Ghana secures $12 billion investment for Petroleum Hub Project
The Government of Ghana has inked a US$12 billion agreement with the TCP-UIC Consortium for the inaugural phase of the Petroleum Hub project. Situated in the Jomoro Municipal Area of the Western Region, this ambitious initiative aims to position Ghana as the energy trading hub in West Africa.
The agreement, which aligns with President Nana Akufo-Addo’s vision of establishing Ghana as a regional leader in petroleum refining, storage, and distribution, represents a significant stride towards economic transformation. The project is expected to catalyze the growth of Ghana’s petroleum downstream sub-sector, creating substantial employment opportunities, attracting foreign direct investment, and bolstering energy security.
Encompassing over 20,000 acres, the Petroleum Hub will feature extensive infrastructure designed to support the sector’s expansion. Key components include three refineries, five petrochemical plants, storage facilities with a capacity of 10 million cubic meters, and comprehensive port infrastructure. Ancillary facilities will include a power plant, LNG terminals, pipelines, water treatment facilities, and an extensive network of roads and rail.
In addition to the core infrastructure, the hub will house support services such as repairs and maintenance, nautical services, waste treatment facilities, logistics, security, and emergency response centers. Further enhancing its capability, the project will incorporate a state-of-the-art petroleum products laboratory, fabrication workshop, and metering and calibration services.
The entire project, projected to cost approximately US$60 billion, will be executed in three phases from 2024 to 2036. The first phase focuses on establishing a 300,000 barrel per day (bpd) refinery, a 90,000 bpd petrochemical plant, and a 3 million m³ storage facility, alongside the requisite jetty and port infrastructure.
Economically, the Petroleum Hub is anticipated to significantly enhance Ghana’s stature in the global energy market. The development will attract major international oil trading and storage companies, fostering regional trading champions and encouraging joint ventures between local and international firms. This influx of foreign capital and expertise will not only drive economic growth but also facilitate knowledge transfer and wealth creation for local enterprises.
The Petroleum Hub project is expected to generate over 780,000 direct and indirect jobs by its completion in 2036, substantially contributing to the nation’s economic landscape.
Sustainability is a core principle of the Petroleum Hub Development Corporation (PHDC), which has incorporated comprehensive sustainability plans in line with Ghana’s Energy Transition Plan. The PHDC’s strategy emphasizes balancing economic, environmental, and social considerations, with initiatives such as carbon offsetting, emission control technologies, waste management, and biodiversity protection.
Strategic partnerships underpin the agreement, leveraging the expertise of the TCP-UIC Consortium, which includes Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd. These collaborations are crucial to ensuring that the project adheres to the highest standards of operational excellence and safety.
The signing of this agreement marks a bold step towards Ghana’s aspiration for economic sovereignty and regional leadership in the petroleum industry. The collaborative efforts of the government, industry stakeholders, and the people of Ghana are set to establish the Petroleum Hub as a cornerstone of the nation’s economic future.
