In order for Ghanaian homes and industries to have access to an adequate, reliable, affordable and environmentally sustainable supply of energy to meet their needs, President Akufo-Addo has cut sod for the development of the first phase of Ghana’s Petroleum Hub in the Jomoro Municipal Area of the Western Region.

This follows an agreement of US$12 billion signed in June between the Petroleum Hub Development Corporation (PHDC) and TCP-UIC Consortium in Accra this year.

As a vision of the President, the development of the Hub will see Ghana becoming an industry giant for petroleum refining, storage and distribution within the sub-region and beyond.

THE PETROLEUM HUB COMPLEX
The Petroleum Hub is a private sector-led investment with the government of Ghana providing basic infrastructure such as rail, roads, and utilities, as well as economic and regulatory incentives that are required for the operationalization of the Hub.

The first phase out of three phases of the Integrated Petroleum Complex will consist of a refinery with a capacity of 300,000 barrels per day (bpd), a cutting-edge petrochemical plant with 90,000 bpd capacity, 3 million cubic metres (m3) of storage tanks, and a jetty with port infrastructure.

The development is being undertaken by TCP-UIC Consortium which comprises of Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd.

Speaking at the groundbreaking ceremony, President Akufo-Addo enumerated some economic benefits of the Hub saying “This project is not only offering at least 780,000 direct and indirect jobs to our people but also to help stabilize our cedi, help partially answer the question of after Free SHS and TVET, what next for our graduates; stimulate our local economic development, and position Ghana as the first Petroleum and Petrochemical Hub in Africa upon completion."

The development of the project being private sector-led, hinges on an export-driven strategy to seize and serve the AfCFTA market whose current size is at about $3.4 trillion he said.

To ensure a ready workforce of Ghanaians for the Hub, the President directed the Board and the Ministry of Energy to train at least 200,000 skilled, semi-skilled and unskilled Ghanaians from now till December and beyond.

He also directed the Ministry of Finance to release an amount of GH¢ 200 million to commence payment of land compensation with immediate effect to affected communities whose lands were affected during the compulsory acquisition of land by government for the project.

He proposed a consideration on the amendment of the PHDC Act, 2020 (Act 1053) to rename PHDC as Jomoro Petroleum Hub Development Corporation (JPHDC)with its headquarters in Jomoro.

The Minister of State at the Ministry of Energy, Honourable Herbert Krapa applauded all the previous Energy Ministers and stakeholders who contributed towards the Hub’s development. He went on to buttress the use of sustainable practices in the development of the hub saying the goal is not just to meet the energy demands of today but to do so in a way that preserves our environment for future generations. In his remarks, the CEO of Petroleum Hub Development Corporation Charles Owusu highlighted the symbolic attributes of the Petroleum Hub saying it symbolizes progress, innovation, and a brighter future.

“It is a project that will serve not only our current generation but also future ones, leaving a lasting legacy” he said. He called for hard work and collaboration towards the project saying, “I see connecting unlikely dots in life as a calling for building legacies with hard work, patience, and collaboration without compromising on precision and speed”.

The paramount chief of the Western Nzema traditional area, Awulae Annor Adjaye III welcomed the project and thanked the President for his vision to develop the Petroleum Hub and called on all to give their unwavering support for its completion.

ECONOMIC IMPACT

The development of the Petroleum Hub Complex will increase foreign direct investment into the economy with a projected GDP growth of 70% by 2036. When completed, the Hub will see an increase in the presence of major international oil trading and storage companies, encourage joint ventures between local and international companies generating substantial tax revenue and supporting the country’s vision of industrialization and self-sufficiency. It is also expected to create a total of about 780,000 jobs after the completion of all three phases.

SUSTAINABILITY APPROACH

Being mindful of the global energy transition, the PHDC will work towards balancing energy security and energy transition. In achieving the objective of balancing energy security, economic growth, decarbonization and energy transition, the Corporation has adopted cutting edge strategies in achieving its sustainability goals.

Four pillars in achieving these goals are empowering people through local content maximization, integration of social dignity and development in the communities we operate, promoting the protection of the environment in harmony with our humanity and harnessing opportunities of our core mandate for economic development and growth of our collective interest.

Additionally, Sustainable Community Empowerment initiatives such as the SME Incubation programme will ensure that the local population benefit from improved infrastructure in roads, healthcare, and educational opportunities.

STRATEGIC PARTNERSHIPS
The signing of this agreement is contingent upon the strong partnerships established between the government of Ghana and its international stakeholders. TCP-UIC Consortium brings a wealth of expertise and technology to the project, ensuring that the project meets the highest standards of operational excellence, sustainability and safety.

The Petroleum Hub complex is a bold step towards Ghana’s economic sovereignty and regional leadership in the petroleum industry.

The development of the first phase is expected to be completed within five years.