Ghana to earn $1.5 billion in export of refined crude oil
Ghana could earn up to $1.56 billion in exports tax of refined crude oil on the back of the operationalisation of the Petroleum Hub Development Corporation (PHDC).
This is according to the Minister for Energy, Dr Matthew Opoku Prempeh.
“The petroleum hub is a strategic initiative by the government which will serve as a new pillar of growth for the Ghanaian economy. It will transform the economy through export tax of about $1.56 billion, increase Ghana’s GDP by about 70% and create jobs in excess of 780,000,” stated the Minister.
Making the assertion during the inauguration of the PHDC, the Minister noted the hub will occupy a land space of about 20,000 acres and would have four refineries each with a capacity of 150,000bpd, two oil jetties, storage tanks for crude and two petrochemical plants.
The facility, the minister further noted, would accelerate the country’s growth in the petroleum downstream sector and make it a major player in the economy, and ensure the development of sustainable value, wealth creation and the progress and prosperity of the industry.
Adding that the development of the hub would also increase the presence of major international oil trading and storage companies, create regional trading champions.
The hub is also expected to encourage joint ventures between local and multinational companies for knowledge transfer and wealth creation.
Speaking further at the inauguration of the PHDC, the Minister urged the petroleum corporation board to ensure a fine partnership between the PHDC and the National Petroleum Authority (NPA) in the prosecution of your mandate.
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“There are ongoing efforts to enhance value maximisation within the downstream petroleum arena, and one of the key ways is for our country to have in place a Ghanaian content and Ghanaian participation regulations.
This will ensure that our people have the opportunity to participate fully in our industry. Ghanaians should not be left behind in this petroleum hub agenda. I urge you to make inputs where necessary for us to get a strong document, very much fit for purpose.” Dr Prempeh added.
The Chairman of the board, Awulae Annor Adjaye III, expressed the appreciation of the team for their appointment and pledged they would provide the strategic leadership essential to the success of the new entity.
The overall value of the petroleum hub is estimated to be in the range of $60 billion. The entire multi-billion project, though facilitated by Government, is designed to be purely private sector funded, attracting investors across the petroleum value chain.
West Africa’s first integrated oil and gas infrastructure will be set on a 20,000-acre land, Domunli enclave, in the Jomoro Municipality, Western Region. At its peak it can house 3 refineries with 300,000 bps capacity minimum each, 5 petrochemical plants, jetties and port infrastructure, 10 million cubic meters storage tanks, gas infrastructure and ancillary infrastructure.
The role of government, besides setting up the institution to drive the project, is to provide land, offsite infrastructure, tax incentives and other amenities towards the project. The project will be implemented in three phases over the next decade.
The Corporation is to realise a long-standing dream of getting Africa to set up an integrated petroleum industry that will ensure that the continent better exploits and realises the value chain optimum of its rich oil and gas resources.
