Sentuo Group has announced a substantial investment of $980 million to construct a two million metric tons per year oil refinery in Tema, Ghana, with a second phase planned to expand capacity by an additional three million metric tons per year.
The announcement was made by Mr. Xu Ningquan, Executive Chairman of the Sentuo Group, during a visit from representatives of the African Refiners Association (ARDA) and the Cooperation on International Traceability in Analytical Chemistry (CITAC).
The investment aims to address the current trend where many African countries export crude oil only to import refined petroleum products at higher costs. Mr. Ningquan emphasized the necessity for Africa to achieve energy independence and economic control by reducing crude oil exports and boosting local refining capabilities.
“Establishing local refining capacity enables these nations to retain a larger share of the value chain domestically, thereby increasing economic returns derived from their natural resources,” Mr. Ningquan stated. He highlighted that developing refining capabilities would foster economic development, enhance energy security, promote industrialization, and ensure sustainable and inclusive growth for the continent.
Mr. Anibor Kragha, Executive Secretary of ARDA, commended Mr. Ningquan for his steadfast commitment to enhancing local refining capabilities in Africa. He praised Sentuo Group’s bold investment in the Sentuo Oil Refinery, which is expected to significantly bolster Africa’s energy sector.
The main objective of ARDA, Mr. Kragha explained, is to create a conducive environment for African oil refiners to thrive and attract investment into the industry. CITAC supports this goal by providing extensive data and analytics about Africa’s downstream energy industry.
ARDA and CITAC extended their congratulations to Sentuo Oil Refinery Limited for securing a full operational license to function as an oil refinery in Ghana. CITAC specializes in consulting for Africa’s downstream energy sector, offering expert analysis and insights to support the region’s energy development.
This investment by Sentuo marks a pivotal step towards enhancing Africa’s refining capabilities, retaining more value from natural resources within the continent, and driving sustainable economic growth.
Source: Norvanreports