The establishment of a proposed Petroleum and Petrochemical Hub in the Western Region is expected to earn Ghana about US$1.56 billion in export tax.
It will also create approximately 780,000 direct and indirect jobs in the country when completed.
The project, when completed is again expected to increase Ghana’s Gross Domestic Product (GDP) by 130% through injection of US$60 billion into the country’s economy by the year 2030.
Furthermore, the Hub will come with basic social amenities such as schools, health facilities, and leisure parks, which will improve the social well-being of the people in the catchment area and the country as a whole.
Chairman of the Select Committee on Mines and Energy of Parliament, Emmanuel Akwasi Gyamfi, disclosed this during second reading of the Petroleum Hub Development Corporation Bill, 2020.
In 2019, the Ministry of Energy, in line with a strategy to develop a petrochemical base in Ghana was granted approval by Cabinet in February to establish a petroleum and petrochemical hub in the Western Region.
The project is set to lead to the establishment of major infrastructure for refining and petrochemical processing, discharge, storage, distribution, transportation and trading of petroleum products using Ghana as a Hub for the West African sub-region and the world at large.
It will also involve the development of infrastructures such as refineries, port terminal facilities, storage facilities as well as petrochemical and Liquefied Natural Gas (LNG) terminals with a network of pipelines sufficient enough to supply petroleum and petrochemical products to meet the domestic and West African sub-regional markets.
Presenting the report to the House, Hon. Akwasi Gyamfi stated that establishment of the Hub would contribute enormously to the economic growth of the country through value addition to the country’s petroleum resources and job creation.
“It will provide the country with LNG facilities for power production and drive the growth of various industries including petrochemicals.”
“Tax receipts from the downstream value chain operations will boost government’s revenue to undertake development interventions,” he said.
Contributing to the motion, a Deputy Minister for Energy, Mr Joseph Cudjoe noted that the central location of Ghana in the West African region is a major factor that prompted the initiative in addition to the country’s political stability and access to the West African market.
He indicated that the project will cover a total land size of about 20,000 acres, which would be provided with relevant amenities like railway, road and air transportation networks.
He disclosed that out of an estimated total cost of US$60, the government will contribute US$6 billion representing 10% of the total investment cost and leveraging on private capital to finance the remaining ninety percent funding requirements.
He assured that increasing demand for consumption of petroleum products and untapped markets in Sub-Saharan African countries justifies the economic viability of the project.