The Sentuo Group has announced a significant investment of $980 million to enhance the capacity of its oil refinery in Tema, Ghana.
The investment aims to develop a two million metric ton per annum capacity, with plans for a second phase to add another three million metric tons per annum. This expansion demonstrates Sentuo’s commitment to creating substantial value in Africa’s petroleum industry.
The announcement follows Sentuo Oil receiving a full operational license to function as an oil refinery in Ghana. This milestone marks a significant step in Sentuo Group’s strategic plan to bolster the local refining capabilities and contribute to the region’s energy self-reliance.
Mr Xu Ningquan, the Executive Chairman of the Sentuo Group, shared this development during a courtesy visit by representatives from the African Refiners and Distributors Association (ARDA) and CITAC to the company in Tema. The visit was an opportunity to discuss strategies for Africa to enhance its ability to add value to its crude resources.
Xu Ningquan emphasized the importance of Africa achieving energy self-reliance. He highlighted the necessity for the continent to take ownership of its economy by reducing the export of crude oil and the import of finished products. According to Ningquan, developing local refining capabilities is crucial for the economic advancement of African nations.
Anibor Kragha, the Executive Secretary of ARDA, expressed his gratitude to Xu Ningquan for his commitment to developing local refining capabilities in Africa. He praised Sentuo Group’s bold steps in investing in the Sentuo Oil Refinery, acknowledging that this move is poised to significantly boost Africa’s energy sector.
Support from ARDA and CITAC
The African Refiners and Distributors Association (ARDA) and CITAC, a specialist consulting group in Africa’s downstream energy industry, extended their heartfelt congratulations to Sentuo Oil Refinery Ltd. for its achievements.
ARDA’s primary objective is to create an enabling environment for African oil refiners to thrive and attract investment into the industry. CITAC supports this goal by providing a wealth of data and analytics about the African downstream energy industry.
Kragha further emphasized that ARDA is dedicated to fostering an environment conducive to growth and development in the African oil refining sector. He pointed out that Sentuo’s investment aligns perfectly with ARDA’s mission to enhance local refining capabilities and reduce dependence on foreign imports of finished petroleum products.
The Sentuo Group’s investment in the oil refinery not only signifies a commitment to the local economy but also sets a precedent for other investors in the African energy sector. By expanding its refinery’s capacity, Sentuo Group aims to meet the growing demand for refined petroleum products within Ghana and across the continent.
This initiative is expected to have a ripple effect on the local economy by creating jobs, fostering skill development, and promoting technological advancement in the oil refining sector. Moreover, the increased refining capacity will help Ghana and neighboring countries achieve greater energy security and reduce their reliance on imported petroleum products.
Sentuo Group’s $980 million investment in the oil refinery in Tema is a major milestone for Ghana’s energy sector and a positive step towards achieving energy self-reliance in Africa. With the support of ARDA and CITAC, Sentuo Oil is well-positioned to lead the charge in developing local refining capabilities and creating value within the African petroleum industry.
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