Ghana’s Tema Oil Refinery, following recent expansion news to double capacity, has also figured out an urgent need to reinforce its activities to enable it to have a fair beneficial share of upcoming multi-billion dollar refinery by Africa’s richest Aliko Dangote of Nigeria.
The refinery is anticipated to produce about 650,000 barrels on daily basis. The fair share concern of the upcoming mega refinery by Dangote is emanating from the ECOWAS policy which permits refineries operating within ECOWAS member countries to penetrate West African markets without having to pay taxes, customs, or any sort of such payments. According to reports from Ghana, the MD of the Tema Oil Refinery sees the upcoming refinery as a threat to Ghana’s Tema Oil Refinery and its economic impact on Ghana. In a statement, he elaborated that the ECOWAS condition which allows tax free trade for refineries will mean that if a refinery is situated in Ghana and is producing more than the capacity needed by Ghana, then it is likely for the refinery to be a major supplier of petroleum products to other neighbouring countries and the sub region.
In view, management of Ghana’s Tema Oil Refinery is calling for an immediate response to increase its production to meet the country’s demand and also be more competitive prior to the establishment of Dangote’s refinery in 2019. Although the Tema Oil Refinery, which is a major crude oil refinery in the country, recently announced increasing its daily production capacity from initial capacity of 45,000 barrels of crude oil to daily production capacity of 65,000 barrels which gives the refinery a good outlook for the years ahead but certainly not a long term. Thus, the management sees an urgency to expand in 2017, securing funds and investments before Dangote’s refinery sets in.