Ghana Kicks Off $12 Billion Petroleum Hub Mega-Project

Ghanaian President Nana Akufo-Addo has officially inaugurated the construction of a massive 300,000 barrel-per-day oil refinery, a key part of the government’s plan to establish the country as West Africa’s petroleum hub. The $12 billion project, which will also feature petrochemical plants, is set to transform the region’s oil industry, though it has faced significant criticism.

The refinery will be built in Jomoro, a southwestern city, and will be funded by a consortium including Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co., as announced on state-owned Ghana Television (GTV).

Since discovering oil in 2010, Ghana’s production has reached approximately 132,000 barrels per day of crude oil and 325 million standard cubic feet per day of natural gas. West Africa’s current oil consumption stands at about 800,000 barrels per day, with nearly 90% of this being imported. The new petroleum hub aims to meet the region’s refining needs by 2036, as outlined in a 2018 agreement.

Despite the ambitious goals, the project has sparked controversy. Bright Simons, vice president of Accra-based think tank IMANI Africa, has criticized the consortium, alleging it lacks a solid business plan and is merely speculating on land acquisition.

Local opposition has also emerged, with some residents of the proposed 20,000-acre site protesting and calling for the project’s footprint to be reduced to 5,000 acres. Oliver Barker-Vormawor, a senior partner at the law firm representing affected farmers, argues that the government’s approach disregards valid concerns about the project’s social and environmental impacts, including the displacement of farmers and issues of land rights.

The government has largely dismissed these concerns, highlighting support from other community members who back the development.