Editorial: Gov’t’s comprehensive strategy to expand energy infrastructure

A 20,000-acre site has been secured in Jomoro, Western Region. This land will be used for new refinery construction.

Each of the three refineries will process at least 300,000 barrels daily. This is a significant increase from Ghana’s current refining capacity. The existing refineries have faced many issues.

The state-owned Tema Oil Refinery (TOR) can process 45,000 barrels daily. However, it struggles with operational and financial challenges. These include maintenance problems and financial mismanagement.

The Sentuo Refinery has similar capacity issues as TOR. The new plants aim to support ongoing exploration projects. They also align with Ghana’s goal of becoming a regional energy hub.

To ensure smooth execution, the Petroleum Hub Development Corporation has been established. This organization will work with regulatory bodies to expedite permits for investors.

The petroleum hub was commissioned under the previous administration. It has faced controversy recently over compensation payments to landowners. Chiefs in the area raised concerns about over GH¢1.2 billion owed to them.

The government assures that these payments will be made promptly. Additionally, there are plans to expand gas processing capacity for rising industrial demand. This includes sectors like power generation and cement production.

A decision has been made to build a new gas processing plant. It will have a capacity of 150 million standard cubic feet per day (mscfd). This is in anticipation of increased gas volumes from local fields.

According to the ministry, this infrastructure will boost domestic value addition. It aims to reduce reliance on imported refined products and create jobs in Ghana.