Ghana begins construction of $12b oil refinery

Ghanaian President Nana Akufo-Addo has launched the construction of a 300,000 barrel-per-day oil refinery in Jomoro, aiming to establish Ghana as West Africa’s petroleum hub.

The refinery, part of a $12 billion project funded by Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co., will also include petrochemical plants.

“The project promises to be a cornerstone of our nation’s development,” Akufo-Addo stated on Monday. Phase one will be completed by 2036 and is expected to address the region’s 800,000 barrel-per-day consumption, of which nearly 90 per cent is imported. Critics, however, question the project’s viability.

Bright Simons from IMANI Africa labelled it as “a speculative attempt to grab a landbank for cheap,” highlighting concerns over the consortium’s investment readiness and lack of a bankable business plan.

Some residents have protested the project’s 20,000-acre site, demanding a reduction to 5,000 acres. Oliver Barker-Vormawor, representing affected farmer cooperatives, criticised the government’s approach: “The abrasive manner that the government is proceeding discounts valid concerns around the social and environmental impact of the project, the livelihoods at risk by the displacement of farmers and the unsettled questions of ownership and community land rights.”

The government has dismissed these concerns, citing support from other residents.

Attribution: Reuters

Subediting: Y.Yasser