To promote and develop a competitive, sustainable and enabling environment for investments in the midstream and downstream petroleum industry, the Petroleum Hub Development Corporation (PHDC) has officially signed a US$12 billion agreement with TCP-UIC Consortium, which comprises Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd. to commence the development of the first phase of the petroleum Hub project. The signing of the agreement begins a US$60 billion investment in the energy sector and will increase the country’s GDP by 70% upon its full implementation.
THE PHASE ONE
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
- Storage tank – Construction of storage tanks with a capacity of 3 million 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.
ECONOMIC BENEFITS
Phase one is expected to create numerous job opportunities for the people and local enterprises, which will boost local employment and the economy. The project aims to increase Ghana’s GDP by 70% by 2036 generating substantial tax revenue and supporting the country’s vision of self-sufficiency and industrialization.
GOVERNMENT AND INVESTOR COLLABORATION
The Petroleum Hub is a private sector-led investment with the government of Ghana 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 value addition to our natural and human resources, both of which we have in abundance in improving the economic wellbeing of the people of Ghana. “This hub has been long time coming and I am excited that today, we can do the signing for work to begin in earnest. We are hopeful that all the hard work we put in will yield the results that we desire. We are determined to achieve this goal and we will continue working to see this materialize,” he said. On his part, the CEO of PHDC, Charles Owusu expressed optimism about the collaboration with TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success and the need for all stakeholders to rally support behind the project. “Alone we build at snail pace; together we can build at speed of light and to succeed, we need to support each other to lift ourselves up in our quest to build the best energy industrial park in the world” he stated. He added that the project which is strategic and novel offers Ghana a competitive advantage and hope in becoming an industry giant.
STRATEGIC LOCATION AND MARKET POTENTIAL
The Petroleum Hub, situated on a 20,000-acre land at Jomoro in 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 etc and attractive investment incentives, the Hub will be able to draw further investments and foster economic growth.
LOOKING AHEAD: FUTURE PHASES
The Petroleum Hub is structured into three phases and will 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.
CONCLUSION
The phase one signing of the Petroleum Hub project is a testament to the government’s commitment towards economic sovereignty and regional leadership in the petroleum industry. With the combined efforts of the government, industry partners, and the people of Ghana, the petroleum hub is poised to become a cornerstone in the nation’s economic landscape.