Form partnerships to take advantage of Petroleum Hub project - CEO urges Ghanaian businesses

The Chief Executive Officer of the Petroleum Hub Development Corporation, Charles Owusu, has urged Ghanaian businesses to consider forming partnerships and positioning themselves well for the various opportunities the emerging petroleum hub project has to offer.

According to him, such mergers have the potential to empower local businesses to raise the needed capital to invest in the industry once the hub is completed.

Speaking in separate radio interviews in Takoradi, Mr. Owusu expressed optimism that the petroleum hub project has the potential to be a game-changer for the Ghanaian economy, emphasizing the essential participation of local businesses.

Upon completion, the hub is expected to increase Ghana’s GDP by about 70 percent, create over 780,000 jobs, and generate an estimated export tax of about $1.56 billion by 2030.

"We aim to make Ghana the energy provider for the African continent, and not only that, the world at large will also consider us a go-to country for petroleum products, which will have a huge impact on the local economy," he added.

Mr. Owusu, who is also a petroleum economist, further noted that with all necessary regulatory processes completed and stakeholder consultations done with the host communities and all relevant parties, the project will have a smooth takeoff.

"The MoU with the consortium was signed in December 2019, and negotiations for the first phase took almost 2 years. We have engaged our host communities on several occasions, so we have really done a considerable amount of work behind the scenes to get to this stage," he said.

He also revealed that the Jomoro municipality was selected based on several factors, including the depth of the sea, which ranges between 16-27 meters, exceeding international standards.

Additionally, after feasibility studies, it was determined that the project would not require the displacement of many communities.

"We aim to develop Jomoro into a smart city, making the Western Region the business hub of Ghana. After the feasibility study, we realized we would only need to relocate 2-3 communities, with a fourth community added for future purposes," he said.

The project has been structured into three phases, with the first phase starting in September 2024, involving land clearing, construction of drains, and other civil works. The project will pause in December due to a major election in Ghana and resume in March 2025 after the Chinese holiday in February.

Once completed, the hub will cover a total land area of 20,000 acres and will include 3 oil refineries with a capacity of 300,000 barrels each, 5 petrochemical plants supporting various industries, storage tanks with a 10 million cubic meter capacity, a jetty, and other ancillary structures.

It is estimated that about 780,000 jobs will be created during the development phase and beyond, with a significant positive impact on the economy.

An official sod-cutting ceremony will be held on Monday, August 19, 2024, to commence the petroleum hub project.