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Securing fuel supplies in Ghana

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World Pipelines,

A multi million dollar project implementation agreement between Ghana Gas and Yantai Jereh Oilfield Services Group Co. Ltd, has been signed, for an onshore natural transmission pipeline (NGTP). The entire project, including the implementation phase, is estimated to cost US$500 million but would allow Ghana to be gas sufficient by 4Q18, as a result.

The CEO of Ghana Gas, George Sipa-Adjah Yankey, signed on behalf of Ghana Gas, while Sun Weijie, Founder, Chairman and CEO of Yantai Jereh, signed for his company at a ceremony in Accra.

The pipeline will be fed gas from the Jubilee, TEN and ENI projects, located offshore the Western Region. George Adjah Sipah-Yankey told the Daily Graphic that the first phase of the project, involving engineering work, is almost complete. He predicted that the construction phase would take approximately 24 months and that this would begin in the next six months. First gas from the project is expected to flow in 2Q18.

Ghana has struggled to get enough gas to power its power generating plants since 2012. This has, in turn, resulted in intermittent supply of power to homes and businesses.

The project

Ghana has West Africa’s second largest economy. It is hoping to secure regular fuel supplies for power plants after blackouts of as long as 24 hours weighed on growth, which last year fell to the lowest in almost two decades.

The 24 in. 290 km NGTP will run from Aboadze, in the Western region, to Tema, in the Greater Accra region, passing through four regions in total.

It is expected to have a maximum capacity of 380 million ft3/d of gas in phase one and a maximum capacity of up to 550 million ft3/d in phase two.

The onshore pipeline is to be constructed on a build, operate and transfer model within 24 months.

Ghana Gas CEO, Yankey, said: “the pipeline will provide stable and sustainable capacity for the evacuation of Ghana’s natural gas flows from the Tano Basin.”

He added that “upon completion of the pipeline, Ghana Gas would have constructed a national gas infrastructure that spans about 80% of Ghana’s coastal frontier.”

Edited from various sources by Anna Nicklin

Sources: Graphic News, Bloomberg, Graphic News

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