- GoG ready to commit US$5bn
- Hub to be completed by 2030
Private sector investment into making Ghana the Petroleum Hub in the sub-region is valued at US$50 billion as government hopes to inject some US$5 billion to realize the target, CEO of the Chamber of Bulk Oil Distributors (CBOD), Mr. Senyo Hosi has revealed.
Speaking to the Goldstreet Business at the Ghana International Petroleum Conference (GhIPCON) in Accra, Hosi said though the country does not have the technical capacity to achieve that agenda yet, location, political stability and a willing industry currently favours it.
“What we urgently need is to shape policy and exert more action in order to grow the investor confidence,” Hosi said.
He explained that the private sector being the driver of policy, needs to inform government on what exactly has to be done to bring life into the project.
“That is why government need not fail in providing the right structures and systems in place. Anything contrary to that could frustrate investors from bringing that significant amount.
The Energy Ministry, National Petroleum Authority, the Association of Oil Marketing Companies and the Chamber of Bulk Oil Distributors, Hosi noted, should be able to get a sense of what is required to bring that amount from investors.
“Until that is done, we’ll still be keeping a vision” he said.
The hub, when completed, is expected to deepen linkages between the upstream and downstream sectors.
“Ghana produces crude and gas, how will that translate into our downstream activities? Should it be a hub for refineries, petrochemical industries? How will that move investors from Dubai and elsewhere to move capital here for business? Hosi asked, adding, “Those are the critical questions that need to be answered.
Government seeks to make Ghana, Africa’s first petroleum hub by 2030, with the hub enclave requiring a total land size of about 20,000 acres to accommodate the various types of infrastructure necessary for its operations.
The hub, to be situated at the Bonyere traditional area in the Jomoro District of the Western Region, is expected to have 90 percent of its infrastructure funded by private investors with the rest of shares controlled by government.
Over the 12-year period, (2018-2030), the project would be executed in three phases, preceded by some preparatory activities including; concept development, structuring the legal and regulatory regime, and establishing the Petroleum Hub Development Authority, among others.
By Wisdom Jonny-Nuekpe