Ghana secures US$28bn partnership for Petroleum Hub Development

Ghana's President John Dramani Mahama recently applauded the Petroleum Hub Development Corporation (PHDC) for achieving a significant US$28 billion investment agreement with an international consortium led by Global Sphere. This collaboration aims to advance Phase Two of Ghana's Petroleum Hub project, with the goal of enhancing the nation's oil production by connecting it to domestic refining, gas processing, and petrochemical manufacturing.

Under this agreement, the consortium, comprising investors and technical partners from South Korea, the United Arab Emirates, and Mali, will develop a 300,000 barrels per stream day refinery, two petrochemical plants, four million cubic meters of storage facilities, and a multi-berth jetty. These facilities are projected to be constructed within five years, with initial construction activities starting in the first quarter of 2027, contingent on meeting certain conditions.

Mahama emphasized the crucial role of infrastructure development to refine crude oil locally and broaden Ghana's industrial capacity, as the country's oil production continues to grow. The Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, highlighted the significance of local content, ensuring that Ghanaian businesses and professionals benefit from the sector's developments.

The Petroleum Hub project is anticipated to bolster Ghana's standing in the regional energy market, generate employment, and stimulate industrial growth. However, it remains to be seen whether the entire US$28 billion will be invested and if the financing and construction processes will be finalized.