Ghana Launches West Africa’s First Petroleum Hub to Boost Energy Security

The massive project—planned in three strategic phases between 2024 and 2036—broke ground this year with the launch of the first phase.

Ghana is charting a bold new course in the African energy landscape with the development of West Africa’s first integrated petroleum hub, a multibillion-dollar infrastructure project designed to transform the country into a regional energy powerhouse. The initiative aims to improve regional fuel security, reduce refined petroleum import dependence, and attract large-scale investment into Ghana’s downstream oil and gas sector.

The massive project—planned in three strategic phases between 2024 and 2036—broke ground this year with the launch of the first phase. Key components of this initial stage include a 300,000-barrel-per-day (bpd) refinery, a 90,000-bpd petrochemical plant, expansive storage tank facilities, and marine port infrastructure to support efficient export and import operations.

A Vision for Self-Reliance and Regional Leadership

At the “Invest in African Energies: Accra Investor Briefing” on April 14, Dr. Toni Aubynn, CEO of the Petroleum Hub Development Corporation, shared a detailed vision for Ghana’s energy future. Speaking to local and international stakeholders, he emphasized Ghana’s ambition to lead the regional transition toward energy self-sufficiency.

“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 said. “Ghana will be the first to establish a facility such as this. We are going to rely on investors to develop these important industries. Our target is local investors.”

The government is actively courting both domestic and foreign capital, but the project is notably focused on empowering Ghanaian businesses and ensuring local ownership across the value chain.

Revitalizing Existing Infrastructure and Expanding Capacity

While the Petroleum Hub is a centerpiece of Ghana’s long-term strategy, ongoing modernization of existing infrastructure is also underway. Tema Oil Refinery (TOR), Ghana’s only operational refinery since 1963, continues to play a critical role in reducing the country’s reliance on imported refined products.

Dr. Yussif Sulemana, Managing Director of TOR, explained the refinery’s dual-pronged strategy. “In the short term, our strategy is to maximize existing assets. Medium- to long-term, we are looking at partnerships and strategic investment,” he noted. “We have a lot of investors interested and are looking for capital injection and expertise.”

The revitalization efforts at TOR include equipment upgrades, increased operational efficiency, and a push to attract new technological partners. These improvements are intended to prepare the refinery to operate in harmony with the future Petroleum Hub.

Expanding Storage, Transportation, and Distribution Networks

Beyond refining, Ghana is making heavy investments in storage and transport infrastructure to secure strategic fuel reserves and improve national distribution networks. Bulk Oil Storage and Transportation Company Limited (BOST), which oversees Ghana’s fuel reserves, is leading this expansion.

Nana Amoasi, Technical Advisor of BOST, highlighted key priorities: “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.”

These efforts are expected to streamline product flow across the country, reduce transportation costs, and reinforce Ghana’s position as a hub for energy distribution across West Africa.

Local Content and Human Capital at the Core

In tandem with its infrastructure ambitions, Ghana is prioritizing local content and human capital development. The Petroleum Commission is spearheading initiatives to ensure that Ghanaians play leading roles in all petroleum-related activities.

“We need to maximize the oil and gas industry, and to achieve the stability of the hydrocarbon industry, we need local content,” said Kwaku Boateng, Director of Economics and Local Content at the Commission. “At the Petroleum Commission, we have a strategy to ensure that across every petroleum activity, there is a Ghanaian possibility.”

This drive to build local capacity aligns with broader goals of reducing unemployment, retaining oil wealth within the country, and nurturing a skilled labor force capable of sustaining the industry.

Bridging the Skills Gap Through Collaboration

While Ghana’s local content policies are well-established, stakeholders acknowledge that more must be done to build a globally competitive workforce.

David Pappoe, President of the African Energy Chamber in Ghana, addressed the challenge: “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.”

He stressed the importance of partnerships between governments, private sector players, and educational institutions to close the skills gap and facilitate technology transfer.

A Springboard for Global Engagement

The Accra briefing served as a precursor to the upcoming African Energy Week: Invest in African Energies conference, taking place from September 29 to October 3 in Cape Town. The global event is expected to attract industry leaders, investors, and policymakers, creating a platform for deal-making and showcasing Ghana’s commercial potential in oil and gas.

With the Petroleum Hub project, Ghana is not only addressing its domestic energy needs but also positioning itself as a leader in Africa’s downstream sector. If successful, the initiative could redefine West Africa’s energy dynamics, turning Ghana into a key player in ensuring energy access and affordability across the continent.

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