The development also puts consumers at risk as there are fears the products may have been in circulation at the various retail outlets.

The revelation comes seven months after the National Petroleum Authority (NPA) directed that all diesel in circulation must contain a maximum sulphur content of 50 parts per million.

The Managing Director of TOR, Isaac Osei disclosed this to Citi Business News.

He however indicated that there are measures in place to reach the goal soon.

“If the facility should receive about 300 million dollars, we should be able to install a de-sulpherer to get the 50 parts per million as planned. In any case we do not have to do so now but we are planning towards it; this year, we will be doing a configuration study and it will inform us on the type of equipment we could put in place in order to comply with the law but then we would be the only country to have done that,” he stated.

NPA’s directive takes effect on July 1, 2017

The National Petroleum Authority (NPA) first directed that all diesel in circulation should contain at least 500 million parts per million in November 2016.

This is to precede a final directive which took effect on July 1, 2017 where all imported diesel were expected to contain at least 50 parts per million.

Even though importers of such products have since been complying with the directive, the nation’s refinery is yet to do so.

But industry watchers believe this is long overdue considering the health implication of the unwholesome products.

A Senior Policy Analyst at the African Center for Energy Policy (ACEP), Jo-Ann Sackey tells Citi Business News the national oil refinery should expedite its work.

“It has been over a year since the new directive was announced so we would like to know what steps they (TOR) have taken so far to make sure this should not happen; 2020 is just two years away so are they saying that we should ensure using dirty fuel between now and then?”

Despite this, Mr. Isaac Osei is confident of reversing the trend as in his view, Ghana has advanced in processes to meet a sub-regional timeline of 2020, compared to her counterparts within the sub-region.

“The Nigerians say they will do theirs in 2022, Ghana is way ahead of everyone else because it is the only country which has decided that all imports should be at 50 million parts per million that does not affect refineries. People have also been talking about quality; but I think it is not about quality but rather about standards, when standards are yet, then you would have to comply.”

Consumers at greater risk if …

For, industry watchers like ACEP, TOR’s continuous distribution of refined products to Bulk Oil Distributing companies means that consumers still stand a risk of health implications associated with the high sulphur content in diesel.

“If TOR sells to other bulk distributors, then definitely the fuel is going into the pumps and then consumers will be using it subsequently but if TOR itself decides that it will only sell to specific consumers that can use the fuel without any effects, then that wouldn’t be a great concern to vehicle users,” she stated.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Low funding keeps sulphur in diesel products from TOR high appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is to improve the profitability of the oil refinery to be competitive in the industry.

The Managing Director of TOR, Isaac Osei disclosed this plan to Citi Business News following concerns of under production at the facility.

Currently, TOR produces at half capacity of about 25,000 barrels of oil per day due to the faulty equipment.

TOR has been faced with series of operational challenges over the years which compelled it to suspend operations early this year.

“The capacity that we have I think we are using all of it which is about 25,000 barrels of oil per day; by the end of the year, we hope we would have restored the furnace that had exploded in January 2017. Once we restore that we will be back to 45,000 barrels of oil per day; once we get to that level, then it will provide us with the platform to get unto the 60,000 barrels of oil per day which could be described as the profitable range.”

Mr. Osei further stated plans to improve the refinery capacity to turnaround the fortunes of the refinery soon.

“Aside this, we are also negotiating for a 100,000 barrel per day capacity refinery,” he said.

Finance Minister, Ken Ofori Atta last year announced moves to attract investors to revamp the operations of TOR.

At the time, he was hopeful that the refinery would be able to resume its full production capacity by the March 2018 to improve the supply of refined petroleum products.

Early this year, the Institute of Energy Security (IES) urged the government to intervene and get the Tema Oil Refinery (TOR) back to work.

The IES argued that this will largely be resolved with strengthening of the leadership of the facility.

Meanwhile, the Energy Minister, Boakye Agyarko has also outlined an ambitious plan to establish a new refinery within the next four years.

The facility which is in line with the government’s energy hub agenda, is estimated to cost 4 billion dollars.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post TOR targets full production by year end appeared first on Citi 97.3 FM - Relevant Radio. Always.

Energy Minister, Boakye Agyarko, who disclosed this says the new facility should increase the supply of refined products in Ghana.

[contextly_sidebar id=”R55hE769ke44ErYDddcaySPVXhETEoHR”]This is also part of attaining the energy hub status that the government is aiming at in the short to medium term.

The announcement comes days after the Institute of Energy Security (IES) warned of some impact on fuel supply should government fail to resolve the operational challenges at TOR.

Currently, TOR is able to refine crude up to 20,000 barrels of oil per day.

But Boakye Agyarko has told Citi Business News this should increase by about seven times to 150,000 barrels of oil with the new refinery.

The new facility is also estimated at 4 billion dollars.

He spoke on the sidelines of the Downstream Petroleum Colloquium by the National Petroleum Authority (NPA).

“We want to make sure that in the next three to four years, we build a brand new TOR of about 150,000 barrels of oil per day throughput, and then gradually ease out the old TOR which becomes a tank farm for the new TOR. Because the new TOR currently is at 20,000 barrels of oil per day which is not satisfactory, and if you ramp it up, the most you could get out of the old engine is 80,000 barrels of oil per day,” he stated.

The IES’ concerns among others had to do with leadership challenges at the refinery, which it argues has contributed to the inability to sustain operations.

The Energy Minister further disclosed plans to review the current laws governing the downstream sector.

The move will among others dwell on strategic stock management, increased access to petroleum products as well as improved quality of petroleum products.

Mr. Agyarko further revealed that, an implementation committee has begun the necessary research work to guide the formulation of such laws and achieve the energy hub target in the interim.

“We have already put in place an implementation committee which is looking at all the facets and regulations required which is why I have emphasized the need to look at the law again,” he added.

The colloquium on the theme, “Then, Now and the Future”, is to create a platform for the sector Ministry, Authority and its stakeholders for dialogue and information dissemination of industry activities, policy directions of the sector Ministry, trends and opportunities.

This is also to ensure the continuous growth and development of the petroleum downstream.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Govt to build new oil refinery for $4 bn appeared first on Citi 97.3 FM - Relevant Radio. Always.

The refinery, which resumed operations on January 2, 2018, experienced a forced shutdown on January 18, 2018.

The IES attributed the shutdown to non-compliance to procedures and practices, and alleges technical and operational lapses, factionalism, vindictiveness, mismanagement, absence of teamwork and lack of due diligence, which the energy think-tank said have consumed TOR, causing financial loss to the state.

Principal research analyst of IES, Richmond Rockson made these allegations in a statement, but Dr Kingsley Antwi-Boasiako, head of Public Affairs of TOR, described the accusations as pure falsehood which should be disregarded by the public.

“We can categorically say that there is no leadership crisis at TOR.

We are working together as a team and we would be happy if people would stop peddling such falsehood about the refinery,” Dr Antwi-Boasiako stressed.

According to him, all the information put out by IES are inaccurate and incoherent.

But, Rockson said, two weeks after the start of the refinery, a leakage was detected in the stabiliser reboiler (heat-exchanger E-19), forcing the Crude Distillation Unit (CDU) to go a week without stabilisation.

“Normally, when crude oil is fed into the CDU, it should take about four hours to warm up, break circulation at 200°C and attain transfer temperature at 345°C for distillation to begin.
“And anything beyond four to five hours distorts the crude’s yield pattern.

Strangely, it took about one week to stabilise the plant for optimum distillation, causing Liquefied Petroleum Gas (LPG) to mix with naphtha, leading to loss of 280,000 litres of LPG.

“Subsequently, the plant was forced to shut down due to excessive pressure rapturing the Residue Air Cooler (EA64), adding to the financial loss caused the country as a result of last year’s explosion,” Rockson explained.

IES asks questions.

IES asked questions such as: Was a thorough post-turnaround test carried out before re-starting the refinery’s CDU? Was the pressure indicator of Residue Air Cooler working? Was log-sheet kept? And how well are the operations, monitoring and maintenance of the refinery being carried out?

Rockson stated that one would have thought that lessons were going to be drawn from the furnace (F61) explosion at TOR about 12 months ago.

Unfortunately, he said, management of the refinery appears not to have learnt any lesson from the January 26, 2017 incident that destroyed property and nearly took lives of the refinery workers.

IES said recent happenings at TOR call for immediate action, and is, therefore, calling on the government to, as a matter of urgency, “address the leadership crisis at TOR.”

Ageing equipment and failure to undertake three consecutive turnaround maintenance since 2011 took a heavy toll on the operations.

With 45,000 barrels per day capacity, TOR should be able to refine over 16 million (16,425,000) barrels of crude oil annually.

3 Turnaround maintenance missed.

By design, the refinery is expected to run continuously for a maximum of two years before it is shut down for a major maintenance of its equipment.

The last time a general shutdown turnaround maintenance was carried out was in 2009.

The general shutdown turnaround maintenance for 2011, 2013 and 2015 were not carried out because of lack of cash.

The sources said plans are far advanced to carry out general shutdown turnaround maintenance before the end of this year.

$67.7m Turnaround maintenance.

In 2010, TOR requested for $67.7 million for plant stabilisation and enhancement projects.

In response, the government in 2012 released $30 million, which was used to complete the first phase of plant stabilisation and enhancement projects on the crude distillation and residual fluid catalytic cracking units.

TOR has completed the first phase of plant stabilisation and enhancement projects on the crude distillation and residual fluid catalytic cracking units at a cost of $30 million.

A second phase of stabilisation and enhancement projects designed to ensure the reliability of operations at the refinery delayed.

–

Source: The Finder Newspaper

The post TOR, IES, faceoff over forced shutdown of refinery appeared first on Citi 97.3 FM - Relevant Radio. Always.

The IES believes this will largely be resolved with strengthening of the leadership of the facility.

TOR has seen numerous setbacks in its operations with the recent being its Crude Distillation Unit (CDU).

The Unit which commenced operations on 2nd January this year had to undergo a forced-shutdown on the 18^th of January due to non-compliance with procedures and practices.

In an interview with Citi Business News, the Principal Research Analyst at the IES Richmond Rockson said the Energy Ministry must address the leadership issues at TOR to avert any further crises.

“Last year, there was an explosion at TOR and we called on the energy ministry and government to pay particular attention. Indeed this year we have had the same challenge again. Maintenance which was supposed to take three months has taken nine months. We still have not seen the report on the furnace explosion. Looking at all the events happening, we are calling on the ministry of energy to pay particular attention to Tema Oil Refinery otherwise we will be making losses,” he argued.

In 2017, the refinery suffered an incident that destroyed property.

Mr Rockson also raised the issue of the poor state of the stabilizer reboiler.

According to him, “As a practice, every maintenance work should have been concluded with a Post-turnaround report to validate the integrity of the major parts and components. From post start-up developments, it is clear that the integrity of the Plant’s major parts were not established before the rush start-up.

Two weeks after the start up, a leakage was detected in the Stabilizer reboiler (heat-exchanger E-19), forcing the CDU to go a week without stabilization”.

The statement further highlighted the poor state and structuring of the CDU at TOR.

“Normally, when crude oil is fed into the CDU, it should take about 4 hours to warm up, break circulation at 200°C and attain transfer temperature at 345°C for distillation to begin. And anything beyond 4 to 5 hours distorts the crude’s yield pattern. Strangely, it took about one week to stabilize the plant for optimum distillation, causing Liquefied Petroleum Gas (LPG) to mix with Naphtha; leading to loss of 280,000 litres of LPG.”

“Subsequently, the plant was forced to shut down due to excessive pressure rapturing the Residue Air Cooler (EA64), adding to the financial loss caused the country as a result of last year’s explosion” it explained.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana.

The post IES cautions of fuel crisis over TOR unit shutdown appeared first on Citi 97.3 FM - Relevant Radio. Always.

Though they have largely lauded the move, the industry watchers have suggested the need to attract private sector participation in order to achieve the full objectives.

The comments also follow recent fuel shortage and its impact in Neighbouring Nigeria.

Finance Minister, Ken Ofori Atta gave the latest assurance of revamping the operations of the Tema Oil Refinery in December 2017.

According to him, this will also dwell largely on the collaboration between government and the private sector.

“Things are changing and by the first quarter 2018, we expect the TOR to run continuously again… the higher strategic goal is to engage local and international partners to significantly expand its storage and refinery capacity,” he stated.

TOR refinery quantities revised

The Tema Oil Refinery had since the commercial exploration of oil in 2010, been saddled with numerous challenges that have also hampered its refinery capacities.

TOR had been tipped to increase its refinery productions from 16 to 18 million barrels, but it is yet to achieve this aim.

In addition, the revision of the sulphur specification content for diesel in Ghana from 1000 parts per million to 50 parts per million, requires a robust refinery to meet the standard.

The Executive Director of the Institute of Energy Security, (IES), Paa Kwesi Anamuah Sakyi is optimistic of the plan.

But he wants Ghana to do more and tap into the benefits that neighbouring Nigeria is perhaps missing out on.

“Another assurance came from the Petroleum Minister saying that before the end of 2017, the refinery will start that one didn’t materialize…The advantage we have from Tema Oil Refinery is that the about four refineries in Nigeria are not working. So if we are able to get TOR on stream we will be able to take advantage of the Nigerian market and some West African markets as well.”

Aside welcoming the decision, the Executive Director of the African Centre for Energy Policy (ACEP), Benjamin Boakye also believes efforts must be put in place to position TOR to refine to the current 50 parts per million requirement for diesel in Ghana.

“Even now with the sulphur standards that have been implemented, that is the 50 ppm, TOR cannot refine to that standard and therefore they need capital injection to retool the plant  to make it compliant with our own regulations and laws,” he asserted.

Private sector participation

It may perhaps suggest that the government will have no option than to stick to a plan to aggressively include the private sector in meeting the relatively huge capital injection needed to hit the ambitious target as scheduled.

In Mr. Anamuah Sakyi’s view, capital injection from the private sector will dependent on assurances on Return on Investments.

“Even if government needs additional inputs into Tema Oil Refinery, it can source for this financing within the country because people are willing to invest in the refinery. If only government shows a clear path that people will have returns for investments they make into the refinery.”

Meanwhile Benjamin Boakye also claimed, “The company needs some serious capital injection which we will advise government to put in the money. So if the government is not going to put in the money, then we will advise that it calls on the private sector to inject the capital to ensure that it can be efficient and refine products in order that it can compete on the market.”

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Analysts urge private sector involvement in TOR appeared first on Citi 97.3 FM - Relevant Radio. Always.

After administering the Oath of Office and Oath of Secrecy to the members, the Energy Minister congratulated and expressed gratitude to the Board for their decision to serve the nation.

The Minister further assured the Board of his unflinching support, and urged them to set strategic directions, collaborate with management, operate with maximum efficiency, discharge their duties professionally, and encouraged them to ensure the success of TOR.

Mr. Tongeaan Kugbilsong Nanlebegtang, Chairman of the Board, expressed his appreciation to the President, H.E Nana Addo Dankwa Akufo-Addo for the opportunity, and assured the Energy Minister of the Board’s commitment to work assiduously to revamp Tema Oil Refinery.

Members of the Board include Ambassador Isaac Osei, Hon Kofi Brako, John Boadu, Dr. William Abayaawiea Atuilik, Mrs Edith Sapara-Grant, Seth Achamfour-Yeboah, Leon Kendon Appenteng and Nene Abayaateye Amegatcher.

Other dignitaries present were Prof. Thomas Mba Akabzaa, Chief Director of the Energy Ministry, Directors from the Energy Ministry, and General Managers of the Tema Oil Refinery.

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By: Obrempong Yaw Ampofo/citifmonline.com/Ghana

The post Energy Minister inaugurates new TOR Board appeared first on Citi 97.3 FM - Relevant Radio. Always.

The figure however runs contrary to the earlier statement by the CEO of the National Petroleum Authority (NPA), Moses Asaga that it will cost the country about 300 million dollars for the reconfiguration.

“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,” he stated.

Moses Asaga’s figures came during his initial reaction to a report released by ACEP and its partners, Public Eye that Ghana, together with other seven African countries import ‘dirty diesel’ as they contained diesel with sulphur contents almost 300 times compared to those sold in Europe.

The development, the report further warns puts the lives of thousands of individuals at risk due to the inhalation of fumes from vehicles that use those diesel samples.

Even though many have raised doubts over TOR’s ability to undertake such refineries due to the huge financial challenges confronting it as a result of accumulated debts, its CEO, Mr. Awuah Darko maintains the restructuring undertaken by government puts the company in a position to contain any significant costs that the process will require.

“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,” Mr. Awuah Darko further stressed.

Meanwhile the NPA has justified its decision to review downwards the national sulphur specification for diesel from the maximum 3000 parts per million to 500 parts per million, effective January 2017.

The Authority will however allow suppliers to import diesel at 10 ppm or lower.

According to the CEO, Moses Asaga, the decision was to 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 stated.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Refining 10ppm diesel to cost TOR $120m appeared first on Citi 97.3 FM - Relevant Radio. Always.

Chief executive of NPA Moses Asaga told Citi Business News ‘the 500ppm was to ensure that technically, TOR can be able to produce the 500 ppm but when it comes to importation, the BDCs will import 10 ppm. 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’.

The NPA, yesterday (October 3), announced it had revised the national sulphur specification for diesel from the maximum 3000 parts per million to 500 parts per million, effective January 2017.

The Authority will however allow suppliers to import diesel at 10 ppm or lower.

But the review has been met with heavy criticism especially from the African Centre for Energy Policy (ACEP) which says NPA must further review downwards the maximum sulphur content requirement for diesel products imported into the country.

ACEP, earlier told Citi Business News that thousands of Ghanaians lose their lives every year, because they inhale fumes from dirty diesel which contain high levels of sulphur.

ACEP in partnership with Swiss NGO, Public Eye, recently revealed that Swiss commodity trading firms are exploiting lax regulatory standards to sell dirty diesel to African consumers.

The report which surveyed eight African countries including Ghana, indicated that the sulphur content of diesel samples in such countries was more than 300 times compared to that of Europe, US and Kenya in Africa which has 50 parts per million (ppm).

Chief executive of NPA Moses Asaga, who confirmed to Citi Business News that TOR lacks the capacity to meet the specification, said the Authority was forced to still maintain high sulphur levels in its revision figures to avert a complete shutdown of TOR.

“The countries in Africa that have attempted 50ppm have closed down their refineries because they cannot produce at that level. As a result, Ghana had to take the middle position by making sure it gets the right quality and at the same time keeping TOR in operation.”

Mr. Asaga added, “There is a timeline for all refineries to for them to upgrade their equipment and the only equipment that the TOR requires is a de-sulphurizer to reduce the sulphur levels to 10 ppm.”

Citi Business News has gathered it may take Ghana at least three years to fully ban the importation of dirty diesel into the country.

This is because TOR which is Ghana’s only national oil refinery lacks the financial clout to switch its current equipment to lower the sulpur content in diesel.

The equipment known as a de- sulphurizer will cost about 120 million dollars.

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By:  Vivian Kai Lokko/citibusinessnews.com/Ghana

The post NPA eases rules on dirty diesel to save TOR appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is because the country’s oil refinery the Tema Oil Refinery (TOR)is yet to raise money to change its equipment to lower the sulphur content in diesel.

The National Petroleum Authority (NPA) on Monday [October 3] revised the acceptable national sulphur specification for diesel from maximum 3000 parts per million (ppm) to 500 ppm.

The Chief Executive Officer of the NPA, Moses Asaga told Citi Business News that TOR lacks the capacity to meet the specification hence will be forced to the maintain high Sulphur levels in its revision figures to avert a complete shutdown of TOR.

“The countries in Africa that have attempted 50 ppm, have closed down their refineries because their refineries cannot produce 50ppm. So we have taken a middle position, that is, making sure we get the right quality but at the same time keep Tema Oil Refinery in operation,” he said.

The change is to take effect from January 2017 but TOR’s current financial strength has cast doubt on effective implementation of the new sulphur specification.

Energy policy think tank, African Centre for Energy Policy (ACEP), in an  interview with Citi Business News said thousands of Ghanaians lose their lives every year due to the  inhalation of fumes from dirty diesel which contain high levels of sulphur.

ACEP in partnership with Swiss NGO, Public Eye, recently revealed that Swiss commodity trading firms are exploiting lax regulatory standards to sell dirty diesel to African countries including Ghana.

The report which surveyed eight African countries including Ghana, indicated that the Sulphur content of diesel samples in such countries was more than 300 times the acceptable level in Europe, US and Kenya in Africa which has 50 parts per million (ppm).

However Asaga stated that “the 500ppm is to make sure that technically the Tema Oil Refinery will be able to produce the 500ppm when it comes to the importation, the Bulk Distribution Companies, they will import the 10ppm and the Tema Oil Refinery’s 500ppm can then be blended to come to required standard.”

He also said the closure of the refinery will lead to a loss of jobs for many hence the decision to wait for three years.

“If we close the refinery, it will mean that there will be loss of jobs and chaos so there is a timeline for ECOWAS that all refineries should be given three (3) years for them to upgrade their equipment and the only equipment the Tema Oil Refinery requires now is a de-sulphurizer to be able to reduce the Sulphur levels to the 10ppm.

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By: Jonas Nyabor/citifmonline.com/Ghana

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