In a recent development aimed at transforming Ghana's energy sector, the Government of Ghana has entered into a significant agreement valued at US$12 billion with TCP-UIC Consortium. This consortium comprises esteemed entities such as Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd. The purpose of this agreement is to embark on the development of the initial phase of the Petroleum Hub project, which will be situated in the Jomoro Municipal Area within the Western Region.
Ghana's President Nana Akufo-Addo has inaugurated the development of a new oil refinery with a capacity of 300,000 barrels per day, aiming to establish Ghana as a significant petroleum center in West Africa.
Despite this ambitious initiative, some critics have expressed apprehensions regarding potential shortcomings in the project. Since beginning oil production in 2010, Ghana, the world's second-largest cocoa producer, currently extracts approximately 132,000 barrels of crude oil daily, alongside 325 million standard cubic feet of natural gas, as reported by Reuters.
"The project is set to be a fundamental element of our nation's progress," Akufo-Addo stated on Monday at the project's location in Jomoro, a city in the southwest, which will also feature petrochemical facilities.
The first phase of the initiative, projected to cost around $12 billion, will be developed and financed by a consortium that includes Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co.
According to the African Refiners and Distributors Association, West Africa has a daily oil consumption of about 800,000 barrels, with nearly 90% of this being imported. The petroleum hub project in Ghana is designed to fulfill the region's need for refined products and by-products by the year 2036, as per an agreement established in June 2018.
Not everyone supports the project, as highlighted by Bright Simons, a vice president at the Accra-based think tank IMANI Africa. He expressed doubts, asserting that the consortium responsible for the refinery "is not prepared for investment and the project lacks a viable business plan."
He further remarked, "Our stance is that this is a speculative effort to acquire land at a low cost."
Additionally, some residents within the proposed 20,000-acre area designated for Ghana's petroleum hub have strongly opposed the initiative, calling for a reduction of the project's footprint to 5,000 acres.
Despite this resistance, authorities are determined to proceed with the existing plans for the petroleum hub.