President cuts sod for petroleum hub project
President Nana Akufo-Addo has officially broken ground for commencing the first phase of Ghana’s Petroleum Hub development in Jomoro, Western Region.
This move marks the start of a significant project aimed at boosting the nation’s oil and gas industry. The Petroleum Hub project – which consists of refineries, petrochemical plants, storage tanks and jetties with port infrastructure – is a key part of the president’s vision to position the country as a destination for energy trading in the West African sub-region.
Comprehensive development plan
Covering 20,000 acres of land in the Jomoro municipal area of Western Region, the Petroleum Hub is private sector-led and will secure investments for developing key and ancillary infrastructures. The key infrastructure includes three refineries, five petrochemical plants, 10 million cubic metres storage facilities and jetties with port Infrastructure.
The ancillary infrastructure and services include a power plant, rail and road network, Liquified Natural Gas (LNG) terminals, pipelines, water treatment facilities, repairs and maintenance services, nautical services, waste treatment facilities, a logistics, security and emergency response centre, residential and commercial facilities, a light- to medium-industrial area and recreational centres.
Other services and infrastructure – such as a state-of-the-art laboratory for petroleum products, fabrication workshop, metering and calibration services, equipment supplies, logistics services, remote monitoring and diagnostics, lubricant storage and supply, inspection and certification services – will also be available.
The project is estimated to cost about US$60billion.
Development of the Petroleum Hub project will be executed in three phases between 2024 and 2036, with the first phase estimated at US$12billion; focusing on developing a 300,000 barrels per day (bpd) refinery, 90,000 bpd petrochemical plant, 3 million cubic metres storage facility and a jetty with port Infrastructure.
Economic impact and job creation
The Petroleum Hub, when completed, is expected to improve Ghana’s economy significantly with a projected Gross Domestic Products (GDP) growth of 70% by 2036. The Hub project will increase the presence of major international oil trading and storage companies, create regional trading champions and encourage joint ventures between local and international companies for knowledge-transfer and wealth creation among others. Local entrepreneurs will gain opportunity to do business with foreign investors in the Petroleum Hub, which will facilitate the financial growth of these enterprises.
The Hub project is expected to transform Ghana’s economy and create over 780,000 direct and indirect jobs in areas such as construction, engineering, manufacturing, logistics and administration.
Speaking at the ceremony, President Akufo-Addo highlighted the project’s importance for Ghana’s future by saying: “This project is not only offering at least 780,000 direct and indirect jobs to our people, but will also to help stabilise our cedi, help partially answer the question of – after Free SHS and TVET – what next for our graduates?; stimulate our local economic development; and position Ghana as the first Petroleum and Petrochemical Hub in Africa upon completion”.
The project’s development, being private sector-led, hinges on an export-driven strategy to seize and serve the AfCFTA market whose current size is at about US$3.4trillion” he said.
To ensure a ready workforce of Ghanaians for the Hub, President Akufo-Addo directed the Board and Ministry of Energy to train at least 200,000 skilled, semi-skilled and unskilled Ghanaians from now till December and beyond.
He also directed the Ministry of Finance to release an amount of GH¢200million to commence payment of land compensation, with immediate effect, to affected communities whose lands were affected during the compulsory acquisition of land by government for the project.
He proposed a consideration on amending the PHDC Act, 2020 (Act 1053) to rename PHDC as Jomoro Petroleum Hub Development Corporation (JPHDC), with its headquarters in Jomoro.
The Minister of State at the Ministry of Energy, Hebert Krapa, emphasised that the Hub will position Ghana as a key player in the global energy market, facilitating exports to the sub-region, Africa and beyond – thereby generating significant revenue.
He underscored the project’s aim of not only meeting current energy demands but also doing so in an environmentally sustainable manner, safeguarding resources for future generations.
The Hub will incorporate state-of-the-art technologies and best practices to minimise environmental impact and ensure long-term sustainability.
In his remarks, CEO-Petroleum Hub Development Corporation (PHDC) Charles Owusu highlighted the Petroleum Hub’s symbolic attributes, saying: “It symbolises progress, innovation and a brighter future. It is a project that will serve not only our current generation but also future ones, leaving a lasting legacy.” he said.
He called for hard work and collaboration toward the project, adding: “I see connecting unlikely dots in life as a calling for building legacies with hard work, patience and collaboration without compromising on precision and speed”.
The Paramount Chief of Western Nzema Area, Awulae Annor Adjaye III, welcomed the project and thanked the president for his vision to develop the Petroleum Hub; calling on all to give their unwavering support for its completion.
Sustainability approach
Recognising the importance of environmental protection, the Petroleum Hub Development Corporation (PHDC) is committed to minimising its environmental footprint. Key initiatives to be executed include the development of a live wall along the boundary of the Hub; adoption of advanced technologies for emission control; and waste management.
The Corporation is focused on ensuring and safeguarding biodiversity in the Hub area, protecting existing natural resources and ensuring adequate waste management practices. PHDC will also engage in ongoing environmental monitoring and assessment to ensure the Hub’s operations do not adversely impact the surrounding ecosystems. This commitment to sustainability reflects Ghana’s dedication to balancing economic growth with environmental responsibility.
The Petroleum Hub’s development is not just an industrial project; it is also a community-driven initiative. Government and investors are committed to ensuring that local communities benefit directly from the Hub’s development. These include investments in infrastructure such as roads, education, healthcare and social programmes aimed at improving the residents’ quality of life.
Conclusion
The ground-breaking ceremony for Ghana’s Petroleum Hub marks the start of a transformative project that will have a significant impact on Ghana’s economy, energy sector and industrial capabilities. PHDC remains committed to ensuring that this project drives sustainable economic growth and brings long-term prosperity to the people of Ghana.
The Petroleum Hub embodies Ghana’s aspirations for a future of energy security, economic prosperity and sustainable development. As we look forward to this project’s completion, we can be confident that it will play a critical role in shaping Ghana’s energy landscape for generations to come.