Tema Oil Refinery: Sustaining Ghana’s energy growth for decades

Stories and facts

The Tema Oil Refinery (TOR), Ghana’s oldest and largest oil refinery, has been a vital part of the nation’s energy sector for decades.

Located in Tema, about 24 kilometers from Accra, TOR was originally established in 1960 as the Ghanaian Italian Petroleum Company (GHAIP) under Italian ownership.

In 1977, the Government of Ghana took full control, becoming the sole shareholder, and later renamed it the Tema Oil Refinery in 1991.

Built on a sprawling 440,000 square meter site, TOR was designed in 1963 as a Hydro-skimming plant with an initial capacity of 28,000 barrels per day, processing light crude oils from Nigeria and Angola.

Over time, its capacity increased to 45,000 barrels per day following a major upgrade in 1977.

In 2002, the refinery expanded further with the installation of a Residue Fluid Catalytic Cracking (RFCC) unit, enabling it to convert low-value fuel oil into high-value products like LPG and gasoline.

Despite these advances, TOR faces challenges. When Ghana began commercial crude oil production in 2010, the refinery’s older systems were unable to process the country’s high-grade “Sweet Light” crude without costly retrofitting estimated at about 1 billion dollars.

Over the years, TOR has undergone several rehabilitation and expansion projects to improve efficiency and distribution, including the construction of a pipeline from Tema to Akosombo to supply the northern regions.

However, financial difficulties have also marked its history, with government interventions such as the clearance of a 1 billion cedi debt to Ghana Commercial Bank in 2010 helping to stabilize operations.

In September 2023, TOR made headlines again when a nearby gas booster station, Quantum Gas, caught fire, prompting swift emergency response efforts.

Today, despite operational and financial challenges, the Tema Oil Refinery remains a cornerstone of Ghana’s energy infrastructure and a symbol of the nation’s industrial ambitions.

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