Ghana has officially embarked on constructing a massive $12 billion petroleum hub, a project expected to significantly enhance the country's position in the global oil and gas industry. Located in the southwestern city of Jomoro, the hub will include a 300,000-barrel-per-day refinery, petrochemical plants, and other related infrastructure, positioning Ghana as a key player in West Africa's energy market.
President Nana Akufo-Addo, who presided over the groundbreaking ceremony, emphasized the project's significance to Ghana's economic future. "The project promises to be a cornerstone of our nation's development," Akufo-Addo stated. This development marks a bold step for Ghana, which began oil production in 2010 and currently produces around 132,000 barrels per day (bpd) of crude oil.
The petroleum hub is expected to transform Ghana into a major supplier of refined petroleum products across West Africa, a region that currently imports nearly 90% of its petroleum needs. According to the African Refiners and Distributors Association, West Africa consumes about 800,000 bpd.
However, the project has faced criticism from various quarters. Bright Simons, vice president of Accra-based think tank IMANI Africa, expressed skepticism about the viability of the consortium behind the hub, describing the venture as lacking a "bankable business plan." Simons warned that the project might be more about acquiring land than actual development.
Local opposition has also emerged, with some residents of the proposed 20,000-acre site voicing concerns about the project's environmental and social impact. Legal challenges are anticipated as farmer cooperatives seek to protect their land rights and reduce the project's footprint.
Despite these challenges, the Ghanaian government remains committed, citing broad support from other residents and the potential economic benefits of the petroleum hub. The project's first phase will be funded by a consortium including Touchstone Capital Group Holdings and China-based firms, with completion expected by 2025.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More