Image

Dangote’s oil refinery not a threat to Ghana’s TOR – Analysts

Analysts in the oil and gas sector have downplayed any significant impact of a refinery by Dangote on the operations of the Tema Oil Refinery, TOR.

They say the development though laudable, may not be able to meet the demand for refined products which makes it necessary for TOR to work to sustain its operations.

The positions of the analysts come on the back of disclosure by Dangote Group that the refinery is nearing completion.

According to Group Executive Director, Strategy, Capital Projects and Portfolio Development, Devakumar Edwin, the refinery should help integrate the downstream industries and stabilize prices within the sub-region.

The Dangote refinery is targeting to refine 650,000 barrels of oil per day.

But on the possibility of assuming majority control in the supply of refined products, the Executive Director of the Institute of Energy Security, Kwasi Anamuah Sakyi disagrees.

“The Dangote refined products will not flood the entire West African market. It does tells us that TOR can still produce and have demand for its products if not for just West Africa, for Central African market as well the product demand is quite huge and almost everything that we consume in West Africa we import, and so if TOR repositions itself well, it should be able to realize it still has the market,” he told Citi Business News in an interview.

The Executive Director of the Kumasi Institute of Technology, Energy and Environment, KITE, Ishmael Egyekumhene could not agree more.

“I cannot see Dangote’s refinery becoming a threat unless they are able to produce at a cheaper price in which case it will just be like their cement business where even though we have GHACEM, people still buy that produced by Dangote because it is cheaper. So if TOR will be able to survive, then they also need to be very efficient because the Dangote refinery will be a very brand new one whereas for ours, even though there have been a lot of refurbishment and retrofitting, has been in existence since 1962,” he intimated.

Presently, the Tema Oil Refinery has the capacity to refine 45,000 barrels of oil per day which translates into about 16.4 million barrels annually; but it is producing below that capacity, at an estimated 20,000 barrels of oil per day.

Suggestions have been made for the managers to attract investments to turnaround its fortunes to grow the downstream petroleum sector in Ghana.

Comments

  • Horace

    17 July 2019, 12:04 pm

    Photography asians247\r Merkel could win a narrow majority with the FDP, her preferred partner, or fall short and be forced into difficult negotiations with the SPD which could last up to two months and result in big changes to her cabinet, including the departure of Finance Minister Wolfgang Schaeuble, a key player in the crisis.\n

  • Victor

    17 July 2019, 12:04 pm

    I\'m unemployed fantasticnudes\r After spending five days on the Venezuelan ship, they transferred to a Japanese cargo ship that took them to Chile where they are resting in a hotel in the port city of San Antonio. The Chilean newspaper Las Ultimas Noticias reported the story of their arrival.\n

  • Rueben

    17 July 2019, 12:04 pm

    An accountancy practice okij\r The nurse told her to go outside and walk, and said a doctor could check her in the morning, Lopez said. But an hour and a half later, her water broke, and Lopez gave birth to a son, her third child, while grabbing the wall of a house next to the clinic.\n

  • Stewart

    17 July 2019, 12:04 pm

    What company are you calling from? televisionx\r Applying a 14 times multiple to last year\'s earnings beforeinterest, tax, depreciation and amortisation (EBITDA) of $1.64billion, an IPO could value A.S. Watson at about $23 billion,bankers and analysts estimate. If 25 percent of A.S. Watson isfloated - a standard Hong Kong IPO percentage - the IPO couldraise close to $6 billion.\n

  • Clement

    17 July 2019, 12:04 pm

    Do you need a work permit? myfreeporn\r LONDON, Oct 4 (Reuters) - Top European copper users havebacked the London Metal Exchange\'s plan to reform itswarehousing system, even as a smarting aluminium industry staysfrustrated with storage practices blamed for inflating chargesto obtain material.\n

  • Julia

    17 July 2019, 12:04 pm

    Could you tell me the dialing code for ? allman\r The quake broke windows and opened fissures in the walls of some adobe dwellings in the nearest sizeable town, Acari, its mayor, Carlos Mejia, told the TV station Canal N. He reported no injuries in the mining town of about 4,000 residents.\n

  • Lily

    17 July 2019, 12:04 pm

    It\'s funny goodluck chinaporn\r BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.\n

  • Nogood87

    17 July 2019, 12:04 pm

    A financial advisor pinkpornstar\r Mickelson also has some bad memories of Oak Hill, with his 8-over, 288 in 2003 that left him tied for 23rd. At least he can recall the 1995 Ryder Cup on the same course, a year before Woods turned pro, when Mickelson went 3-0 against Europe during a tough U.S. defeat.\n

  • Pedro

    17 July 2019, 12:04 pm

    Where\'s the nearest cash machine? agedmaids\r Vale uses trucks as well as trains, but now plans to replace much of its network with a giant system of conveyor belts 23 miles long. BHP, the world’s biggest miner, started a trial of 12 driverless trucks at its Jimblebar iron ore mine this year, according to Bloomberg.\n

  • Harold

    17 July 2019, 12:04 pm

    We\'d like to invite you for an interview europorn\r Dozens of minimum-security prison inmates were aiding theclean-up effort, gathering debris in three towns in the westernpart of the state hit by record snowfall that felled trees andknocked out power lines.\n

  • Bernard

    17 July 2019, 12:04 pm

    Insufficient funds televisionx\r It\'s a celebrity\'s job to make sure they\'re at their best when stepping into the limelight, so it\'s no wonder why Hollywood\'s hottest have taken up unconventional beauty routines. From cupping to vamp...\n

  • Dudley

    17 July 2019, 12:04 pm

    About a year dungeoncorp\r Elsewhere, China\'s factory sector grew in September,suggesting Asia\'s economic powerhouse is starting to turn thecorner, though a firm rebound remains elusive, further dampeningsentiment on the local benchmark index.\n

  • Dwayne

    17 July 2019, 12:04 pm

    Not in at the moment okij\r In politics away from the track, with December\'s FIA presidential election simmering in the background. In speculation over 2014 and the step-change in engine regulations, which could really shake the grid up.\n

  • Alfonzo

    17 July 2019, 12:04 pm

    I\'d like to withdraw $100, please younglegalporn\r In an amended IPO filing on Tuesday, the eight-year-old company showed that it sustained its recent pace of revenue and user expansion in the latest quarter ended September 30 - even though its losses continued to widen.\n

  • Moises

    17 July 2019, 12:03 pm

    It\'s serious sex3\r The emails were monitored to allow the investigation team to gather evidence against members of staff, with a view to mounting disciplinary procedures against them. Monitoring of emails was also used during investigations which could have led to criminal proceedings.\n

  • Alphonse

    17 July 2019, 12:03 pm

    Could I have a statement, please? tubebangers\r Another source said the 50-game suspensions were designed to entice the players to immediately accept the discipline without litigation or arbitration. MLB investigators dug up evidence that warranted stiffer penalties.\n

  • Patric

    17 July 2019, 12:03 pm

    An envelope pornhob\r “While the headline figures show small improvements, youth employment has fallen sharply and long-term unemployment is still rising. There are also still record numbers of people trapped in involuntarily part-time work, with underemployment continuing to soar.\n

  • Seth

    17 July 2019, 12:03 pm

    I\'m only getting an answering machine tubebangers\r At the Nelson Mandela school, voter Daouda Bertet said: ''I have voted in several elections before but I have never seen so many people. It seems Malians have realised it is time for change and that voting can make a difference.''\n

  • Grace

    17 July 2019, 12:03 pm

    I love the theatre alexmovies\r Only patients whose tumours contain the non-mutated versionof a gene called KRAS took part in the trial. Erbitux is onlyapproved in this patient subgroup, which accounts for about 60percent of colorectal cancer cases.\n

  • Maynard

    17 July 2019, 12:03 pm

    I\'ve got a full-time job europorn\r Although Apple is rated double-A plus to Oracle\'s single-Aplus, investors could not resist the appeal of picking up 51bpof extra spread by buying Oracle\'s 5.5-year compared withApple\'s 1.00% 2018s at 44bp, and the 35bp extra that Oracle\'s10-year offered versus Apple\'s 2.4% 2023s at 75bp overTreasuries.\n

Leave a Comment

Recent Posts