President Nana Addo Dankwa Akufo-Addo has cut sod for the commencement of the construction of Ghana’s $60 billion petroleum hub at Nawuley in the Jomoro municipality of the Western Region.
Located on a 20,000 acres land with a coastline, the hub will be the leading integrated petroleum complex created to add value to the upstream and downstream oil and gas value chain on the continent.
To be executed in three phases between 2024 and 2036 the integrated hub will house a complex web of onshore and offshore ancillary assets not limited to only refineries, petroleum plants, and storage tanks.
The first phase estimated at $12 billion would focus the construction of a 300,000 barrels per day (bpd) refinery, 90,000 bpd petrochemical plant, three million cubic metres storage facility, and a jetty with port infrastructure.
Partners for the first phase of the project are the TCP UIC Consortium which comprises Touchstone Capital Group Holdings Limited, UIC Energy Ghana Limited, China One Engineering Company Limited, and China Construction Tech Engineering Bureau Company Limited.
The Consortium lead technical partner is China Huang Queen Contracting and Engineering Company Limited, a subsidiary of China National Petroleum Corporation.
Performing the sod-cutting here yesterday, President Akufo-Addo said the ceremony marked a massive continuation of a transformative journey towards the realisation of a modern, diversified, efficient and financially sustainable energy economy in Ghana.
He explained that commencement of the project followed the successful signing of phase one agreement between the Petroleum Hub Development Corporation (PHDC) and the TCP UIC Consortium, on June 18, 2024.
The commencement process he said marked a key milestone in the development of the petroleum industry in the country adding that “It also demonstrated our commitment to four new strategic partnerships that will drive our energy sector forward.”
President Akufo-Addo noted that, the implementation stage was a bold step towards ensuring that all Ghanaian homes and industries had access to reliable, affordable and sustainable energy.
The project, he indicated, had been structured into three independent phases with each phase, upon completion, serving as a standalone hub, and forming collectively a petrochemical industrial park sprawling across some 20,000 acres.
This method, he explained, would ensure that no single consortium or investor could halt the project’s progress.
President Akufo-Addo stated “This project, led by the private sector, is designed to capture and sell the African Continental Free Trade Area market, which is valued currently at some $3.4 trillion.”
In addition, he said “This project promises to create some 780,000 direct and indirect jobs, help stabilise our currency, stimulate local economic development and position Ghana as Africa’s premier petro-chemical hub,” he added.
President Akufo-Addo expressed confidence that the consortium would secure and innovative a workplace that adhered to highest industry standards in the first phase to meet timelines.
He assured that the Ministry of Finance would release as the first step towards the discharge of the government’s liability, compensation of about GH¢200 million to commence the payment of land compensation to the affected communities.
The Minister of State in charge of Energy, Mr Herbert Krapa, noted that the project would ensure petroleum product security and affordability in the country.
He added that the Western Region would benefit enormously and directly from the oil and gas resources.
The Western Regional Minister, Mr Kwabena Okyere Darko- Mensah, on his part said “The vision to make the Western Region the energy hub within the broad energy transition framework is a reality –it will further impact positively on the communities.”
The Chief Executive Officer of PHDC, Charles Owusu, said the project was envisioned to be a game changer in providing jobs, promoting technological transfer and position Ghana as a centre for refining and trading of petroleum and petrochemical products and services.
Chairman, QIC Energy Ltd, Ken Kanagui, also said “We are eager to start the project. We cannot disappoint the people of Jomoro.”
FROM CLEMENT ADZEI BOYE, NAWULEY