Ghana has signed a memorandum of understanding for a proposed $28 billion expansion of its Petroleum Hub, including a 300,000-barrel-per-day refinery, as the country seeks to strengthen its position in West Africa’s petroleum processing and distribution market.
The agreement was signed on October 19, 2026, in Accra by the Petroleum Hub Development Corporation (PHDC) and a consortium led by UAE-based Global Sphere, involving investors and technical partners from South Korea and Mali.
The proposed development, known as Lot Two, will also feature two petrochemical plants, storage facilities with a combined capacity of four million cubic metres and a multi-berth jetty to support petroleum imports, exports and distribution.
However, Ghana’s Energy Minister, John Abdulai Jinapor, acknowledged that financing, land acquisition and compensation issues must be resolved before the development can advance.
According to the report, the minister said the outstanding issues remained critical to moving the project forward, with the government expected to involve the finance and lands ministries and the Attorney-General’s Office in resolving the challenges.
PHDC Chief Executive Toni Aubynn said development of the hub was expected to take five years, with initial construction activity in Jomoro targeted for the first quarter of 2027, subject to the completion of preparatory requirements.
Aubynn linked the project to President John Dramani Mahama’s industrialisation plans and 24-hour economy agenda, which aims to expand economic activity and create opportunities across multiple sectors.
The proposed investment could generate business for construction firms, engineers, logistics operators and suppliers while expanding Ghana’s petroleum processing and storage capacity. However, these benefits will depend on the consortium translating the agreement into funded and operational infrastructure.
Financing and Land Issues Remain key Hurdles
Despite the scale of the proposed investment, questions remain about how the $28 billion project will be financed.
The published announcement does not specify the proposed debt and equity mix, the ownership stakes of the consortium partners or whether lenders have committed capital.
Land acquisition and compensation for affected communities are also outstanding issues. Jinapor has indicated that the government intends to work across relevant ministries and the Attorney-General’s Office to address the obstacles.
The project’s commercial viability will depend on securing the necessary funding, obtaining land, establishing reliable crude oil supplies and ensuring that the refinery can produce petroleum products at competitive costs.
Ghana’s Petroleum Ambitions
Ghana’s petroleum hub ambitions predate the latest agreement. In August 2024, former President Nana Akufo-Addo presided over the groundbreaking for a separate first phase valued at $12 billion, which also included plans for a 300,000-barrel-per-day refinery.
That earlier development faced questions about commercial viability and opposition from some residents over its land requirements, according to Reuters reporting at the time.
The proposed Ghanaian refinery could strengthen the country’s ability to process crude locally and supply neighbouring markets, positioning the country as a potential regional centre for refining, petrochemicals, storage and petroleum trading.
