The first phase of the Petroleum Hub Development Corporation (PHDC), aimed at providing a significant boost to local employment and value for the economy, is set to begin soon as US$12 billion in funding is being secured..
The Corporation which is private led initiative is targeting to increase Ghana’s Gross Domestic Product by 70 percent by 2036. This is expected to generate substantial tax revenue while supporting the country’s vision of economic self-sufficiency and industrialization.
PHDC officially signed a US$12 billion agreement with TCP-UIC Consortium last week. The Consortium comprises of Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd.
“This project is a testament to our commitment to industrializing Ghana and creating sustainable jobs for our people”, the Minister of Energy Dr. Matthew Opoku Prempeh said during the signing ceremony.
The CEO of PHDC, Charles Owusu, expressed optimism about the collaboration with TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success.
The ‘Petroleum Hub,’ covering over 20,000 acres of land in the Jomoro Municipal Area in the Western Region, is a multi-phased US$60 billion investment in all, aimed at revolutionizing Ghana’s energy sector and dramatically boosting its economy.
The key infrastructure includes three refineries, five petrochemical plants, 10 million cubic metre storage facilities, jetties and port infrastructure. The first phase of the project, a cornerstone of Ghana’s industrialization strategy, will focus on establishing some of this critical infrastructure.
With a capacity of 300,000 barrels per day (bpd), the first refinery will significantly enhance Ghana’s ability to process crude oil domestically.
The first petrochemical plant will convert petroleum byproducts into valuable chemicals used in various industries, ranging from plastics to fertilizers.
Also, construction of storage tanks with a capacity of 3 million cubic meters will be done to ensure a steady supply and efficient distribution of petroleum products.
There is also plan to develop an oil jetty and port infrastructure to facilitate seamless import and export activities.
Ancillary Infrastructure planned: Include pipelines, power plants, and a cutting-edge laboratory for product testing.
The hub’s strategic location is poised to make Ghana a pivotal player in the West African petroleum market. The hub will leverage Ghana’s stable political climate, strategic geographic position, and attractive investment incentives to draw further investments and foster economic growth.
The Petroleum Hub Project will be developed in three phases over the next 12 years.
After the completion of the first phase, subsequent phases will see the addition of more refineries, petrochemical plants, storage tanks, jetties and port infrastructure and will develop additional support facilities, including Liquified Natural Gas (LNG) terminals.
The signing of the agreements underpinning the first phase is a significant step towards realizing the full potential of Ghana’s petroleum sector.
The PHDC remains committed to ensuring that this project drives sustainable economic growth and brings long-term prosperity to the people of Ghana.