On August 19, 2024, Ghana’s state-owned Petroleum Hub Development Corp. (PHDC) and private-sector partners officially broke ground on the first phase of the country’s $12-billion downstream petroleum hub. The project in Nawule, Jomoro, aims to significantly boost Ghana’s refining capacity and position the nation as a leader in Africa’s energy market. This multi-phased development is one of the largest in the West African region and includes a 300,000-b/d refinery, a petrochemical plant, and advanced storage and port infrastructure.
A Game-Changing Development for Ghana
The groundbreaking ceremony was attended by Ghanaian President Nana Addo Dankwa Akufo-Addo, who emphasized the strategic importance of this project for Ghana's economy and energy sector. The hub is designed to increase domestic refining capacity, provide reliable and affordable energy, and create about 780,000 jobs. The project also aims to strengthen Ghana’s position in the African Continental Free Trade Area (AfCFTA) market, complementing existing regional refineries.
In addition to the refinery, the first phase will see the construction of a 90,000-b/d petrochemical plant, storage tanks with a total capacity of 3 million cubic meters, and comprehensive port and jetty facilities. The project is expected to span multiple phases through 2036, eventually increasing Ghana’s crude processing capacity to 1.5 million barrels per day.
Phase 1: Laying the Groundwork for Future Growth
Phase 1 of the project covers 6,590.8 acres and will set the foundation for the broader industrial hub, which will span 20,000 acres in total. This first phase is entirely funded by private-sector investors, with notable contributors like Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., and China Construction Third Engineering Bureau Co. Ltd.
The project is set to have far-reaching implications for the national economy, stabilizing the currency, stimulating local economic development, and setting Ghana on a path toward energy independence. In a speech at the groundbreaking, Akufo-Addo also announced land compensation of 200 million cedis for affected communities and outlined plans for the Jomoro Petroleum Hub Development Corp. (JPHDC) to ensure that Ghanaians, especially from the Jomoro district, are trained and employed in the hub’s development.
Future Expansion
Once Phase 1 is completed, Phases 2 and 3 will add two additional refineries and four more petrochemical plants, increasing production capacity and diversifying the hub’s outputs. The long-term goal is to process up to 1.5 million barrels of crude oil daily, further solidifying Ghana’s role in Africa’s energy sector.
Key Takeaways:
$12 billion Phase 1 to include a 300,000-b/d refinery, a petrochemical plant, and storage facilities.
The project is set to create 780,000 direct and indirect jobs.
Long-term goal of processing 1.5 million barrels per day by 2035.
Part of Ghana’s strategy is to lead Africa’s energy market and complement the AfCFTA.
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