Key facts
- Ghana's Petroleum Hub Development Corporation (PHDC) will begin phase one construction of its $60bn refinery project by year-end.
- The project is awaiting land compensation payments from the state.
- Phase one includes two 300,000 b/d refineries, a 90,000 b/d petrochemical plant, and 3mn m³ of storage.
- The Jomoro site allows for larger vessels than the existing Tema port.
- The completed refinery complex is intended to supply refined products across Africa.
Ghana's privately-owned Petroleum Hub Development Corporation (PHDC) is preparing to commence the first phase of construction for its $60bn refinery project by the end of the year. Operations and technical director Kwabena Owusu Abrokwa stated that the project's start is contingent on the state finalizing compensation payments to landowners affected by the land acquisition.
Once the land compensation process is concluded this year, construction is expected to begin at the Jomoro site. The initial phase involves building two 300,000 b/d refineries, a 90,000 b/d petrochemical plant, approximately 3 million cubic meters of storage capacity, and a jetty. This first phase is projected to take five years to complete.
Initial agreements and contracts are in place for the commencement of the first phase, pending the resolution of land acquisition and compensation issues. PHDC had previously signed an agreement with Mighty Gager for the construction of 2 million tonnes of oil storage tanks. Abrokwa indicated that construction for the first phase is "almost taking off."
Halimatu Sadia Abdulai, PHDC's deputy head, had previously highlighted that adequate compensation and excess land purchase were significant challenges for the project. In response to local concerns, PHDC reduced the project's land footprint from 20,000 acres to 12,500 acres, while retaining access to wetlands for preservation.
The chosen location in Jomoro offers deep offshore waters, enabling the acceptance of any vessel size, a contrast to the shallower waters at the Tema port. This strategic positioning will allow the refining complex to handle large crude cargo and export refined products efficiently. Upon completion, the export-oriented refinery aims to supply refined products to West Africa and the broader African market, anticipating strong demand growth driven by population increases and economic development.