Ghana signs $28bn deal with UAE-led group for second phase of Jomoro petroleum hub

By: Nana Karikari, Senior Global Affairs Correspondent

Ghana has taken another step toward expanding its downstream energy infrastructure through a major partnership with an international consortium. The Petroleum Hub Development Corporation (PHDC) signed a preliminary pact on October 19 in Accra with a group led by United Arab Emirates-based Global Sphere.

The deal covers the second phase of a proposed $28 billion (GH¢326.2 billion) refining and petrochemical project in the Jomoro district of the Western Region.

Ghanaian media sources described the instrument variously as a memorandum of understanding and a build-own-operate investment and land development agreement.

The consortium brings together investors and technical partners from Mali and South Korea alongside the UAE group. This multinational backing aims to combine Gulf financial capital with Asian technical expertise and regional West African trade networks.

Plans for the facility include a crude oil refinery capable of processing 300,000 barrels per stream day, two petrochemical plants, storage facilities with a capacity of four million cubic meters, and a multi-berth jetty.

Initial site activities are slated for the first quarter of 2027, provided all preparatory requirements are met. The entire development is targeted for completion within five years.

Speaking at the signing ceremony, Energy and Green Transition Minister John Abdulai Jinapor framed the project as a critical bridge for the country’s energy sector. He emphasized that the initiative would establish a direct link between upstream petroleum production and downstream processing facilities. The project directly supports President John Dramani Mahama’s strategic ambition to expand domestic value addition.

“Today’s signing ceremony is not the culmination of the process; it is the beginning,” Jinapor said.

Despite the scope of the agreement, funding for the megaproject remains unfinalized. Consortium representative Boubacar Belco Bah acknowledged that financing arrangements were still being structured. The strategy includes securing strategic equity participation, long-term debt, and credit enhancement mechanisms.

Bah stressed that execution and delivery would define the eventual impact of the venture.

“Ultimately, our success will be measured not by the agreement we sign today, but by the commitments we honour and the results we achieve together,” Bah said.

Bah noted that the project aims to create extensive opportunities for local employment, technical training, and supplier development. The project framework envisions active participation from Ghanaian enterprises across its supply and value chains.

Petroleum Hub Development Corporation chief executive Toni Aubynn expressed optimism regarding the progress. He stated that the agreement marked a further step toward implementation, noting that the corporation aims to move the project from planning into construction.

The proposed refinery capacity far exceeds Ghana’s domestic crude oil output. The Public Interest and Accountability Committee reported that Ghana produced 37.3 million barrels of crude in 2025. That output translates to roughly 102,000 barrels per day. The figures reflect a six-year continuous decline from a peak of 71.44 million barrels reached in 2019.

Production has shown signs of recovery this year. Jinapor told attendees at African Energy Week in Cape Town that production rose by approximately 30 percent this year. He credited a $2 billion (GH¢23.3 billion) agreement signed in 2025 with Jubilee and TEN field partners that extended their operating licenses to 2040.

Even with this rebound, the planned refinery capacity of 300,000 barrels per stream day is nearly triple Ghana’s average daily crude production. While the output metrics use different operating-day calculations, operating the facility near full capacity will require importing substantial volumes of foreign crude unless domestic production accelerates significantly.

The facility will also enter an increasingly competitive regional market. This competitive landscape poses both market-share challenges and synergy opportunities for West African energy trade. Nigeria’s Dangote refinery has expanded its processing capacity to approximately 700,000 barrels per day. Plans are already underway to boost Dangote’s capacity to 1.4 million barrels per day by 2029.

The latest agreement fits into a broader master plan originally estimated at $60 billion (GH¢699 billion) across three phases. Upon full completion, the entire petroleum hub is designed to feature three refineries with a combined capacity of 900,000 barrels per stream day, five petrochemical plants, and 10 million cubic meters of storage capacity.

Progress on earlier phases has faced structural delays. In June 2024, Ghana signed a separate $12 billion (GH¢139.8 billion) agreement with the TCP-UIC consortium for the first phase, which included another 300,000 barrel-per-day refinery. Former President Nana Akufo-Addo broke ground on that project in August 2024, but substantial construction work has yet to commence.

Land acquisition disputes and local compensation negotiations have presented major obstacles to physical work on the site. In March 2026, the Petroleum Hub Development Corporation confirmed that the government reduced the project’s land requirement from 20,000 acres to roughly 12,300 acres following vocal objections from affected local communities.

Addressing these obstacles remains a priority for the government. At the signing ceremony, Jinapor pledged to coordinate inter-ministerial discussions with the finance and lands ministries, as well as the attorney-general, to resolve outstanding land acquisition, compensation, and financing issues.

The Jomoro petroleum hub represents one of the most ambitious industrial projects in West Africa, offering Ghana a pathway toward energy self-sufficiency and economic diversification. If fully realized, the project could transform the country into a regional refining and export powerhouse.

However, turning this vision into reality will depend on overcoming significant financial, environmental, and logistical hurdles. Success will require securing billions in foreign investment, resolving land disputes equitably, and navigating an increasingly crowded regional market.

Whether the project achieves its full potential or remains a ambitious blueprint will ultimately be decided in the years ahead.