Ghana is paving the way for Africa’s next major oil hub

Ghana has officially embarked on the construction of a massive $12 billion oil hub, a project expected to significantly boost the country’s position in the global oil and gas industry. Located southwest of Jomoro, the hub will include a 300,000 barrel per day refinery, petrochemical plants and other related infrastructure, positioning Ghana as a key player in the West African energy market.

President Nana Akufo-Addo, who presided over the inauguration ceremony, emphasized the importance of the project to Ghana’s economic future. “The project promises to be a cornerstone of our nation’s development,” Akufo-Addo said. This development marks a bold step for Ghana, which started oil production in 2010 and currently produces about 132,000 barrels per day (bpd) of crude oil.

The oil hub is expected to turn Ghana into a major supplier of refined petroleum products to West Africa, a region that currently imports nearly 90 percent of its oil needs. According to the African Refiners and Distributors Association, West Africa consumes about 800,000 bpd.

However, the project faced criticism from various quarters. Bright Simons, vice president of Accra-based think tank IMANI Africa, expressed skepticism about the viability of the consortium behind the hub, describing the company as lacking a “bankable business plan”. Simons cautioned that the project could be more about land acquisition than actual development.

Local opposition has also emerged, with some residents of the proposed 20,000-acre site expressing concern about the project’s environmental and social impact. Legal challenges are anticipated as farmer cooperatives seek to protect their land rights and reduce the project’s footprint.

Despite these challenges, the Ghanaian government remains committed, citing broad support from other residents and the potential economic benefits of the oil hub. The first phase of the project will be financed by a consortium that includes Touchstone Capital Group Holdings and firms based in China, with completion expected by 2025.

By Julianne Geiger for Oilprice.com

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