PHDC signs $28bn agreement for Jomoro petroleum hub project

The Petroleum Hub Development Corporation (PHDC) has signed a $28 billion Build-Own-Operate agreement with an international consortium to develop the second phase of Ghana’s Petroleum and Petrochemicals Hub. The deal, finalized in Accra on October 19, 2026, marks a major step toward establishing a world-class energy corridor in Jomoro, located in the Western Region. This phase of the project, known as Lot 2, centers on the construction of a refinery with a capacity of 300,000 barrels per stream day, alongside various petrochemical plants and storage infrastructure.

The investment consortium is led by Global Sphere, a firm based in the United Arab Emirates, and includes partners from South Korea and Mali. During the signing ceremony, PHDC Chief Executive Officer Dr. Toni Aubynn and Boubacar Belco Bah, representing the investor group, formalized the partnership. Dr. Aubynn noted that the project aligns with President John Mahama’s industrialization agenda, which seeks to transform Ghana into a regional hub for refined petroleum products and value-added petrochemicals.

Minister of Energy and Green Transition, Dr. John Abdulai Jinapor, emphasized that the project is critical for ensuring national energy security and creating thousands of jobs for Ghanaians. He explained that by refining oil locally and producing petrochemicals, the country will reduce its reliance on imports and capture more value from its natural resources. The minister highlighted the government’s commitment to providing the necessary regulatory and institutional support to ensure the consortium can deliver on its technical and financial obligations.

Despite the signing, the project faces several logistical and administrative challenges that the government is now moving to address. Minister Jinapor has initiated inter-ministerial engagements with the Ministry of Finance and the Ministry of Lands and Natural Resources to resolve outstanding issues regarding land acquisition, compensation for local residents, and final financing structures. He stressed the need for decisive action from all state institutions to prevent delays and facilitate the smooth commencement of the project.

Construction is slated to begin in early 2027, with the facilities expected to significantly boost the local economy in Jomoro and the broader Western Region. Local leaders and stakeholders have expressed optimism about the project's potential to provide infrastructure development and employment opportunities. As the PHDC moves forward with this $28 billion investment, the focus remains on responsible project execution and maintaining strong collaboration with host communities to ensure long-term sustainability.