Ghanaian government seeks local feedback on petroleum hub plans

The government of Ghana has begun seeking input from local stakeholders for its plan to establish an oil industry hub in Bonyere, a coastal town near the border with Côte d'Ivoire.

Officials in Accra have said they hope to build this hub on a 20,000-acre (80.93-square km) site in the Jomoro municipal district, which lies within the country’s Western region. The complex will be home to multiple facilities, including a 350,000 barrel per day (bpd) oil refinery, a petrochemical plant and storage depots capable of holding 1mn barrels of crude oil and petroleum products, as well as marine jetties and berths that can handle very large crude carriers (VLCCs and ultra-large crude carriers (ULCCs) travelling along the West African coast.

The government has estimated the total cost of the project, which falls within the framework of a wider effort to improve and transform the country’s economy, at around $60bn. It has also said that the hub may generate $1.56bn per year in export tax revenue and create as many as 780,000 jobs. Under Ghanaian law, though, the government cannot launch work on the scheme until it consults with shareholders in the region, which includes the Western Nzema Traditional Area.

Accordingly, Ghana’s Land Use and Spatial Planning Authority (LUSPA) held a consultative meeting in the district last week. The gathering was led by LUSPA CEO Lawrence Dakurah, who said that Accra was trying to ensure that all parties benefited from the scheme.

At the meeting, a key tribal leader – Awulae Annor Adjei III, the paramount chief of Western Nzema Traditional Area – endorsed the government’s plan. He also pledged to make land available for the hub and urged Ghanaian authorities to fast-track the processes of acquiring real estate and compensating the parties that will be affected by the project.

Another attendee – Ernest Kofie, the CEO of the Jomoro municipal district – said he expected the project to benefit the local economy by attracting additional investment. Kofie also speculated, though, that it would draw migrant workers looking for jobs. As such, he said, the municipal assembly is working to improve social infrastructure in order to accommodate the influx.

Members of Ghana’s Parliament approved plans for the establishment of the petroleum hub in late October of last year. Shortly thereafter, the Energy Ministry said it had shortlisted three bidders for the contract to build the facility. It did not name any of the bidders but said that one of the shortlisted firms had pledged to spend up to $15bn on the construction of new storage depots.