ACCRA: President of Ghana Nana Akufo-Addo has launched the construction of a US $12 billion petroleum hub that the government hopes will turn the West African country into a regional energy leader.
The 300,000 barrel-per-day refinery is likely to become a key driver of Ghana’s development.
Ghana, the world’s second-largest cocoa producer, entered the oil industry in 2010. At present the country produces about 132,000 barrels of crude oil per day, along with 325 million standard cubic feet of natural gas daily.
“This project promises to be a cornerstone of our nation’s development,” Akufo-Addo said during a ceremony in the city of Jomoro.
The first phase of the petroleum hub, estimated at $12 billion, will be funded and constructed by a consortium including UIC Energy Ghana, Touchstone Capital Group Holdings, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co.
West Africa approximately consumes 800,000 barrels of petroleum per day, with nearly 90 percent of that being imported, according to the African Refiners and Distributors Association. By 2036, Ghana’s new petroleum hub will be able to meet the region’s demand for refined products and by-products.
However, the project has also faced criticism. Bright Simons, Vice President of the Accra-based think tank IMANI Africa, questioned the viability of the mega project. He added the consortium behind the refinery “is not primed for investment” and said that “the project has no bankable business plan.”
Some residents of the 20,000-acre proposed site of the refinery also protested, asking the government to reduce the footprint to 5,000 acres.
