Rehabilitate TOR amid plans to build new oil refineries – IEA Research Director to Government

The Director of Research at the Institute of Economic Affairs, Dr John Kwabena Kwakye, has asked the government to refurbish the Tema Oil Refinery (TOR).

This comes after President Nana Addo Dankwa Akufo-Addo indicated the government’s plans to build new refineries in Ghana as part of the country’s industrialization drive.

“We are busily building an integrated bauxite and aluminium industry and an integrated iron and steel industry, building new oil refineries and have, so far, attracted six (6) of the world’s biggest automobile manufacturers to set up assembling plants in Ghana, prior to producing them in the country,” part of his speech at the 77th United Nations General Assembly meeting read.

Reacting to the plans of the government to construct new oil refineries in the country, Dr John Kwakye deemed the move a laudable one.

However, he was insistent that the TOR be refurbished regardless of the cost involved because “it is a viable investment”.

It's been reported that an oil refinery is being built and will start production in the comming months. This is good news. But what is the status of TOR? TOR must be rehabilitated at all cost. Even if we have to borrow to do so, we must bcos it is a viable investment.

— J. K. Kwakye (@JohnKwabenaKwa1) September 22, 2022

Earlier, the Institute of Energy Security (IES) had indicated that TOR’s collapse was imminent and that the government needed to intervene to optimize its operations. 

According to IES, the facility, under the leadership of energy sector minister, Dr Matthew Opoku Prempeh, is in debt in excess of some GH¢400 million. 

But the Energy Ministry dismissed the claims saying that “Dr Prempeh is resolutely committed to ensuring that TOR is put on a sound footing to support Ghana’s industrialization drive, and will continue to provide strategic leadership and direction in this regard. “