The first phase of the much awaited Petroleum Hub Project has officially begun with the signing of a US$12 billion agreement between the Petroleum Hub Development Corporation (PHDC) and TCP-UIC Consortium, which consists of Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd. This is a significant step towards making Ghana a premier petroleum and petrochemical hub in Africa.
This historic occasion, which started today, is the start of a US$60 billion investment meant to transform Ghana’s energy industry and strengthen the country’s economy.
Comprehensive Development Plan
The private sector-led Petroleum Hub, which spans more than 20,000 acres in the Jomoro Municipal Area of the Western Region, would secure investments and other infrastructure development, including key ancillary projects.
The essential infrastructure consists of jetties, port infrastructure, five petrochemical plants, three refineries, and storage facilities with a capacity of 10 million cubic metres.
Unveiling the first phase
As the project’s foundational stage, Ghana’s industrialization plan will centre on building essential infrastructure, such as:
A State-of-the-Art Refinery:
This refinery will greatly improve Ghana’s capacity to process crude oil locally, with a daily production capacity of 300,000 barrels (bpd).The Petrochemical Plant is designed to transform petroleum wastes into valuable chemicals that are utilised in a variety of sectors, such as fertilisers and polymers.
Storage Facilities:
To guarantee a consistent supply and effective distribution of petroleum products, storage tanks with a 3 million cubic metre capacity are being built.
Port and Jetty:
Construction of a port and oil jetty to enable smooth import and export operations; Ancillary Infrastructure: Power plants, pipelines, and a state-of-the-art laboratory for product testing.
Economic Impact and Job Creation
This first phase is expected to create numerous jobs, providing a significant boost to local employment and the economy.
By 2036, the project aims to increase Ghana’s GDP by 70%, generating substantial tax revenue and supporting the country’s vision of self-sufficiency and industrialization.
Government and Investor Collaboration
During the signing ceremony, the Minister of Energy Dr. Matthew Opoku Prempeh emphasized the project’s alignment with Ghana’s “Beyond Aid” agenda.
“This project is a testament to our commitment to industrializing Ghana and creating sustainable jobs for our people,” he stated.
The CEO of PHDC also expressed optimism about the collaboration with TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success.
Strategic Location and Market Potential
The hub’s strategic location is poised to make Ghana a pivotal player in the West African petroleum market.
The hub will leverage Ghana’s stable political climate, strategic geographic position, and attractive investment incentives to draw further investments and foster economic growth.
Looking Ahead:
Future PhasesThe Petroleum Hub Project will be developed in three phases over the next 12 years.
After the completion of the first phase, subsequent phases will see the addition of refineries, petrochemical plants, storage tanks, jetties and port infrastructure and develop additional support facilities, including Liquified Natural Gas (LNG) terminals.
Conclusion
The signing of the first phase is a significant step towards realizing the full potential of Ghana’s petroleum sector.
The PHDC remains committed to ensuring that this project drives sustainable economic growth and brings long-term prosperity to the people of Ghana.