Parliament recently passed the Petroleum Hub Development Corporation Act, 2020 (Act 1053) to promote and develop a Petroleum and Petrochemicals Hub (the “Hub”).
Specifically, the Act creates the Petroleum Hub Development Corporation (the “Corporation”) to provide an institutional framework for promoting, developing and managing the Hub. To achieve its object, the Act allows the Corporation to facilitate the creation of industrial parks to promote the manufacture of downstream petrochemical and chemical products, to enter in a joint venture with a company operating within the Hub, and to set up a mechanism to ensure the requisite transfer of skills and knowledge to Ghanaians engaged in activities within the Hub, among other things.
As part of its functions, the Corporation is required to plan and implement strategies for the development of the Hub and to undertake preparatory works for its promotion. In addition, the Corporation will assist companies that seek to develop and operate facilities in or with the Hub to acquire all relevant licences and permits from the regulatory bodies, to facilitate the availability of an industry-ready workforce to drive the growth of the Hub, and to ensure participation of Ghanaians in technical and managerial functions of the companies operating within the Hub.
The Hub and the Act are expected to attract investments of about USD 50 billion by the end of 2030.and to accelerate the growth of Ghana’s petroleum downstream sub-sector and make it a major player in the economy.