Ghana signs $28bn deal to expand petroleum hub with planned 300,000-barrel refinery in Jomoro

The Petroleum Hub Development Corporation (PHDC) signed the agreement in Accra on October 19, 2026, with a consortium led by UAE-based Global Sphere and involving investors and technical partners from South Korea and Mali.

According to Citi Newsroom, the proposed development, known as Lot Two, is expected to strengthen Ghana’s refining, petrochemical, and petroleum storage capacity.

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However, the agreement does not mean the project has secured all its financing. Graphic Online reported that the consortium was still working on investment mobilization and financial structuring, including equity participation and long-term debt financing.

The planned Lot Two development will include a refinery with a capacity of 300,000 barrels per stream day, two petrochemical plants, storage infrastructure capable of holding four million cubic meters of petroleum products, and a multi-berth jetty.

The facilities are expected to be developed over five years, with initial construction activities at the Jomoro site targeted for the first quarter of 2027, subject to the completion of preparatory requirements.

PHDC Chief Executive Officer Dr Toni Aubynn has described the agreement as an important step towards moving the project from planning to implementation.

The corporation has also linked the development to employment creation, technology transfer, and opportunities for Ghanaian contractors, engineers, and businesses.

According to MyJoyOnline, the government views the project as part of a broader strategy to expand domestic value addition in the petroleum industry and strengthen Ghana’s position in the regional energy market.

Despite the scale of the proposed investment, questions remain over how the project will be financed and when outstanding land-related issues will be resolved.

Energy and Green Transition Minister Dr. John Abdulai Jinapor has pledged to lead discussions involving the Ministries of Finance and Lands and Natural Resources, alongside the Attorney-General’s Office, to address the obstacles affecting the project.

Citi Newsroom reported that the minister intends to coordinate the relevant institutions to resolve land acquisition, compensation, and financing issues and create the conditions necessary for the development to advance.

These matters will be critical to the proposed construction schedule. Although the first-quarter 2027 target has been announced, the available reports do not establish that all funding arrangements have been completed or that every land and compensation requirement has been settled.

The distinction is important: signing an investment agreement is a significant milestone, but it is not equivalent to financial close or proof that construction is ready to proceed.

Ghana’s ambition to establish a major petroleum refining and petrochemical center predates the latest agreement.

In August 2024, former President Nana Akufo-Addo presided over a groundbreaking ceremony for an earlier phase of the project, which was associated with a planned US$12 billion investment and another refinery with a proposed capacity of 300,000 barrels per day.

Reuters reported at the time that the wider development faced questions about its commercial viability and opposition from some residents over its land requirements.

The earlier phase and the latest Lot Two agreement are separate components of the broader Petroleum Hub initiative. The signing of the new agreement does not, by itself, demonstrate that the earlier phase has been completed or that the wider project is fully financed.

That history makes progress on land acquisition, compensation, and funding particularly important as the government seeks to advance the latest proposal.

Ghana’s plans are also unfolding amid changes in West Africa’s petroleum market, particularly following the commencement of commercial operations at Nigeria’s Dangote refinery in 2024.

The facility has introduced a major new source of locally refined petroleum products into a region that has historically depended heavily on imported supplies.

As reported by Business Insider Africa, the Dangote refinery represents a significant expansion of Africa’s domestic refining capacity.

For Ghana, the emergence of a major regional competitor raises important questions about the commercial assumptions underpinning the proposed Jomoro complex.