In line with President Akufo-Addo's vision to develop a modern, diversified, efficient and financially sustainable “energy economy”, the Petroleum Hub Development Corporation (PHDC) has signed a US$12 billion agreement with TCP-UIC Consortium, which comprises of 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 event, which took place today begins a US$60 billion investment in the energy sector and will increase the country’s GDP by 70% upon its full implementation.
HUB’S LOCATION AND MARKET POTENTIAL
The 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.
FIRST PHASE
The Petroleum Hub is structured into 3 phases with specific projects earmarked for construction under each project phase. The first phase will comprise of;
v A State-of-the-Art Refinery – with a capacity of 300,000 barrels per day (bpd) will process crude domestically
v 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
v Storage tank – Construction of storage tanks with a capacity of 3million cubic metres to ensure a steady supply and efficient distribution of petroleum products.
v Jetty and port infrastructure – The development of a jetty and port infrastructure to facilitate seamless import and export activities.
v Ancillary Infrastructure – This will include pipelines, power plants and a cutting-edge laboratory for product testing
ECONOMIC GAINS
The phase one of this project is expected to create direct and indirect jobs for Ghanaians and local businesses, 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 / INVESTOR COLLABORATION
Energy Minister, Dr. Matthew Opoku Prempeh at the signing ceremony reiterated his Ministry’s continued support in needed policy, leadership and guidance to ensure the successful execution of the project.
He also used the occasion to invite potential well-meaning investors to take advantage of Ghana’s stable political environment, ease of doing business, abundant natural resources and access to ECOWAS market in choosing Ghana as their investment destination for future phases of the Hub.
CEO of PHDC, Charles Owusu extended his heartfelt gratitude to TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success.
ADDITIONAL 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.
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.
The phase one signing of the Petroleum Hub project is a testament to government’s commitment in revolutionizing the economy in alignment with the Ghana beyond aid agenda
About PHDC
The Petroleum Hub Development Corporation was established in 2020 through an Act of Parliament, Act 1053 (Petroleum Hub Development Corporation Act, 2020) to drive the promotion and development of the Hub in terms of securing licences, permits and other required government support.
The Corporation was set up to create an enabling environment for private sector investments to thrive, provide decent jobs for Ghanaians and avenues for the growth of indigenous businesses.
Story by: Joshua Kwabena Smith
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