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Ghana signs US$12billion deal for first phase of Petroleum Hub Project

By Reporter
Economy & Investments Ghana signs US$12billion deal for first phase of Petroleum Hub Project
TUE, 18 JUN 2024 LISTEN

In a significant development towards transforming Ghana into a leading petroleum and petrochemical hub in Africa, the Petroleum Hub Development Corporation (PHDC) has officially signed a US$12 billion agreement with TCP-UIC Consortium.

The ideal comprises Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd. will commence the first phase of the highly anticipated Petroleum Hub Project.

This landmark event, held today, marks the beginning of a US$60 billion investment aimed at revolutionizing Ghana’s energy sector and boosting its economy.

Comprehensive Development Plan
Covering over 20,000 acres of land in the Jomoro Municipal Area in the Western Region, the Petroleum Hub, which is private sector-led will secure investments and development of key ancillary and other infrastructure.

The key infrastructure includes three (3) refineries, five (5) petrochemical plants, 10 million cubic metre storage facilities, Jetties and Port Infrastructure.

Unveiling the First Phase
The first phase of the project, a cornerstone of Ghana’s industrialization strategy, will focus on establishing critical infrastructure, including:

A State-of-the-Art Refinery
With a capacity of 300,000 barrels per day (bpd), this refinery will significantly enhance Ghana’s ability to process crude oil domestically.Petrochemical Plant: The plant will convert petroleum byproducts into valuable chemicals used in various industries, ranging from plastics to fertilizers.

Storage Facilities
Construction of storage tanks with a capacity of 3 million cubic meters to ensure a steady supply and efficient distribution of petroleum products.

Port and Jetty
Development of oil jetty and port infrastructure to facilitate seamless import and export activities.

Ancillary Infrastructure: Including pipelines, power plants, and a cutting-edge laboratory for product testing.

Economic Impact and Job Creation
This first phase is expected to create numerous jobs, providing a significant boost to local employment and the economy.

By 2036, the project aims to increase Ghana’s GDP by 70%, generating substantial tax revenue and supporting the country’s vision of self-sufficiency and industrialization.

Government and Investor Collaboration
During the signing ceremony, the Minister of Energy Dr. Matthew Opoku Prempeh emphasized the project's alignment with Ghana’s "Beyond Aid" agenda.

“This project is a testament to our commitment to industrializing Ghana and creating sustainable jobs for our people,” he stated.

The CEO of PHDC also expressed optimism about the collaboration with TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success.

Strategic Location and Market Potential

The hub’s strategic location is poised to make Ghana a pivotal player in the West African petroleum market. The hub will leverage Ghana’s stable political climate, strategic geographic position, and attractive investment incentives to draw further investments and foster economic growth.

Looking Ahead
Future phases of The Petroleum Hub Project will be developed in three phases over the next 12 years.

After the completion of the first phase, subsequent phases will see the addition of refineries, petrochemical plants, storage tanks, jetties and port infrastructure and develop additional support facilities, including Liquified Natural Gas (LNG) terminals.

The signing of the first phase is a significant step towards realizing the full potential of Ghana’s petroleum sector.

The PHDC remains committed to ensuring that this project drives sustainable economic growth and brings long-term prosperity to the people of Ghana.

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Started: 02-07-2024 | Ends: 31-10-2024

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