President Akufo-Addo has commissioned a Bitumen processing facility, marking a significant intervention to lower road construction costs in Ghana.
The facility, with a commercial production capacity of 240 tonnes per day—more than 87,000 tonnes annually—of polymer-modified bitumen (PMB), is expected to reduce Ghana’s $11.8 billion average annual bitumen import bill.
Ghana’s estimated annual bitumen demand stands at 192,000 tonnes.
The plant, built in partnership with Société Multinationale de Bitumes (SMB) of Côte d’Ivoire, also features a 7,500-tonne storage facility.
It has a three-kilometre pipeline connecting the plant to the oil jetty at Tema Port, allowing for the efficient receipt of base bitumen from supply vessels.
The fully automated plant uses above-ground internal pipelines, unlike the traditional practice of laying pipelines on the ground.
The facility includes two storage tanks, with capacities of 2,000 metric tons for AC 10 bitumen and 4,000 metric tons for AC 20 bitumen, both of which are essential for processing into emulsion and PMB.
The company’s collaboration with SMB ensures a reliable supply of base raw materials, which would have been challenging to procure from outside West Africa.
Diversification and Economic Impact
The project aligns with the company’s broader strategy of diversifying from an oil marketing company to ventures in mining, ocean bunkering, and other sectors.
Speaking at the commissioning ceremony of the African Bitumen Terminal (a GOIL/SMB Joint Venture) in Tema, President Akufo-Addo described the $40 million project as a testament to the power of pooling resources, expertise, and determination within the ECOWAS community.
The President noted that the plant opens new opportunities for Ghana and Côte d’Ivoire to become exporters of bitumen to other West African countries and beyond.
“This facility has come at the right time. My government is undertaking the largest road network expansion ever seen in this country, with the construction of some 12,000 kilometres of road since 2017. I strongly believe that the contribution of the GOIL/SMB Bitumen plant will fully complement the government’s efforts in road construction,” he stated.
He further emphasized the broader implications of the bitumen plant, noting that it will not only meet the demands of Ghana’s road construction sector but also create significant opportunities for exports, job creation, and enhanced technological expertise.
“The economic and social benefits of this facility will ripple across our economy,” he added.
Strengthening diplomatic Ties
Robert Beugré Mambé, Prime Minister of the Republic of Côte d’Ivoire, representing President Alassane Ouattara, hailed the Bitumen Terminal as a milestone in the diplomatic and bilateral relations between Ghana and Côte d’Ivoire. He expressed President Ouattara’s excitement about the project and its potential for success.
Call to halt bitumen imports
Kwame Osei-Prempeh, Group Chief Executive Officer and Managing Director of GOIL PLC, emphasized that with the commissioning of this facility, bitumen—crucial for road construction—would now be readily available within the country, supporting the government’s massive road construction agenda. He urged the government to halt the importation of bitumen through both approved and unapproved routes.
Towards zero-carbon emissions
Herbert Krappa, Minister of State at the Energy Ministry, remarked that the bitumen plant’s impact will extend beyond the road sector, benefiting the entire Ghanaian economy.
He urged the plant’s managers to target zero carbon emissions throughout its operations.
“Being responsible in our carbon emissions is no longer an option. We are witnessing the effects of a fast-warming globe, and we must act decisively.
“This plant must be a zero-carbon emission model for others to follow and contribute directly to Ghana’s goal of achieving net-zero emissions,” Krappa said.
He further encouraged the exploration of renewable energy sources, the use of compressed natural gas for trucks, and the development of carbon sinks for hard-to-abate areas.
African bitumen terminal
The African Bitumen Terminal and production plant is a partnership project between GOIL PLC and Société Multinationale de Bitumes (SMB), Côte d’Ivoire.