Ghana is positioning itself as a regional petroleum hub with an ambitious downstream agenda, revealed at the Invest in African Energies: Accra Investor Briefing on April 14th.
This briefing served as a prelude to the African Energy Week: Invest in African Energies conference in Cape Town, outlining Ghana’s strategy to enhance regional fuel security and reduce petroleum costs.
The centerpiece of Ghana’s plan is the development of West Africa’s first integrated petroleum hub, a project spanning three phases from 2024 to 2036. The first phase, already underway, includes the construction of a 300,000-barrel-per-day (bpd) refinery, a 90,000-bpd petrochemical plant, storage tanks, and marine port infrastructure.
Dr. Toni Aubynn, CEO of the Petroleum Hub Development Corporation, emphasized the scale of the project and the need for investment. “Our responsibility is to ensure that we bring the ideas of the state into reality: that is to build three refineries and five petrochemical plants,” Dr. Aubynn stated, highlighting Ghana’s pioneering role in establishing such a facility. He further added, “We are going to rely on investors to develop these important industries. Our target is local investors”.
Ghana’s existing Tema Oil Refinery plays a crucial role in reducing the nation’s reliance on imported refined petroleum products. Dr. Yussif Sulemana, Managing Director of Tema Oil Refinery, discussed ongoing modernization efforts to improve the refinery’s units and increase productivity. “Short-term, our strategy is to maximize existing assets. Medium- to long-term, we are looking at a partnership and strategic investment. We have a lot of investors interested and are looking for capital injection and expertise,” Dr. Sulemana explained.
In addition to refining capacity, Ghana is also focused on expanding its storage infrastructure and inter-depot pipeline networks. Nana Amoasi VII, Technical Advisor of Bulk Oil Storage and Transportation (BOST), outlined plans to strengthen the country’s strategic fuel reserves. “Going forward, we plan to double our fleet of barges and introduce a pipeline from Tema to the Accra Plains Depot. We want to develop another storage facility and ensure that we use alternative fuels,” Nana Amoasi VII stated.
Recognizing the importance of local participation, Ghana is prioritizing local content and human capital development alongside downstream investments. Kwaku Boateng, Director of Economics and Local Content at Ghana’s Petroleum Commission, stressed the need to maximize the benefits of the oil and gas industry for the local population. “We need to maximize the oil and gas industry, and to achieve the stability of the hydrocarbon industry, we need local content. At the Petroleum Commission, we have a strategy to ensure that across every petroleum activity, there is a Ghanaian possibility. Ghanaian companies are strong partners to the international oil companies,” Kwaku Boateng said.
However, challenges remain in strengthening Ghana’s workforce capacity. David Pappoe, President of the African Energy Chamber in Ghana, emphasized the shared responsibility of the government and private companies in addressing this issue. “Ghanaian companies have to build capacity… Without human capacity, technology and knowledge, you cannot compete. We want to drive collaboration across the African continent. Through collaboration, we will be on our way to ending energy poverty,” Pappoe noted.
The Invest in African Energies: Accra Investor Briefing successfully highlighted the commercial opportunities within Ghana’s oil and gas sector, setting the stage for further discussions and potential deals at the African Energy Week: Invest in African Energies conference in Cape Town from September 29 to October 3.