President Akufo-Addo Breaks Ground On $12 Billion Petroleum Hub Project

President Akufo-Addo Breaks Ground On $12 Billion Petroleum Hub Project

Communications Bureau Latest News 19 August 2024

In a significant move poised to reshape Ghana's energy landscape, President Nana Addo Dankwa Akufo-Addo has broken ground on the first phase of the ambitious Petroleum Hub Project.

The ceremony, held on August 19, 2024, in Nawule, Jomoro, Western Region, marks the commencement of a transformative journey aimed at creating a modern, diversified, and financially sustainable energy economy for the country.

The Petroleum Hub Project, which carries an estimated total cost of $12 billion, is designed to elevate Ghana's standing as a key player in Africa's energy sector. The hub, which will be developed in three independent phases, is set to include a 300,000 barrels per day (bpsd) refinery, a petrochemical plant, and extensive storage and port facilities. The project's scale and ambition highlight Ghana's commitment to addressing its energy challenges and leveraging its resources for long-term growth.

During the groundbreaking ceremony, President Akufo-Addo expressed his optimism about the project's potential to transform Ghana's economy. "Today is a very good day for our homeland, Ghana," he remarked. "This project promises to be a cornerstone of our nation's development, ensuring that all Ghanaian homes and industries have access to reliable, affordable, and environmentally sustainable energy."

The President underscored the strategic importance of the project, noting that it would not compete with existing refineries in the region but rather complement them, with a focus on serving the African Continental Free Trade Area (AfCFTA) market. The hub is expected to create approximately 780,000 direct and indirect jobs, stabilize the national currency, and stimulate local economic development.

President Akufo-Addo also highlighted the environmental considerations embedded in the project, emphasizing the incorporation of cutting-edge technology and green buffers to support local fauna and flora. "We envision a facility that will be a benchmark for crude and petroleum product pricing in Africa," he stated, stressing the project's alignment with global environmental sustainability standards.

The first phase of the project, led by the TCP-UIC Consortium, represents a crucial step towards achieving Ghana's energy goals. The consortium, comprising several international and local partners, has been chosen for its technical expertise and financial capacity to deliver on the project's ambitious timelines. President Akufo-Addo assured the consortium of the government's full support, stating, "Your success is our priority."

In addition to the economic and environmental benefits, the project is expected to have a profound social impact, particularly in the Jomoro enclave. The President announced the allocation of GH¢200 million by the Ministry of Finance for land compensation to affected communities, recognizing the generous contributions of the Chiefs and people of Jomoro who have offered their land for the project.

The project is also expected to lead to the establishment of the Jomoro Petroleum Hub Development Corporation (JPHDC), with its headquarters in Jomoro. The President directed the Ministry of Energy to ensure the training of 200,000 skilled, semi-skilled, and unskilled Ghanaians in preparation for the project's takeoff, with a significant portion of these workers coming from the Jomoro area.

The groundbreaking ceremony was attended by key stakeholders, including government officials, traditional leaders, and representatives from the private sector. President Akufo-Addo commended their dedication and collaboration, which have been instrumental in bringing the project to fruition. He called on all stakeholders to unite in making the Petroleum Hub Project a reality, emphasizing its importance for future generations.

As Ghana embarks on this bold initiative, the Petroleum Hub Project stands as a testament to the nation's determination to achieve energy independence, economic diversification, and sustainable development. The journey ahead is filled with challenges, but with unwavering commitment and collective effort, Ghana is poised to secure a brighter and more prosperous future for all its citizens.

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