Presence of Sentuo Refinery to reduce costs of operations for members

Presence of Sentuo Refinery to reduce costs of operations for members

The Chamber of has stated that the presence of Sentuo Oil Refinery will go a long way to reduce the cost of operations for its members.

With a capacity of 200,000 barrels per day, which is more than enough to meet the domestic demand of 80,000 barrels per day, the government commissioned the Sentuo Oil Refinery, the largest and most modern refinery in West Africa.

The refinery which is a joint venture between the Ghana National Petroleum Corporation (GNPC) and Sentuo Group, a Chinese conglomerate is expected to create over 10,000 direct and indirect jobs and generate $1.2 billion in annual revenue for the government.

Speaking in an interview with Pious Kojo Backah on Market Place on the Joy News Channel, on how Sentuo refinery will impact the cost of procuring petroleum products, Chief Executive of the Chamber of Bulk Oil Distributors, Dr. Patrick Kwaku Ofori said the refinery comes in handy.

“Already most of our members are buying in cedis from them which somehow reduces their risk with regards to the forex issues that have bedeviled the sector for some time. This gives us some sort of comfort. The issue about demurrages which has been a thorn in the flesh of the importers is also coming down”.

He added that the issues about insurance and freight charges, which have been a major worry for them, will be minimised due to the presence of the refinery.

“Insurance and other freight charges that normally go into the suppliers’ premium, these are costs that can easily be gotten rid of when dealing with them. And even if it’s passed on with regards to crude, because there are multiple products from the crude, it is spread thin that any particular buyer will not necessarily feel the impact of that”.

Speaking on the same programme, Executive Secretary of the Chamber of Petroleum Consumers Ghana, Duncan Amoah, however, believed reviving the Tema Oil Refinery (TOR) is the surest bet in attaining energy security.

“For me, the earlier we think of bringing TOR back to work the better it will be. Otherwise if the market becomes a monopolistic market that only deals with a foreign owned refinery, I am not quite certain the petroleum security you’re looking for, you’ll get it”.

Meanwhile, Special Adviser to the President of Nigeria on Ease of Doing Business & Investment, Dr.  Jumoke Oduwole, says Africa’s petrochemical industry would experience a major boom because of the Dangote Refinery, which is the largest in Africa. She believes this will help reduce pressure on forex for imports.