Mr Boakye Agyarko, the Energy Minister, has said over USD$50 billion investment funds would be needed to build a relevant petroleum infrastructure such as an oil refinery, tank farms, pipelines, marine facilities and other allied facilities to make Ghana a petroleum hub.
He said the estimated amount was reached after the assessment made by a petroleum task force inaugurated by the government last year to develop a petroleum infrastructure master plan and road map towards the realisation of the vision.
He said the funds was supposed to come from public and private investments of which the government was to raise 10 per cent to support the construction of road networks, electricity and water facilities, Mr Agyarko made this known at the second edition of the Ghana International Petroleum Conference in Accra held on the theme: ‘‘Realising the vision of a petroleum hub’’.
The four-day event was under the auspices of the Energy Ministry and Ghana Chamber of Bulk Oil Distributors, in collaboration with the National Petroleum Authority and the Association of Oil Marketing Companies. It brought together key stakeholders in the petroleum downstream sector, including policy-makers, regulators and oil service providers, to deliberate on policies and trends in the sector, as well as discuss pertinent issues affecting the industry in the bid to guide decision-making.
The participants are expected to come out with some recommendations to help resolve challenges in the petroleum downstream and chart the way forward. Mr Agyarko said the theme for the conference was in tandem with the government’s vision, which was enshrined in the new National Energy Policy.
He, therefore, urged the petroleum service providers to upgrade their skills and business capacity to partner with the Foreign Direct Investors to ensure a fair balance and significant value retention of benefits in the country. ‘‘Today, financing for new refineries has become difficult to obtain, especially as some existing refineries across the world are being shut down due to low margins.
He said henceforth, new entrants into the downstream petroleum industry, particularly oil marketing companies that supply petroleum products to the market and other industries, including mining, extraction and aviation industries, were required to be Ghanaian firms that owned a minimum of 51 per cent equity, while existing operators with foreign participation have up to 10 years to meet the requirement.
The Energy Minister noted that the International Maritime Organisation had lowered the sulphur content cap of petroleum products from 3.5 to 0.1 per cent, which required that the existing petroleum infrastructure were supposed to upgrade their facilities, in order to achieve the new specification and make the products safer.
Mr Agyarko said the Ministry had prepared a draft Fuel Quality Policy, which provides guidance on acceptable sulphur specifications and would go through stakeholders’ consultations for their inputs before going to the Cabinet for consideration and approval.