, we are creating opportunities to add value, transform raw material into finished products and increase the competitiveness of our manufacturing sector,” he said. The President said the refinery stood as a good example of “our Ghana-made initiative, where we prioritize local production for the benefit of Ghanaians.”
It was also an indication of the good cooperation between the public and private sectors in the country, and investing in the sector would pave the way for a robust industrial revolution that would support various sectors, including agriculture, pharmaceuticals, manufacturing, and construction, he noted.
President Akufo-Addo was not happy that 95 per cent of Ghana’s current consumption of petroleum products was imported, resulting in heavy reliance on external sources.
“This over-reliance not only poses challenges such as high costs, and the constant drain on our foreign currency reserve, but also limits our ability to control prices and ensure stable supply. “The establishment of this refinery signifies our commitment to reducing this dependence, achieving self-sufficiency, and driving the growth of our domestic petroleum industry.
