Mr Benjamin Nsiah, Energy Policy Analyst and Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), has outlined the critical importance and wide-ranging benefits of the Sentuo Oil Refinery working in close collaboration with the Tema Oil Refinery (TOR).
His comments followed President John Dramani Mahama’s sod-cutting ceremony for Phase II of the Sentuo Oil Refinery on Thursday, 25 June 2026. The expansion project is expected to boost Ghana’s refining capacity, strengthen national energy security, and create thousands of jobs.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5 FM, Mr Nsiah highlighted the anticipated benefits of a Sentuo–Tema collaboration, noting that it would stabilise the cedi, lower oil prices, and reduce the country’s dependence on imported refined products.
He urged the government to fast-track all outstanding agreements and approvals, stressing that prompt action would maximize the project’s positive impact on the national economy.
“This is a positive step,” Mr Nsiah stated. “There will be several benefits for the country. As Sentuo increases its capacity in the medium term, it will provide us with five or six key advantages. The first is that we will achieve self-sufficiency, meaning our energy security will be intact because we will refine the products here and consume them here. We will have reliable access to these products at all times and, comparatively, the cost of the products will be cheaper. This ensures our petroleum energy security is fully assured.
The second point is that it will generate export revenue. Our national consumption stands at about 135,000 barrels per day. Therefore, if Sentuo refines 100,000 barrels while TOR manages 60,000, we will have an excess of 20,000 to 30,000 barrels depending on daily consumption, which we can export to generate foreign revenue.”
He added that Sentuo would also meet its corporate tax obligations and other financial commitments, which would significantly strengthen Ghana’s fiscal position. Furthermore, the expansion is set to stimulate job creation across various levels, scaling up employment by over 1,000 jobs.
Mr Nsiah stressed that with operational efficiency from both Sentuo and TOR, Ghana would no longer need to depend on imported petroleum products, as the dual refineries could easily serve both domestic needs and export markets. This domestic self-reliance would shield the country from the adverse effects of global crises or volatile international situations that typically disrupt fuel imports.
Another major benefit mentioned by the analyst was infrastructure development.
He explained that if the two firms work in harmony, it will naturally drive the development of distribution infrastructure stretching from the Southern belt all the way to the Northern belt.
When asked whether this expansion could position Ghana as a central energy hub that other African nations could depend on for fuel, Mr Nsiah answered in the affirmative. He noted that Ghana could easily become a primary supplier to landlocked countries such as Burkina Faso and Niger, offering them cheaper and far more efficient supply chains.
“I think the benefits we will gain through this will be massive because we can export to other countries and make money,” he remarked. “We must all support this and continue to reform the sector.”
To ensure long-term success, Mr Nsiah suggested that the government must remain consistent with its policy framework, ensuring that Sentuo maintains regular and uninterrupted access to crude oil for refining.
He raised concerns regarding the governance framework of these institutions, particularly TOR.
He argued that without a robust, responsible, and accountable governance structure, operational inefficiencies would likely arise, creating liabilities that the government would ultimately be forced to settle.
“The sustainability of this initiative will depend heavily on government priority and policy,” Mr Nsiah concluded. “Since the refinery business is becoming a critical enterprise within our political and economic landscape, the government ought to develop a very strong environmental, social, and governance framework that exhibits global best practices and standards.
If we develop a proper policy, we can prevent entities in the sector from breaching guidelines or evading taxes, both of which undermine sustainability. Additionally, we must protect this sector from undue political interference, ensuring that a change in political power does not lead to the undermining of these vital companies.”
By: Rainbowradioonline.com/Ghana
