President John Dramani Mahama has cut the sod for the second phase of the Sentuo Oil Refinery project at the Heavy Industrial Area in Tema.
When completed, the expansion is expected to add 60,000 barrels per day to the refinery’s capacity, in addition to the 40,000 barrels currently in operation.
Just a fortnight ago, the company received its first consignment of one million barrels of crude oil from the Jubilee field for local refining, marking what officials describe as a significant shift away from the importation of finished petroleum products.
Speaking at the ceremony on Thursday, President Mahama said the investment would position Ghana to meet rising domestic and regional energy demand while strengthening its competitiveness within the West African sub-region.
He described the timing of the expansion as appropriate, citing global uncertainty in crude supply chains and the growing push by countries towards energy independence. He further characterised the project as “bold and strategic”.
According to him, increasing domestic refining capacity would reduce Ghana’s dependence on imported refined petroleum products, improve supply chain reliability, retain more value within the economy, and create jobs for Ghanaians.
President Mahama also noted that the Ghana National Petroleum Commission, through its operating arm ExploreCo, was preparing to commence drilling in the Voltaian Basin before the end of the year, signalling further activity in the upstream sector.
He said ongoing investments in oil and gas were strengthening Ghana’s industrial base, deepening the energy value chain, and supporting the broader ambition of transitioning into a modern industrial economy.
The President further indicated that the Tema Oil Refinery had completed its first turnaround maintenance in four years and was expected to operate at full capacity later this year, a development he said could enable Ghana to export refined petroleum products.
He stressed that energy security remained central to national development, stating that “no nation can industrialise successfully without reliable, affordable and sustainable energy”.
President Mahama expressed hope for strong participation by Ghanaian companies across the value chain, adding that government remained committed to supporting investments that expand domestic refining capacity, strengthen energy infrastructure, and improve the resilience of the energy system.
The Executive Chairman of the Sentuo Group, Ningquan Xu, said the expansion would add three million metric tonnes of refining capacity and create more than 1,000 jobs.
He said Ghana was well placed to become a regional refining hub, alongside potential growth in fertiliser production, petrochemicals, logistics, and manufacturing within the West African sub-region.
Mr Xu added that Ghana should move beyond exporting crude oil and instead focus on value addition within the sub-region.
He said the country’s stable political environment, forward-looking leadership, and strong government business cooperation place it in a favourable position to become an industrial gateway under the African Continental Free Trade Area.
The Sentuo Group, he added, remained committed to local employment, skills development, technology transfer, supplier development, community investment, and responsible environmental stewardship.
FROM JULIUS YAO PETETSI, TEMA
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