We Can’t Allow TOR to Collapse – Institute for Energy Policies and Research

We Can’t Allow TOR to Collapse – Institute for Energy Policies and Research

In collaboration with other civil society organisations and industry experts, the Institute for Energy Policies and Research (INSTEPR) will organise a forum to engage the government in finding a long-term solution to Tema Oil Refinery (TOR)’s woes.

According to the institute, it cannot allow a national asset like TOR to fail and be converted into a tank farm, as has been proposed in the past.

It expressed surprise in a statement that the government, as the refinery’s majority shareholder, has been silent on any plans to restart the refinery to alleviate Ghanaians’ suffering.

It explained that “the cost to revamp TOR and provide capital for its operations is estimated at $500 million. We all know Ministry of Finance does not have this money especially under the watchful eyes of the IMF”.

In the past, the institute proposed some solutions to the problems at TOR, which included increasing the CDU capacity from 23,000 to 45,000 barrels per day, and resolving the RFCC issue. Again, the Refiney should consider installing hydrotreating catalysts and technologies for all crude oil fractions, enabling the refinery to meet 50 ppm or lower specifications, as well as constructing a one kilometre gas pipeline to power the refinery.

“The question on the minds of most Ghanaians is, why is Tema Oil Refinery not working? In recent months there has been over 150% increase in prices of Petroleum products. This has brought immense hardship on the average Ghanaian through the increase in the prices of goods and transport”, the statement mentioned.

The last time TOR refined crude oil was in April 2021, just before the Interim Management Committee (IMC) was appointed on June 15, 2021. The Energy Minister tasked the IMC, among others, with receiving and assessing viable TOR partnerships.

The institute stated that there was no crude procurement or refining during the three-member IMC’s nine-month stay at TOR.

INSTEPR questioned the IMC’s work in several publications, claiming that they did not perform according to their scope of work.

It mentioned that the premier Oil Refinery when working reduces the importation of petroleum products including LPG (cooking gas) and provides job security to the hundreds of technical staff.

Source: Energy Ghana





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