John Mahama hails $28bn agreement for Petroleum Hub Phase 2

President John Mahama has commended the Petroleum Hub Development Corporation (PHDC) for securing a US$28 billion agreement with Global Sphere for the second phase of the Petroleum Hub project. Speaking at the 15th Local Content Conference and Exhibition in Takoradi, the President highlighted the deal as a major milestone in Ghana's quest to become a regional energy hub. The development aims to integrate the country's upstream oil production with domestic refining and petrochemical manufacturing to maximize national value.

The second phase of the project is set to include a refinery, petrochemical plants, and a multi-berth jetty, alongside extensive storage infrastructure. Construction is projected to begin in early 2027, pending the fulfillment of specific agreement conditions. This massive investment is designed to process domestic crude oil—with current upstream production exceeding 120,000 barrels per day—into refined products for the West African sub-region, reducing Ghana's reliance on imported fuels.

To ensure the long-term success of the initiative, President Mahama has directed the Petroleum Commission and other upstream agencies to collaborate closely with the PHDC. A key focus of this directive is securing a reliable and consistent supply of feedstock to power the hub's facilities. By fostering better coordination between upstream producers and downstream processors, the government intends to create a seamless value chain that supports industrialization and economic stability.

The President further emphasized that the Petroleum Hub is a cornerstone of his administration's economic transformation strategy. He underscored the importance of local content, asserting that the project must provide substantial benefits for Ghanaian businesses and professionals. As the project advances toward its 2027 start date, the partnership with the international consortium is expected to drive significant job creation and technical knowledge transfer within the energy sector.