Source, citinewsonline.com

The Centre for Environmental Management and Sustainable Energy (CEMSE) is proposing to the government to allocate $100 million in the upcoming 2026 national budget to support the purchase of crude oil for the Tema Oil Refinery (TOR).

The government has already announced plans to restart crude oil refining at TOR by the end of this year an initiative aimed at reducing Ghana’s annual US$10.2 billion oil import bill, conserving foreign exchange, and stabilizing domestic fuel prices.

Speaking to Citi Business News, Benjamin Nsiah, Executive Director of CEMSE, emphasized the need for strong government backing to ensure TOR’s sustainable and efficient revival.

“Given TOR’s current financial position, no bank or supplier will readily provide crude worth $100 million for refining. That is why the Government of Ghana—particularly the Ministry of Finance—must demonstrate commitment in the upcoming budget by assisting TOR to procure crude for its operations,” Nsiah stated.

He further suggested that government could consider redirecting crude liftings from the Ghana National Petroleum Corporation (GNPC) or other state-linked entities to TOR for processing.

“There must be a clear budgetary commitment—perhaps around $100 million—to enable TOR to purchase crude for refining,” he added.

TOR’s revival is widely seen as a strategic move toward enhancing Ghana’s energy security and reducing reliance on fuel imports. The refinery aims to meet about 60% of domestic crude oil demand, a move projected to save the nation an estimated US$400 million per month in import costs.

Currently, TOR has a nameplate capacity of 45,000 barrels per stream day, but recent upgrades—including the installation of a new furnace—have expanded its potential output to 60,000 barrels per day. With Ghana’s daily consumption hovering around 100,000 barrels, the facility could supply between 45% and 60% of national demand once fully operational.

To ensure a smooth restart, TOR has set up a Turnaround Maintenance Committee, chaired by the General Manager of Maintenance and supervised by the Deputy Managing Director. The committee meets weekly to monitor progress toward full restoration of operations.