President commissions $40m African Bitumen Terminal: Joint Venture between GOIL, SMB - Will lower road construction cost

President Nana Addo Dankwa Akufo-Addo has commissioned a $40-million African Bitumen Terminal in Tema, a joint venture between GOIL and Société Multinationale de Bitumens (SMB) of Cote d'Ivoire.

The plant, with a storage capacity of 7,500 tonnes will store and process base bitumen from SMB in Cote d'Ivoire and refine it into polymer-modified bitumen and bitumen emulsions.

The main operations of the facility include the transfer of bitumen from Bitumen Tanker vessels at the Oil Jetty at the Tema Harbour to the Terminal and the storage into dedicated tank bitumen AC 10 & AC 20 – different penetration-grade bitumens, commonly used in road construction and asphalt applications.

The plant will also produce Polymer Modified Bitumen (PMB), bitumen emulsions, laboratory testing for the quality of products and the distribution of products through bitumen bulk trucks, bitutainers and drums.

The inauguration ceremony yesterday attracted the Prime Minister of Cote d'Ivoire, Robert Beugre Mambe, who led a large retinue of ministers and other government officials to the event.

The Prime Minister was accorded a guard of honour by men and women of the Ghana Armed Forces neatly dressed in their red ceremonial attire.

Regional cooperation

Addressing the gathering before the commissioning, President Akufo-Addo expressed immense pride in the achievement, calling it a testament to regional cooperation and collaboration.

The African Bitumen Plant

He was joined by the Prime Minister of Cote d'Ivoire, who represented President Alassane Ouattara, underscoring the significance of this partnership.

President Akufo-Addo emphasised that the plant was symbolic of the strong ties between Ghana and Cote d'Ivoire, stating that the collaboration exemplified the power of shared vision and resources within ECOWAS.

The President said the products were critical to the development of durable road infrastructure, offering enhanced performance under extreme weather conditions and heavy traffic loads. 

Context

PMB, which is produced by adding polymers to standard bitumen, is known for its superior elasticity, strength, and resistance to cracking, making it ideal for use in high-stress areas such as highways and airport runways.

Bitumen emulsions, on the other hand, are used in road maintenance and construction, offering environmentally friendly solutions that reduce the need for high temperatures during application. Emulsions provide an economical and effective way of maintaining roads, sealing surfaces and supporting infrastructure projects. 

Lower costs

President Akufo-Addo indicated that the ability to produce these essential products domestically would not only improve the quality of roads in Ghana but also lower construction costs by reducing the dependence on imported bitumen.

He highlighted that the plant had come at a crucial time, as his government continued to make significant investments in expanding the country’s road network.

“Since 2017, we have embarked on the most extensive road construction programme in Ghana’s history, with over 12,000 kilometres of roads built,” he said.

“This facility will complement the government’s efforts, producing the necessary volumes of polymer modified bitumen and bitumen emulsions to meet the growing demands of our infrastructure sector,” the President added.

President Akufo-Addo praised the joint venture as a model for future collaborations within ECOWAS, stressing that cooperation between national companies can drive industrialisation and economic development across the region.

“This initiative demonstrates what we can achieve when we pool our resources, expertise and resolve as nations,” the President remarked. “It is a symbol of how cooperation between our two nations can serve as a catalyst for regional development.”

President Akufo-Addo said the facility was also expected to contribute to job creation and boost Ghana’s export potential.

“By producing high-quality bitumen products domestically, Ghana will not only meet its local demand but also supply neighbouring West African countries, generating foreign exchange earnings for the economy,” he added.

 The President underscored the importance of adhering to the highest standards in producing bituminous products that met international specifications, saying that would position the country as a leader in the bitumen industry in the region.

 Kwame Osei-Prempeh, Managing Director, GOIL PLC, speaking at the commissioning of the African Bitumen Plant in Tema

President Akufo-Addo took the opportunity to reiterate his government’s commitment to creating an enabling environment for industrial ventures such as the GOIL/SMB Bitumen Plant.

He noted that the success of such projects was proof of the soundness of the government’s economic policies and the resilience of the Ghanaian economy, even in the face of global challenges.

The President also urged the Minister of Roads and Highways, Francis Asenso-Boakye, to ensure that the high-quality bitumen from the GOIL/SMB Plant was used in road projects across the country.

Wider product portfolio

The Minister of State at the Ministry of Energy, Herbert Krapa, indicated that with the plant in place, the petroleum product portfolio was about to open up where existing local refineries could now maximise their configurations to process a wider range of products, including heavier grades to meet the demand and specifications of the plant.

That, he explained, was in line with the national energy strategy to make it more resilient and more adaptable to global market dynamics.

Mr Krapa stated that together with the National Petroleum Authority (NPA), the Ministry had developed a framework to regulate the importation, storage, processing and marketing of bitumen in the country.