President cuts sod for $12 billion Petroleum Hub Project
President Nana Addo Dankwa Akufo-Addo has performed a sod-cutting ceremony for the construction of the first phase of the Petroleum Hub project at Nawule in the Jomoro District in the Western Region.
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The three independent phases of the project, estimated at $12 billion, are to ensure value addition to the country’s oil and gas resource to create a modern, diversified and financially sustainable energy economy for the country.
They are a 300,000 barrels per day (bpsd) refinery, a petrochemical plant, and extensive storage and port facilities.
The project is also expected to lead to the establishment of the Jomoro Petroleum Hub Development Corporation (JPHDC), with its headquarters in Jomoro.
The first phase of the project, led by the TCP-UIC Consortium, comprises many international and local partners and is chosen for its technical expertise and financial capacity to deliver on the project’s ambitious timelines.
The Petroleum Hub Project has been designed to elevate the country’s standing as a key player in Africa's energy sector, highlighting Ghana's commitment to addressing its energy challenges and leveraging its resources for long-term growth.
At the ceremony, which was attended by key stakeholders, including government officials, traditional leaders, and representatives from the private sector yesterday, President Akufo-Addo expressed optimism about the potential of the project to transform Ghana's economy.
"Today is a very good day for our homeland, Ghana," he stated, adding "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."
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The President explained that the project 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, stabilise the national currency and stimulate local economic development,” he stated.
President Akufo-Addo also highlighted the environmental considerations embedded in the project, emphasising 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.
President Akufo-Addo assured the consortium of the government's full support, stating, "Your success is our priority."
Land compensation
The President announced the allocation of GH¢200 million by the Ministry of Finance for land compensation to affected communities, recognising the generous contributions of the chiefs and people of Jomoro who had offered their land for the project.
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.
Vision
The Minister of State at the Ministry of Energy, Herbert Krapa, commended President Akufo-Addo for the vision which had moved the country a step closer to becoming the number one petroleum hub on the African continent which had a population of over a billion with a combined Gross Domestic Product (GDP) of over $3 trillion.
He said Africa would look to Ghana for petroleum product security, affordability and quality.
“Through jobs, skills, improved standard of living, and altogether massive economic activity, Jomoro will be transformed into a modern city because of this project.
Like petroleum hubs around the world, our plan is to foster sustainable development and economic growth to build a more prosperous future for all our people,” Mr Krapa added.
Citing the South Korean example, he said Ulsan was home to one of the world's largest oil refineries, and that the small fishing town was designated as a special industrial district with a focus on petrochemicals because it had developed into a world-class industrial city, helping Korea to become one of the largest exporters in the world today.
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He said Jurong Island in Singapore was also the heart of that country's chemical and energy industries, employing thousands and impacting an entire nation's transformation.
“And right here in Nigeria, the Dangote refinery looks to process 650,000 barrels of crude oil daily at full capacity, and the people of Lekki and surrounding communities have experienced first-hand, the benefits of the refinery in education, health care, and infrastructure projects,” Mr Krapa stated.
Some of the personalities at the ceremony were the Paramount Chief of the Western Nzema Traditional Area, Awulae Annor Adjaye III, who is also the Board Chairman of the PHDC, chiefs, elders, parliamentary candidates from the National Democratic Congress (NDC) and the New Patriotic Party (NPP) and a large crowd of people from the area.
Awulae Adjaye urged the people in his area to pray for the speedy completion of the project to benefit them and the country in general.
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