Business 24 Editorial: Great start to petroleum hub dream

Ghana’s desire to establish a petroleum hub is progressing steadily. The dream is a rather ambitious one with many critics casting doubts about government’s ability to get it done due to the sheer quantum of investment required.

But the Energy Ministry over the weekend told Business24 that it has shortlisted bids from three investors willing to kickstart the first phase of the project.

According to analysts, the US$60 billion project will be the biggest private investment in Africa.

The 20,000-acre petroleum hub is expected to have four refineries with a cumulative capacity of 600,000 barrels per day (bpd), two oil jetties, four million-capacity tank farms, and two petrochemical plants.

The Energy Ministry stated that one of the shortlisted investors is pledging up to US$15billion fund the storage component of the ambitious programme.

The bids have since been forwarded to the Attorney-General’s Department for review and advice, with a response expected by year-end for the project to take off in January.

The hub, which will be located at Bonyere in the Western region, targets very large and ultra-large crude carriers (VLCCs and ULCCs) traversing the West African coast, a popular route for European vessels.

The project is expected to accelerate the growth of Ghana’s downstream petroleum sector and make the country a major player in Africa’s oil and gas industry.

Government is targeting US$1.56bn in export tax revenue through the project, which is projected to create about 780,000 jobs and increase GDP by more than half by 2030.

The devastating effect of the pandemic means that such massive capital injection into the economy could not have come at a better time.

It is also heartwarming to know that the pandemic has not scuttled this dream.

Much as the economy badly needs this injection especially a project of such magnitude, government must ensure it fulfills its obligations to the people directly affected by the establishment of the hub.