The President of Ghanaian, President Nana Akufo-Addo has officially flagged off the construction of a 300,000 barrel-per-day oil refinery.
This development will position Ghana as a key petroleum hub in the region while also known as the world’s second-largest cocoa producer.
President Nana speaking at the launching on Monday: “The project promises to be a cornerstone of our nation’s development”.
Phase one of the project, which is located at the southwestern city of Jomoro, which will also include petrochemical plants is estimated to cost $12 billion, to be funded and constructed by a consortium including Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co.
Historical data shows that West Africa is a large consumer of petroleum with about 800,000 barrels of oil per day, with nearly 90% of that being imported, according to the African Refiners and Distributors Association. Ghana’s petroleum hub project aims to meet the region’s demand for refined products and by-products by 2036.
This project is not without critics and doubts about it’s possibility. Bright Simons, a vice president at the Accra-based think tank IMANI Africa, thinks that the consortium behind the refinery “is not primed for investment and the project lacks a bankable business plan,” according to his statement.
“Our position is that this is a speculative attempt to grab a landbank for cheap,” he added.
Other prominent citizens also lend their voices on the viability of the project and proposes the 20,000-acre sitte be reduced to 5,000 acres.
Authorities have however remained positive in continuing with the petroleum hub project despite the oppositions.
