Ghana has commenced the construction of a 300,000 barrels per day (bpd) oil refinery in an effort to become a major petroleum producer in West Africa.
According to Reuters, phase one of the project, estimated to cost $12 billion, would be funded and constructed by a consortium of construction and venture capital organisations including Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co.
The project is expected to be developed in three phases.
Speaking at the groundbreaking ceremony in the southwestern city of Jomoro on Monday, President Nana Akufo-Addo of Ghana said the refinery project is a cornerstone for the country.
“This project promises to be a cornerstone of our nation’s development, ensuring that all Ghanaian homes and industries have access to reliable, affordable, and environmentally sustainable energy,” Akufo-Addo said.
However, Bright Simons, vice-president at IMANI Africa, an Accra-based think tank, said the consortium behind the project “is not primed for investment (and) the project has no bankable business plan”.
“Our position is that this is a speculative attempt to grab a landbank for cheap,” he said.
Reuters said the refinery aims to supply enough refined and by-products to supply the region by 2036, according to an agreement signed in June 2018.
West Africa consumes about 800,000 bpd, according to the African Refiners and Distributors Association, of which almost 90% is imported.
