Ghana signs US$12 billion deal to develop first phase of Petroleum Hub project

Ghana has taken a significant step towards transforming its energy sector with a landmark US$12 billion agreement.

The agreement will see the government of Ghana partnering with the TCP-UIC Consortium, comprised of Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd.

This consortium will spearhead the first phase of the Petroleum Hub project in the Jomoro Municipal area of the Western Region.

The total estimated cost of the project is about US$60 billion.

Minister of Energy, Dr. Matthew Opoku Prempeh, speaking at a signing ceremony for the agreement said the project aims to establish Ghana as a hub for energy trading in West Africa.

He mentioned that it will feature three refineries, five petrochemical plants, extensive storage facilities, jetties, and port infrastructure across a sprawling 20,000-acre site.

“This hub has been a long time coming, and I am excited that today we can sign for work to begin in earnest. We are hopeful that all the hard work we put in will yield the results that we desire. We are determined to achieve this goal, and we will continue working to see this materialize,” he said.

The energy minister emphasized that the project, which is a private sector-led initiative, is expected to attract significant foreign investment, create jobs, and bolster Ghana's energy security.

“Scheduled in three phases from 2024 to 2036, the initial phase will focus on building a refinery capable of processing 300,000 barrels per day, a petrochemical plant, a large-scale storage facility, and essential port infrastructure,” he explained.

The Paramount Chief of Western Nzema Traditional Council, Awulea Annor Adjaye III, who doubles as Chairperson of the Petroleum Hub Development Corporation, urged the corporation and its partners to ensure value addition and wealth creation for the people of Jomoro and Ghana at large.

“We as leaders hold in trust these natural resources for our people, so anytime we have to use them, we must ensure our people are the main beneficiaries of them,” Awulea Annor Adjaye III said.

The Petroleum Hub, when completed, is expected to create over 780,000 jobs directly and indirectly by 2036.

The project seeks to foster local entrepreneurship, promote knowledge transfer through international partnerships, and enhance Ghana's stature in the global petroleum industry.

The Petroleum Hub project will emphasize on community engagement to ensure local communities benefit from improved infrastructure, healthcare, and educational opportunities.

MA/AE

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