Parliament approves the oil center bill | Economy

Parliament passed the 2020 Petroleum Center Development Corporation bill. The bill seeks to establish the Petroleum Center Development Corporation to promote and develop an oil and petrochemicals hub in the country.

The project is part of the government’s strategic development initiatives to promote socio-economic growth and aims to strategically position Ghana as a hub for the petroleum industry in the West African sub-region and the world at large.

It will be designated as a free zone that will be located within the Bonyere Traditional Area in the Jomoro District in the Western Region.

Memorandum
A memorandum accompanying the bills said that the oil and petrochemicals center would be dedicated to supplying oil and petrochemicals to meet the demands of the domestic market and the West African subregional market.

“This project will see an increase in the presence of major international oil trading and storage companies, while fostering public-private partnerships and joint ventures between local companies and international companies.

“This will invariably result in knowledge transfer and wealth creation. The project implies the establishment of an important infrastructure for the refining and processing of petrochemicals, in addition to the unloading, storage, distribution, transportation and commercialization of petroleum products ”, he said.

The memorandum, signed by the Minister of Energy, Mr. John-Peter Amewu, said that the factors that had driven the initiative were the country’s central location in the West African sub-region, political and macroeconomic stability, access to West Africa . subregional market and proximity to international maritime routes.

Infrastructure

To achieve this objective, he expressed the need to develop infrastructure such as refineries, port terminal facilities, storage facilities, as well as petrochemical and liquefied natural gas terminals with a network of pipelines.

“This project requires that a total land of approximately 20,000 acres be provided with pertinent amenities, including a network of rail, road and air transportation.

“Other key infrastructure requirements include the construction of docks, storage tanks, refineries, a liquefied natural gas facility, a central transmission infrastructure, power plants, petrochemical plants and a lubricant bending plant along with transmission infrastructure and storage for landlocked countries. ” He said.

The project, he added, would also require the construction of infrastructure to provide support services for offshore activities, including nautical services, repair and maintenance facilities, exploration and drilling equipment service, as well as off-site dry dock and yard facilities. dock for ship repair, engineering and dismantling.

In addition, he said that the auxiliary infrastructure requirements for the center development included a water treatment facility, a waste management center, a laboratory and a light to medium industrial area.

“This is in addition to the provision of social services that include health and educational facilities, a security and emergency response facility, residential and commercial facilities, among others.

“The estimated cost to develop the oil and petrochemical center is $ 60 billion. Of this amount, 90 percent of the cost is expected to be borne by private sector investors, while the remaining 10 percent will be borne by the government.

“The government’s 10 percent investment contribution is expected to be money allocated from the budget programs of the ministries, departments and agencies during the period for the development of the center,” he said.