Tema Oil Refinery Launches Ambitious Expansion Plan to Hit 100,000 Barrels Daily by 2028

Ghana's efforts to become self-sufficient in fuel production took a significant step forward this week as Tema Oil Refinery (TOR) unveiled an aggressive expansion roadmap designed to transform the nation's energy landscape. The Managing Director, Edmond Kombat, revealed plans to scale up the refinery's daily output from its current 28,000 barrels per stream day to an ambitious 100,000 barrels per day within the next two years, with an eventual target of 200,000 barrels daily.

Speaking at the Government Accountability Series at the Jubilee House, Mr. Kombat detailed a phased approach to modernising Africa's oldest oil refinery. The immediate priority involves completing critical maintenance work on the F-61 unit this month, a move that will unlock the Crude Distillation Unit's latent capacity, pushing throughput to between 45,000 and 55,000 barrels per day. This represents the first substantial jump in TOR's processing ability in years.

Immediate and Medium-term Upgrades

TOR's recovery plan rests on several concurrent infrastructure projects. Verga Engineering is collaborating with TOR's technical team to commission the F-61 unit, whilst the refinery simultaneously tackles longer-term capacity constraints. A newly installed 120-ton boiler is already online, and engineers are progressing work on the Fluid Catalytic Cracking unit turnaround and SCADA (Supervisory Control and Data Acquisition) system upgrades.

In the medium term, TOR plans to install an advanced air cooler system to bump capacity to 60,000 barrels per day. More significantly, the refinery will replace its ageing 6,500 barrel-per-day catalytic reformers with a modern 10,000 barrel-per-day continuous catalytic reformer—a critical upgrade for processing lighter fuel products that command premium prices in international markets.

Why This Matters for Ghana

The expansion directly addresses one of Ghana's most pressing economic vulnerabilities: heavy dependence on imported refined petroleum products. Currently, fuel imports drain billions of cedis from the national reserves annually, straining the balance of payments and exposing the economy to volatile global oil prices and foreign exchange shocks.

By 2028, TOR's expansion is designed to supply approximately 70 percent of Ghana's national fuel demand from domestic refining. This shift would dramatically reduce import bills, create local jobs across the energy value chain, and insulate Ghanaians from sudden international price spikes. For context, reliable domestic fuel supply also strengthens industrial competitiveness and supports manufacturing sectors dependent on stable energy costs.

The government's commitment to this plan includes addressing TOR's chronic financial difficulties. The Ministry of Finance is currently evaluating options to write off or convert $120 million of TOR's legacy debt owed to the Government of Ghana. This debt relief or equity conversion is essential for the refinery's operational stability and ability to fund capital expenditure on new equipment.

President John Mahama directed the Minister for Energy and Green Transition in August 2026 to develop the strategic roadmap underpinning these expansion targets, signalling political will at the highest level. Critically, the government also plans to restructure TOR's operational framework to insulate the refinery from political interference and allow it to operate on commercial principles—a structural reform many analysts argue is essential for sustainable performance.

Success hinges on timely project delivery, sustained funding, and effective project management. Any delays in equipment installation or turnarounds could impact the timeline, though the phased approach provides some flexibility.