Executive director of the Institute for Energy Security (IES), Nana Amoasi VII, has disclosed that the operations of Sentuo Oil refinery will play a major role in ensuring that the country is secured in terms of its domestic needs.
According to him, considering the fact that the refinery has the capacity of producing 5 million metric tonnes of crude oil in a year, with the production of some two million metric tonne in the first phase, it is good news for the country.
“It’s going to play a major role in ensuring that we are secured in terms of our domestic needs. Because as a country, we consume roughly 4.4 million metric ton a year, when it comes to diesel, we are doing roughly, 160,000 metric tonne a month, petrol 140, 000 metric tonnes a month, LPG/ATK fuel and oil combined, within roughly 380,000 metric tonne a month. That amounts to roughly 4.4 million metric tonne a year.”
Nana Amoasi VII
Nana Amoasi VII indicated that if Sentuo has the capacity to produce five million metric tonne a year, it means that all things being equal, in the next one to three years, it can meet the country’s entire annual needs of fuel in the country. However, he explained that Sentuo will not just be supplying to the domestic market, but may be supplying to the international market and West Africa domain.
“So, yes it will play a key role in our fuel needs as a country.”
Nana Amoasi VII
Alternatives to leasing TOR to Torenco
Commenting on the refinery’s production to commence in August and government’s promise to support it, Nana Amoasi VII stated that the kind of support government is giving to Sentuo, he wished can be replicated to resuscitate the Tema Oil refinery. This, he explained, is because over the last year, government officials have visited Sentuo Oil refinery more than four times.
“We’ve not seen same with Tema Oil Refinery. However, we want to believe that government is not only supporting Sentuo to the disadvantage of Tema Oil Refinery, and will also support Sentuo and any other refinery that makes good for the country.”
Nana Amoasi VII
Touching on government’s leasing of Tema Oil Refinery (TOR) to Torenco, Nana Amoasi VII revealed that like other stakeholders, the IES is a bit concerned with the financial and the technical capacity of Torenco. Nonetheless, he stated that Ghanaians are waiting to see what will come out in the next few months.
“Because we understand government has spent almost GHC1.3 million to a negotiator over the last one year. But I wish to see TOR refine its own crude, sell it on the Ghanaian market and taking an entire control of the facility. However, to lease this facility means that, you are bequeathing into a hand that you’re either sure can run it safely and efficiently for the period, or a hand that may be detrimental to our expectation.”
Nana Amoasi VII
Elaborating on other options government can take, the IES executive director revealed that there are a lot of other mechanism that government can consider beyond the leasing. With this, he indicated that TOR is good at towing arrangement – where somebody can bring in his crude, TOR refines at a towing fee and the person evacuates the products.
“The next is that somebody brings in the crude, supplies TOR, TOR manages it well and there’s another off-taker to pick it. So, we can look at other arrangements. We understand some other entities like Falcon energy, Legacy petroleum, and others, have also presented their terms sheet to TOR. We would have wished that whiles government is looking at Torenco, it must look beyond Torenco to consider other ones to see who will give us value for money and security of facility.”
Nana Amoasi VII
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