Adnan Adams Mohammed
As the Africa continent continually faces a significant energy infrastructure deficit, Ghana is strategizing to close its own energy infrastructure gap as it is developing West Africa’s first integrated petroleum hub.
The hub aims to position Ghana as a downstream energy sufficiency nation in the sub-region while enhancing regional fuel security and reducing petroleum costs.
This comes as the African Energy Chamber is advocating for home grown solutions to deal with the energy infrastructure gap among African countries which is estimated at an annual US$20 billion. Ghana and other oil producing nations on the continent need to invest heavily into the sector to avoid an energy curse, said the Executive Chairman of African Energy Chamber, N.J Ayuk, while speaking to journalists after hosting the Accra Investor Briefing for stakeholders in Accra.
“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. Toni Aubynn, CEO of the Petroleum Hub Development Corporation said, sharing details on the investment opportunities tied to the hub at the event. “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 hub is being developed in three phases between 2024 and 2036. The first phase, which broke ground in 2024, includes a 300,000-barrel-per-day (bpd) refinery, a 90,000-bpd petrochemical plant, storage tanks and marine port infrastructure.
The Accra Investor Briefing by the African Energy Chamber and the Ministry of Energy and Green Transition offers global investors exclusive insights into Ghana’s fiscal and regulatory developments since commercial oil discovery.
Although Africa is progressing in the development in the sector, the chamber believes more work needs to be done to attract investors, and the Executive Chairman of the Chamber highlighted the need for huge investments in infrastructure.
“This is not just Ghana alone but the whole of Africa needs to find the solution to fix its infrastructure in the energy sector. Countries must find the fix on how to deliver affordable energy to their citizens without always relying on any complex facility”, he said.
“That infrastructure deficit needs to be closed. It requires about 15 to 20 billion dollars in investment every year, and that is a lot of money we need. But you know, whenever you close that gap then it’s easy to bring gas to people every day. So we need to create pipelines and close that infrastructure deficit.”
As part of the initiatives to transform the sector, Bulk Oil Storage and Transportation, BOST has hinted of plans to begin construction of some storage facilities for the downstream sector.
Technical advisor at BOST, Nana Anamoa Sakyi, is confident that construction will begin soon on some storage tank facilities and the expansion of pipelines by BOST.
The event provided a first-hand look at Ghana’s energy roadmap, positioning the country as West Africa’s premier energy hub and unlocking multi-million-dollar investment opportunities.
Meanwhile, Ghana’s only state refinery, the Tema Oil Refinery, already plays a key role in reducing refined petroleum product imports. Although the refinery has been operational since 1963, modernization efforts are underway to improve its units and increase productivity. Dr. Yussif Sulemana, Managing Director of Tema Oil Refinery, explained that the refinery’s success in this regard is driven by efficient work processes. “Short-term, our strategy is to maximize existing assets. Medium- to long-term, we are looking at a partnership and strategic investment. We have a lot of investors interested and are looking for capital injection and expertise.”
On the storage side, Ghana is investing in infrastructure to boost capacity and enhance its inter-depot pipeline networks. Bulk Oil Storage and Transportation (BOST), responsible for the country’s strategic fuel reserves, is working to strengthen industry infrastructure. Nana Amoasi VII, Technical Advisor of BOST, stated, “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.”
In line with this surge in downstream investment, Ghana is also prioritizing local content and human capital development to unlock greater value for the local population.
Kwaku Boateng, Director of Economics and Local Content at Ghana’s Petroleum Commission, emphasized, “We need to maximize the oil and gas industry, and to achieve the stability of the hydrocarbon industry, we need local content. At the Petroleum Commission, we have a strategy to ensure that across every petroleum activity, there is a Ghanaian possibility. Ghanaian companies are strong partners to the international oil companies.”
However, further work is needed to strengthen Ghana’s workforce capacity.
David Pappoe, President of the African Energy Chamber in Ghana, pointed out that both the government and private companies have roles to play. “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.” The Invest in African Energies: Accra Investor Briefing served as a prelude to the African Energy Week: Invest in African Energies conference, taking place from September 29 to October 3 in Cape Town, South Africa. The event highlighted commercial oil and gas opportunities in Ghana, setting the stage for further discussions and deal-making in Cape Town
