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RADP / Pulse Ghana  >  news  >  business

TOR to spend $120million if…

Magdalene Teiko Larnyoh

The Chief Executive Officer of the Tema Oil Refinery, Kwame Awuah Darko they would need 120 million dollars to re-configure the country’s refinery machinery to meet the 10 parts per million(ppm) sulphur content levels for diesel.

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This was disclosed by the Chief Executive Officer of TOR, Kwame Awuah Darko.

“Irrespective of the kind of crude we process down to the 10 ppm standard, we are looking at an investment between a 100 and 120 million dollars. It is very important that this has come at a time that government has done a strategic repositioning of TOR in the downstream petroleum deregulated petroleum sector.”

There have been a number of concerns raised as to whether TOR has the capacity to undertake such refineries. This is mainly attributed to the accumulated debts and other financial challenges being faced by the refinery.

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However, Awuah Darko argues that the restructuring undertaken by government puts the company in a position to contain any significant costs that the process will require.

READ ALSO: 'If we want high quality fuel then we need to pay more' - NPA boss

“The strategic repositioning is going to enable TOR independently raise close to 110 and 115 million dollars via the offshore mooring facilities that have been granted to the refinery. Based on government’s policy decision and action, we are very well positioned and very well positioned for the challenges in providing Ghanaians with quality fuels.”

The National Petroleum Authority (NPA) has reviewed the national sulphur specification for diesel from 3000 parts per million (ppm) to 500ppm.

READ ALSO: NPA revises national sulphur levels for imported diesel

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The reduction is as a result of a report by Public Eye which criticised Swiss firms for their links to the trade of diesel in Africa that contain high Sulphur considered illegal in Europe.

Meanwhile, the CEO of NPA Moses Asaga has justified the Authority’s decision. He said this was to prevent avert a shutdown of Tema Oil Refinery (TOR).

“TOR’s 500 ppm can then be blended to come to the required standard because if we close the refinery, it means there will be loss of jobs and chaos,” he said.

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Magdalene Teiko Larnyoh Magdalene Teiko Larnyoh A feminist at heart and a lover of art. She loves to write on business, politics and health.

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