Ghana Targets 70% Local Fuel Production with Expansion of $1.98 Billion Sentuo Refinery
Ghana is positioning itself for a major transformation in its energy sector as the government intensifies efforts to increase domestic fuel production through the expansion of the country’s first privately owned refinery and the modernization of its state-owned refining infrastructure. The ambitious strategy is expected to strengthen energy security, reduce dependence on imported petroleum products, create thousands of jobs, and establish Ghana as a leading petroleum hub in West Africa.
Speaking at the 7th Ghana International Petroleum Conference (GhIPCon 2026) in Accra, the Minister of Energy and Green Transition, John Abdulai Jinapor, announced that Ghana is targeting the production of 70 percent of its fuel locally, marking one of the country’s most significant energy development goals in recent decades.
According to the Minister, the government’s commitment extends beyond refining crude oil. He emphasized that modern refineries stimulate economic growth by creating opportunities across several sectors, including transportation, logistics, engineering, manufacturing, technology, construction, and other support industries. These developments are also expected to generate thousands of skilled and semi-skilled employment opportunities for Ghanaians.
At the centre of Ghana’s downstream petroleum transformation is the Sentuo Oil Refinery, the country’s first privately owned refinery. Constructed by the Chinese-based Sentuo Group with an investment of approximately $1.98 billion, the refinery commenced operations in January 2024 with an initial refining capacity of 40,000 barrels of crude oil per day.
The refinery is currently undergoing a major expansion supported by a $200 million financing package coordinated by Ecobank Ghana. Upon completion, its refining capacity will increase to 100,000 barrels per day, significantly boosting Ghana’s ability to meet domestic fuel demand while reducing the country’s dependence on imported refined petroleum products.
Alongside the Sentuo expansion, the government is also focused on revitalizing the Tema Oil Refinery (TOR), Ghana’s historic state-owned refinery. After remaining inactive for several years, TOR resumed operations in December 2025 and is currently refining approximately 28,000 barrels per day, although its installed capacity stands at 45,000 barrels daily.
Government officials have confirmed plans to further expand Tema Oil Refinery to maximize its production capacity. Although the financial details and implementation timeline are yet to be announced, the expansion forms a critical part of Ghana’s long-term energy strategy.
To ensure consistent crude oil supply for domestic refining, the government has allocated one million barrels of crude oil from the Jubilee Oil Field specifically for local refining operations. Future crude allocations are also expected to prioritize Tema Oil Refinery, ensuring both major refineries have sufficient feedstock to sustain increased production.
The combined expansion of Sentuo Oil Refinery and Tema Oil Refinery is expected to dramatically improve Ghana’s domestic refining capabilities. By producing more fuel locally, the country aims to lower fuel import costs, strengthen energy independence, improve supply stability, and enhance national economic resilience.
Ghana’s refinery expansion comes at a time when several West African countries are making significant investments in domestic refining infrastructure. Across the region, governments are seeking to capture greater value from their crude oil resources while reducing long-standing dependence on imported refined petroleum products.
Nigeria currently leads the regional refining industry following the successful commissioning and expansion of the Dangote Refinery, which now has an estimated refining capacity of 700,000 barrels per day. The refinery has significantly reduced Nigeria’s reliance on imported petrol while expanding exports of refined petroleum products to neighboring African countries.
Nigeria is also investing in the rehabilitation and expansion of its state-owned refineries. Earlier this year, the Nigerian National Petroleum Company (NNPC) entered into a partnership with two Chinese firms to complete ongoing rehabilitation works at the Port Harcourt and Warri refineries, reinforcing the country’s commitment to strengthening domestic refining capacity.
While Ghana’s refining ambitions may not rival Nigeria’s scale, the country’s strategy is carefully focused on achieving self-sufficiency in fuel production while positioning itself as a competitive supplier within the regional petroleum market.
Industry analysts believe that expanding refining capacity across West Africa will improve fuel security, reduce transportation costs, minimize exposure to international supply chain disruptions, and promote stronger regional trade under the African Continental Free Trade Area (AfCFTA).
For Ghana, successfully producing 70 percent of its fuel locally would represent a historic milestone in the country’s downstream petroleum sector. It would not only reduce dependence on imported fuels but also stimulate industrial growth, attract additional investments, create sustainable employment opportunities, and strengthen Ghana’s reputation as an emerging energy and petroleum hub within Africa.
As work continues on the expansion of Sentuo Oil Refinery and the modernization of Tema Oil Refinery, Ghana’s vision of building a resilient, competitive, and self-sufficient petroleum industry is steadily becoming a reality, reinforcing the country’s position as one of West Africa’s fastest-growing energy economies.
