Ghana is on its way to becoming the African giant in the oil and gas industry, following signing of a US$12 billion agreement between the Petroleum Hub Development Corporation (PHDC) and TCP-UIC Consortium, to commence the first phase of the petroleum Hub project.
The TCP-UIC Consortium comprises Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd.
The signing kickstarts a US$60 billion investment in the energy sector and would increase the country’s GDP by 70% upon its full implementation.
The main project is structured into 3 phases with specific projects earmarked for construction under each project phase. The first phase will comprise of: a State-of-the-Art Refinery – This refinery with a capacity of 300,000 barrels per day (bpd) will process crude domestically, a Petrochemical Plant – With feedstock from the refinery, the petrochemical plant will convert petroleum byproducts into valuable chemicals to be used in various industries to produce plastics, fertilizer, etc.
The rest are Storage tank – Construction of storage tanks with a capacity of 3million cubic metres to ensure a steady supply and efficient distribution of petroleum products, Jetty and port infrastructure – The development of a jetty and port infrastructure to facilitate seamless import and export activities, Ancillary Infrastructure – This will include pipelines, power plants and a cutting-edge laboratory for product testing.
Phase one is expected to create numerous job opportunities and local enterprises, which would boost local employment and the economy. The project aims at increasing the GDP by 70% by 2036, generating substantial tax revenue and supporting the country’s vision of self-sufficiency and industrialization
The Petroleum Hub is a private sector-led investment with the government providing basic amenities such as land, regulatory framework, and other incentives. The land will be declared as a Freezone for export driven strategy.
At the signing ceremony, the Energy Minister Dr. Matthew Opoku Prempeh justified the need for a Petroleum Hub saying that “Africa currently depends on imports for more than 80% of its petroleum and petrochemical products. As such, there is a huge market in the sub-region due to the supply deficit of petroleum and petrochemical products”
The CEO of PHDC, Charles Owusu also expressed optimism about the collaboration with TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success.
The Petroleum Hub, situated on a 20,000-acre land at Jomoroin the Western region is poised to make Ghana a pivotal player in the West African petroleum market.
With reliable and transparent legal framework, stable political climate, security and conducive business environment as well as the provision of basic infrastructure such as rail, road, utilities amongst others and attractive investment incentives, the Hub would be able to draw further investments and foster economic growth.
The Petroleum Hub would be developed over a period of fifteen years. It is expected that after the completion of the first phase, subsequent phases will expand the key infrastructure of the refinery, petrochemical plants, storage tanks, jetty and port infrastructure.
The phase one signing of the Petroleum Hub project is a testament to government’s commitment in revolutionizing the economy in achieving the Ghana beyond aid agenda
The Petroleum Hub Development Corporation was established in 2020 through an Act of Parliament, Act 1053 (Petroleum Hub Development Corporation Act, 2020) to drive the promotion and development of the Hub in terms of securing licenses, permits and other required government support.
The Corporation was set up to create an enabling environment for private sector investments to thrive, provide decent jobs for Ghanaians and avenues for the growth of indigenous businesses.
