Ghana has entered into a $28 billion investment agreement with an international consortium to develop the second phase of its proposed petroleum hub at Jomoro in the Western Region, but unresolved funding and land compensation matters could delay construction.
The Petroleum Hub Development Corporation (PHDC) signed the deal in the country’s capital, Accra on October 19, 2026, with a group headed by UAE-based Global Sphere and supported by investors and technical experts from South Korea and Mali.
The project, known as Lot Two, aims to increase the country’s capacity for oil refining, petrochemical production and petroleum storage.
Under the proposal, the facility will feature a refinery capable of processing 300,000 barrels per stream day, two petrochemical plants, storage tanks with a combined capacity of four million cubic metres and a jetty with multiple berths.
Implementation is expected to span five years, with preliminary construction scheduled to begin in the first quarter of 2027, provided the necessary conditions are met.
However, the signing does not confirm that the required capital has been fully secured. Reports indicate that the investment group is still arranging funding through equity contributions and long-term borrowing.
PHDC Chief Executive Officer Dr Toni Aubynn has welcomed the agreement as a major milestone towards turning the initiative into reality.
The corporation expects the development to generate jobs, encourage technology transfer and create business opportunities for local contractors, engineers and other Ghanaian enterprises.
Energy and Green Transition Minister Dr John Abdulai Jinapor has pledged to coordinate efforts with the Finance and Lands and Natural Resources ministries, as well as the Attorney-General’s Office, to resolve outstanding challenges.
The discussions are expected to address land acquisition, compensation payments and financial arrangements necessary to facilitate the project’s implementation.
Although the government is targeting the first quarter of 2027 for initial construction, the timeline remains dependent on resolving these concerns.
The agreement alone does not establish that financing has reached completion or that all land-related obligations have been fulfilled.
Ghana’s petroleum hub initiative dates back several years. In August 2024, former President of the Republic of Ghana, His Excellency Nana Akufo-Addo led a groundbreaking ceremony for an earlier phase, which was associated with a proposed $12 billion investment and a refinery designed to process 300,000 barrels daily.
Reuters reported that the broader initiative had attracted concerns about its commercial feasibility, alongside resistance from some local residents over land acquisition.
The earlier development and the newly signed Lot Two agreement represent separate stages of the wider programme. Consequently, the latest deal does not confirm completion of the previous phase or guarantee funding for the entire undertaking.
Meanwhile, developments in the regional energy industry could influence the commercial prospects of Ghana’s proposed complex.
Nigeria’s Dangote refinery began commercial operations in 2024, introducing a significant source of locally processed petroleum products into a market that has traditionally relied heavily on imported fuel.
Business Insider Africa has highlighted the facility’s contribution to expanding Africa’s refining capacity.
Its emergence presents a competitive challenge for Ghana, raising questions about the future market demand, profitability and long-term viability of the proposed Jomoro petroleum and petrochemical centre.
By: Magdalene Agyeiwaa Sarpong