President John Dramani Mahama has confirmed that the Tema Oil Refinery resumes operations, describing the development as a major breakthrough in Ghana’s quest for energy security and sector stability.

Delivering his 2026 State of the Nation Address in Parliament on Friday, 27 February, the President announced that the refinery has restarted processing crude oil into petroleum products following years of dormancy and extensive technical rehabilitation.

“I’m pleased to inform this August House that for the first time since 2018, the refinery has commenced processing of crude oil into petroleum products once more.”
President John Dramani Mahama

The announcement was greeted as a significant milestone for the country’s downstream petroleum industry, which has struggled in recent years due to operational and financial challenges.

A Turning Point After Years of Inactivity

The Tema Oil Refinery had remained largely inactive since 2018, with repeated shutdowns attributed to maintenance backlogs, aging infrastructure and financial constraints.

The inability to refine crude domestically increased Ghana’s reliance on imported refined petroleum products, raising concerns about energy security and foreign exchange pressures.

President Mahama acknowledged the difficult period but emphasised that the latest development signals a decisive turnaround.

According to the President, the refinery successfully resumed crude oil refining in December 2025 after extensive turnaround maintenance on its Crude Distillation Unit, a core component of the facility’s operations.

Industry experts say the rehabilitation of the distillation unit was crucial to restoring the refinery’s capacity to convert crude oil into usable petroleum products such as petrol, diesel and liquefied petroleum gas.

Strengthening Ghana’s Energy Security

The President described the restart of operations as a central pillar in his administration’s broader effort to revitalise the energy sector and reinforce national energy security.

He assured Parliament that reforms across the energy value chain remain firmly on track, stressing that government is focused on building a resilient and efficient system capable of meeting growing domestic demand.

“I remain fully committed to turning around the sector, strengthening its foundations, and ensuring reliable, affordable and sustainable energy security for our nation.”
President John Dramani Mahama

Energy security has become an increasingly critical issue for Ghana, particularly as global oil markets remain volatile and geopolitical tensions continue to disrupt supply chains. The ability to refine crude locally is seen as a strategic advantage that can cushion the economy against external shocks.

Economic and Revenue Implications

Beyond security considerations, the resumption of refining operations is expected to have important economic implications. Local refining can reduce import costs, conserve foreign exchange and potentially stabilise fuel prices in the domestic market.

The President indicated that reviving the refinery forms part of a broader strategy to improve efficiency and revenue generation within the energy sector.

With domestic processing back online, the government anticipates that the refinery will contribute more significantly to national revenue while creating employment opportunities across the petroleum value chain.

Analysts note that sustained operations will depend on consistent crude supply, sound financial management and ongoing technical maintenance to avoid a repeat of past shutdowns.

Looking Ahead

Edmond Kombat Esq., Managing Director of TOR

While the resumption of operations marks a significant milestone, stakeholders will be closely monitoring the refinery’s performance in the months ahead. Ensuring consistent output, maintaining infrastructure and addressing legacy debts remain critical to securing long-term success.

For many Ghanaians, however, the news represents a hopeful shift after years of uncertainty surrounding the facility’s future. The revival of the Tema Oil Refinery restores a key national asset to active service and reinforces government’s stated ambition to deliver reliable and affordable energy.

As President Mahama concluded his remarks, he framed the development as both symbolic and practical, reflecting renewed confidence in the sector’s direction.

With the refinery processing crude oil once again, Ghana takes a notable step toward strengthening its energy independence and reinforcing the foundations of its economic recovery.