Sentuo Group is investing $980 million to build a two million metric tons per year oil refinery in Tema, with a second phase planned to add another three million metric tons per year.

Mr Xu Ningquan, Executive Chairman of the Sentuo Group, announced the investment when representatives from the African Refiners Association (ARDA) and the Cooperation on International Traceability in Analytical Chemistry (CITAC) paid a working visit to the Sentuo Oil Refinery in Tema.

Currently, many African countries export crude oil and subsequently import refined petroleum products at elevated costs.

Mr Ningquan, however, stressed the importance of Africa achieving energy independence and controlling its economy by decreasing crude oil exports and importing finished products.

“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,” he explained.

He said Africa must develop its refining capabilities to add value to its crude resources.

He said that when this is done, it will foster economic development, enhance energy security, promote industrialization, and ensure sustainable and inclusive growth for the continent.

Mr Anibor Kragha, Executive Secretary of ARDA, thanked Mr Xu Ningquan for his unwavering commitment to developing local refining capabilities in Africa.

He lauded the bold steps taken by the Sentuo Group in investing in the Sentuo Oil Refinery, a move poised to significantly boost Africa’s energy sector.

Mr Kragha said the main objective of ARDA was to create an enabling environment for African oil refiners to thrive and attract investment into the industry.

“This goal is supported by CITAC, which provides a wealth of data and analytics about the African downstream energy industry,” he added.

The ARDA and CITAC extend their heartfelt congratulations to Sentuo Oil Refinery Limited for receiving the full operational license to function as an oil refinery in Ghana.

The CITAC specialises in consulting for Africa’s downstream energy industry, offering expert analysis and insights to aid the region’s energy sector development.