DEVELOPMENT OF A PETROLEUM HUB IN GHANA · To make Ghana the hub for quality refined petroleum products for the West African sub-region 5/16/2018 Ministry of Energy - Petroleum Hub

5/16/2018 1

DEVELOPMENT OF A PETROLEUM HUB IN GHANA

Ministry of Energy - Petroleum Hub Task Force

MINISTRY OF ENERGY

Creating Prosperity & Equal Opportunities for all

Development of strategic anchor initiatives as new pillars of growth in the Ghanaian economy, including the establishment of petrochemical industries

5/16/2018 Ministry of Energy - Petroleum Hub Task Force 2

Expand the national crude oil refining capacity.

Expected Contribution

Secure increased private sector investment in partnership with the public sector for the expansion of infrastructure for the supply of petroleum products.

Expand petroleum product storage capacity, and extend petroleum products bulk distribution infrastructure throughout the country.

Strategies

70% Increase in GDP

between 2018-

2038

780,000 Jobs

Export finished petroleum products to the West African market and the rest of the World

8% Increase in Annual

Growth

$1.56bn Estimated Export Tax

by 2030

Creating a Petroleum Hub in Ghana

To make Ghana the hub for quality refined petroleum products for the West African sub-region


Nigeria

19.7m MT

Senegal

2.25m MT

Ivory Coast

1.7m

MT

Togo

0.4m

MT

Others

2.65m

MT

Sub-Regional Demand

Sub-Regional

Total

30mMT

Ghana3.3m MT

Why there is the need for a hub

Deficit in refined products in the World


70m MT m MT


Deficit in refined products in Africa



Deficit in feedstock for petrochemicals


An Integrated Petroleum Complex that will house Storage Facility, Oil Refineries, Petrochemical Plants, and LNG Regasification Facility


7

Refineries

Four (4) new refineries

Each with a capacity of 150,000bpd

Land size of 750acres required for each refinery

Cost of each refinery estimated at US$ 5.4billion

Expected completion in 2030


Total Capacity 600,000

bpsd

Storage


Initial 1,000,000m3 capacity storage depot in year 1

Increased to 2,000,000m3 by year 3

Accommodate 50 percent of the West African market by

Ultimate 10,000,000m3 by 2030

Storage Tanks for Crude, LPG, LNG, Gasoline, Gasoil, Kerosene, ATK, etc.

Total cost of the initial 1,000,000m3 capacity storage depot 1,000,000m3 is estimated at US $400million.

Total land area of 400acres is required for this tank farm

Total Capacity

10,000,000m3

Port Facilities - Jetties


Two (2) or more jetties with capacities to handle two vessels each at a time and with the capacity to both load and discharge refined petroleum products.

The jetties should be able to handle VLCCs and ULCCs

The jetties should have capacities to load and discharge white products as well as LPG and LNG

The unit cost for a jetty is estimated at US$200million

At least 4 discharge/loading points

Petrochemical Plants


Two (2) petrochemical plants

Each with processing capacities of ……

Capability to take the residues of the four (4) refineries Import residue as may be necessary to produce fertilizer and other chemical products.

Will receive their feedstock of 22,500bpd from each of the four (4) planned refineries

Total of 90,000bpd of aromatics and unsaturated will be available as feedstock for the petrochemical plants.

Each to produce about 4.72 million m3 of petrochemicals annually

Ability to process

90,000 bpsdworth of feedstock

Petrochemical Plants Contd.


Cost estimated of each petrochemical plant is about USD 3.0billion dollars

Total land space required for a petrochemical plant is 500 acres and 1000 acres for the two plants envisaged

Construction of the first petrochemical plant must commence with the development of the first 2 refineries in year 4.

The second petrochemical plant will be constructed in year 7 with the development of the second batch of two refineries.

Ability to process

90,000 bpsdworth of feedstock

Strategic location of Ghana

• Access to existing major international shipping lanes (Middle East –Singapore –China)

• Water depth of 24m enables VLCCs1and ULCCs2

• Safe and sheltered harbour

• Low negative socioeconomic impact

• Availability of sufficient development land

• A single candidate plot in excess of 5,000 acres

• Very few Environmentally Sensitive Areas (ESAs) which are easily preserved

• Middle of long distance to nearest hub

Strategic Location


Environmental Considerations


Timelines


Development of Petroleum Hub concept

Cabinet Approval of Petroleum Hub concept

Commissioning of Preparatory Studies / Work

Review of other countries' experiences in hub development

Review current policies and plans in context of the hub

Review of the legal and regulatory regime

Establishment of Petroleum Hub Development Authority/Development

Company

Site identification, acquisition

Preparation of Spatial plan

Pre-feasibility

Conduct of environmental assessment

(Strategic Environmental Assessment - SEA)

Development Criteria for Selection of Investors

Investment promotion

Bidding, evaluation and contracting /selection

Develop conceptual designs

Construction of physical infrastructure

-basic infrastructure

Electricity, Water, Roads, Telephone, Internet and other public amenities

-key infrastructure

Power plant, Storage infrastructure and Port facilities

Commencement of trading activities

First batch of two (2) refineries and petrochemical plant

Second batch of two (2) refineries and petrochemical plant

-ancillary infrastructure

2017 - 2018 2018 - 2020 2019 - 2030

Phase 1

Phase 2

Phase 3

Communication


Strategy

• Ensure that there is communication leadership and that the communication process is well coordinated, and responds appropriately to the information needs of all stakeholders

• Provide a mechanism for timely, accurate, clear, objective and complete information on the development of the hub

• Identify and address the information gap and needs of stakeholders in a manner that ensures continuous improvement

• Develop an implementation mechanism for the strategy that defines actors’ roles and responsibilities and harnesses communication synergies of all the key players in the communication process.

• Establish the communication tools and channels that suit the various stages of development

Total amount needed to carry out the petroleum Hub project is $30.87 billion.

Investment requirements


Role of Government

Enabling Policy and Regulations

Development of public amenities

Dedicated agency to coordinate, facilitate and oversee implementation

Investor pitching and roadshows

Readily available incentives

Private Investors

This project will increase our GDP by 70% by the year 2021, with an average growth of 18% for the four years of construction.

Magnitude of Ghana’s Petroleum Hub

Capacity of Oil Storage for Trading

10,000,000m3

Port Facilities

4 discharge/ loading points

Capacity of Petrochemical

Product

90,000 bpsd

Capacity of Oil refinery

600,000bpsd

Total Potential• 50 billion of investment• 20,000 acres of industrial area developed• Expansion of Support Services Industry


Magnitude of Ghana’s Petroleum Hub


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CONCLUSION

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The sub-sector has been driven by previous policies most recent of which was the Ghana Energy Policy 2010.

The new policy is required to:

• Cover growing activities in the Petroleum Downstream industry,

• Provide direction for expanding and improving existing infrastructure, and

• Drive our quest to make Ghana the hub for quality refined petroleum products in the West African sub-region

The new policy will help address:

• Policy gaps identified in the existing document,

• Mandate overlaps in the regulation of the Downstream industry, and

• Identify and recommend the passage of new legislation and/or the amendment of existing legislation to facilitate the activities of the sector

At the end of implementation of this policy, it is expected that Ghana will become the hub for quality refined petroleum products in the West African sub-region.

Petroleum Downstream Policy

Ministry of Energy

5/16/2018 21Petroleum Downstream Policy

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DEVELOPMENT OF A PETROLEUM HUB IN GHANA · To make Ghana the hub for quality refined petroleum products for the West African sub-region 5/16/2018 Ministry of Energy - Petroleum Hub