The petroleum hub is a ground-breaking megaproject development in the Jomoro Municipality of the Western Nzema Traditional Council in the Western Region of Ghana.
PHDC is intended to be a leading integrated petroleum complex created to add value to Africa’s upstream and downstream oil and gas value chain.
Upon completion, the hub will span over an area of 20,000 acres and will house a complex web of onshore, offshore, and ancillary assets not limited to refineries, petrochemical plants, and storage tanks intended to change the face of the petrochemical industry on the continent. A total of 780,000 jobs will be created during the development phase and beyond with a significant positive outlook on the economy. It is expected to transform the economy through the export tax of about $1.56 billion by 2030, increase GDP by about 70 per cent, and create jobs over 780,000.
In a move to actualize the project, the Government of Ghana on 18th June 2024 signed a US$12 billion agreement with TCP-UIC Consortium which comprises Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd for the development of the first phase of the Petroleum Hub project in the Jomoro Municipal Area in the Western Region.
This project aims at positioning Ghana as the destination for energy trading in the West Africa sub-region. This agreement is a critical step toward the President’s vision of Ghana becoming a regional hub for petroleum refining, storage, and distribution.
On 19th August 2024, the President of the Republic of Ghana, H.E. Nana Addo Dankwa Akufo-Addo performed a symbolic ground-breaking ceremony at Nawule in the Jomoro Municipality of the Western Region for Phase One of the Petroleum Hub Project.
In addressing the Chiefs and residents of Jomoro, the President said the successful signing of the phase one agreement between the PHDC and TCPUIC Consortium on 18 June 2024 was a key milestone to bringing us to today and demonstrates government commitment to forwarding strategic partnerships that will drive the energy sector forward and ensure that all Ghanaian homes and industries get access to reliable, affordable, and environmentally sustainable energy.’’
He added that this is the first phase of our three-phase Hub estimated to cost 12 billion USD and it is expected to resolve in the construction of 300,000 Barrels per day refinery, 3 million cubic meters of storage tanks, petrochemical plant, jetty, and port infrastructure, off-base and ancillary infrastructure and social amenities.
He disclosed that the project has been divided into three independent phases, each phase, upon completion, will serve as a stand-alone hub, forming collectively a petrochemical industrial Hub sprawling across some 20,000 acres. He said this method would ensure that no single consortium or investor can halt the project’s progress.
He posited that upon conclusion, the project will complement, not compete, with existing refineries in Ghana and the West Africa Region such as Tema Oil Refinery, Sentuo, and Dangote. Led by the private sector, it is designed to capture and sell the African Continental Free Trade Area market, which is valued currently at some 3.4 trillion USD.
He said he envisaged a facility equipped with cutting-edge technology, prioritizing environmental sustainability with green buffers supporting local fauna and flora. It will be a benchmark for crude and petroleum product pricing in Africa and promises to create some 780,000 direct and indirect jobs, help stabilise the currency, stimulate local economic development, and position Ghana as Africa’s premier petroleum and chemical petrochemical product.
He added that he was confident this hub would be a secure, innovative workplace adhering to the highest industry standards and optimistic TCP-UIC consortium chosen for the first phase possesses the technical expertise and financial strength to meet the regulated timelines and standards.
To the esteemed investors, TCP UIC Consortium, China Wuhan Engineering Company Limited, China Construction Third Engineering Bureau Company Limited, Touchstone Capital Group Holdings Limited, UIC Energy Ghana Limited, Touchstone UIC Energy Ghana Limited and Touchstone UIC Gamma Investments Limited, he assured them of government’s support in this exercise. Your success is our priority. I am immensely proud of our team and the journey ahead. This project is a bold solution to the challenges confronting the energy sector. To ensure we stay connected to the action, I propose that the headquarters of the Petroleum Health Development Corporation be located in Jomoro and renamed Jomoro Petroleum Hub Development Corporation.
To support the project, the President said it is crucial to have a skilled workforce and therefore directed the Ministry of Energy and the Board to ensure the training of some 200,000 skilled, semi-skilled, and unskilled Ghanaians in preparation for the project take-off, most of whom should come from the Jomoro enclave.
He acknowledged the commitment of the stakeholders and people of Jomoro in generously offering their lives to the development and advancement of this important project. In recognition of their contribution and with deeper appreciation, the President said he had instructed the Ministry of Finance to release as the first step towards the discharge of the liability for compensation from 200 million Cedis to commence the payment of land compensation to the affected communities.
He commended the stakeholders whose unwavering efforts to make the project reach this level and I called on them to unite in making this vision a reality for current and future generations.
He encouraged Ghanaians to seize the opportunity the project presents and excel in every aspect and urged them to remain focused on the long-term goals and work tirelessly to build a proud nation.
In closing, the President expressed gratitude to all who have contributed to the realization of the Petroleum Hub project. ‘’Your hard work and dedication have brought us to this critical moment, and I am confident we will continue to make great strides together. Let us move forward with optimism and determination, knowing that the future of Ghana is bright and full of promise’’.
In attendance was Awulae Annor Adjei III (Paramount Chief of the Western Nzema Traditional Area and Board Chairman, PHDC), Nanamo, Hon. Louisa Iris Arde, Municipal Chief Executive-Jomoro Municipal Assembly, Board of Directors of PHDC AND Key stakeholders, Mr. Charles Owusu-CEO, PHDC, Hon. Kwabena Okyere Darko-Mensah, Western Regional Minister, Hon. Herbert Krapa, Minister of State at the Ministry of Energy
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