Ghana starts construction of $12 billion petroleum hub
Ghanaian president Nana Akufo Addo broke ground for the construction of an oil refinery capable of processing 300,000 barrels per day. The government hopes that this will transform the West African nation into a regional petroleum hub. However, critics claim the project has flaws.
Ghana, second largest cocoa producer in the world, began producing oil in 2010. The current output is around 132,000 barrels per day (bpd) of crude oil, and 325 million cubic feet of natural gas.
The project will be the cornerstone for the development of our country," Akufo Addo said on Monday evening at the site in Jomoro. It also includes petrochemical facilities.
He said that the consortium Touchstone Capital Group Holdings will fund and construct phase one of the project. The estimated cost is $12 billion.
According to the African Refiners and Distributors Association (ARDA), West Africa consumes around 800,000 barrels per day, almost 90% of which is imported.
According to an agreement signed on June 2018, the petroleum hub will supply enough refined products and by-products by 2036 to supply the entire region.
The plan is not for everyone.
Bright Simons is a vice-president at the Accra-based IMANI Africa think tank. He said that the consortium behind the initiative "is not ready for investment" and the project does not have a bankable business plan.
He said: "Our position is this is a speculative effort to grab a large landbank at a low price."
Residents of the proposed hub site, which would cover 20,000 acres, have protested against the plans and demanded that the footprint be reduced to only 5,000.
Oliver Barker Vormawor is a senior lawyer at a law firm that represents some of the affected farmer cooperatives. He said his clients will not back down.
The government's abrasive approach to the project ignores valid concerns about the project's social and environmental impacts, livelihoods that are at risk due to the relocation of farmers, and unresolved questions regarding ownership and land rights.
The government has rejected these concerns citing petitions of other residents who support the project. (Editing by Alessandra Prrentice and Conor Humphries).
(source: Reuters)
