Ghana’s President Nana Akufo-Addo has commissioned the construction of an massive $12 billion oil refinery to enhance the country’s position as a strategic petroleum dealing center in the region. The project has been perceived by many as a great move towards the advancement of the nation, though it has sparked controversies and doubts among many. A West African country that manufactures cocoa, Ghana started producing oil in 2010 and currently pumps about 132,000 barrels of crude oil and 325 million standard cubic feet of natural gas daily as reported by Reuters.
President Akufo-Addo who made these remarks at the project site in Jomoro, a southwestern city, said the government sees this as an agenda setter for the country as it will turn into a ‘corner stone of our nations ‘development. ’ In addition to the extraction and refining of oil, the project will also comprise of petrochemical plants among other related activities.
Construction cost
The initial phase of the refinery project is estimated to be worth approximately $12 billion which is to be funded and constructed by the consortium of firms. This group comprises of Touchstone Capital Group Holdings, UIC Energy Ghana Company, China Wuhan Engineering Company and China Construction Third Engineering Bureau Company.
West Africa today uses an average of 800,000 barrels of oil per day, but less than 10% of the oil it uses is produced domestically, as approximately 90% is imported. This has left Ghana overly reliant on importation to meet its consumption needs and this is something that its ambitious petroleum hub project seeks to eliminate by ensuring that the region consumes petroleum products and by-products produced within the country by 2036. This vision was actually initiated by signing a memorandum of understanding in June 2018.
$12 billion oil refinery will be constructed in three phases between 2024 and 2036 the integrated hub will house a complex web of onshore and offshore ancillary assets not limited to only refineries, petroleum plants, and storage tanks.
Challenges
However, the government alone has expressed positive sentiments towards the project as it has attracted negativity as well as controversies. An official of the Accra-based economic research organization, Bright Simons, has raised his concerns, asking whether the consortium in charge of the project is the best one to do the job. He stated that the group is ill-suited for such an investment and that the project does not have a realistic and acceptable business model. Simons also thought that there are possibilities of the project being used as a strategy to buy land in the area cheaply. Compounding this development, other populace of the proposed 20,000 acre for the petroleum hub are opposed to it.
They have demonstrated against the plans, insisting that the size of the project should be no more than 5,000 acres. Nevertheless, the Ghanaian authorities are determined to continue the implementation of the current vision of the petroleum hub as a key progressive tool in the country’s economy.
Read also Africa’s First Nuclear Energy Training Hub Launched in Accra, Ghana
Exciting news about the commencement of the $12 billion oil refinery in Ghana! For large-scale projects like this, precise cost estimating is essential. Check out ProcoreEstimators for expert services that provide detailed and accurate cost estimates, helping ensure that such monumental projects are well-managed and financially sound.
Looks like in the coming months, Ghana will be site of numerous energy-related works such as in oil & gas, as well as, possibly, nuclear energy. Workers will be streaming into Ghana for jobs soon!