Ghana has officially launched the construction of a $12 billion petroleum hub, a project that aims to boost the country’s role in the global oil and gas sector. The hub, situated in Jomoro in southwestern Ghana, will feature a refinery with a capacity of 300,000 barrels per day, petrochemical plants, and other supporting infrastructure. This initiative is set to make Ghana a major player in West Africa’s energy market.
President Nana Akufo-Addo, who led the groundbreaking ceremony, highlighted the project’s importance for Ghana’s economic future. “This project is set to be a key element in our nation’s development,” Akufo-Addo remarked. Ghana began oil production in 2010 and currently produces around 132,000 barrels per day of crude oil.
The new hub aims to position Ghana as a leading supplier of refined petroleum products in West Africa, a region that currently imports nearly 90% of its petroleum needs. The African Refiners and Distributors Association reports that West Africa consumes approximately 800,000 barrels per day.
Despite the project’s promise, it has faced criticism. Bright Simons, vice president of the Accra-based think tank IMANI Africa, has expressed doubts about the feasibility of the consortium behind the hub, suggesting it lacks a solid business plan. Simons cautioned that the project might focus more on acquiring land than on actual development.
Local opposition has also arisen, with residents from the proposed 20,000-acre site raising concerns about the environmental and social impacts of the project. Legal disputes are expected as farmer cooperatives seek to safeguard their land rights and minimize the project’s impact.
Nevertheless, the Ghanaian government remains dedicated to the project, citing widespread support from other residents and the potential economic benefits. The first phase of the hub will be financed by a consortium including Touchstone Capital Group Holdings and several Chinese firms, with completion anticipated by 2025.