Towards gas self-sufficiency

In the next decade, government estimates suggest, thermal generation will constitute 80% of the country’s source of power, and gas will be a critical feed stock. 
 

Government has, therefore, set itself the task of ensuring that the country’s own gas resources are efficiently exploited, even as we rely on foreign gas via the West African Gas Pipeline as well as Liquefied Natural Gas projects that are in the works.  

Speaking at the Meet-The-Press Series in October, 2016, Petroleum Minister, Emmanuel Armah Kofi Buah, described the gas sector as being arguably the “major game changer” for Ghana’s economy.

“We are therefore systematically developing additional gas fields and ramping up volumes in existing fields…We estimate that with the various projects lined up, gas volumes from indigenous fields will reach 350 mmscfd by 2019, enough to generate over 2000MW of power,” he said.

“Additional volumes will in the long term provide the opportunity for Ghana to realise its vision to utilize gas for other industrial uses beyond power generation such as fertilizer and petrochemicals.”

The Sankofa project 

Government has, thus, demonstrated its commitment to ensuring timely delivery of a number of projects, including the Sankofa Gye-Nyame (OCTP) gas project, which is a major gas project. 

In January 2015, Government signed an agreement to begin work on the Sankofa Gye Nyame field. On 30th April, 2016, H.E the President cut sod for the construction of the Onshore Receiving Facility (ORF) at Sanzule – Ellembelle in the Western Region to receive lean gas from the Field. 

On September 22, 2016, all parties, including the World Bank, ENI, GNPC signed the Indemnity Agreements providing the $700 million security package to back the over $7 billion investment project.

This signing ceremony signalled an achievement of one of the major milestones and conditions precedent for the financing and delivery of the project. 

Government considers this guarantee by the World Bank as significant for a number of reasons: It is the largest Partial Risk Guarantee by the World Bank. It is supporting the largest ever foreign investment in Ghana. In this project, GNPC holds 20% stake in both the oil and gas. It is a game changer in Ghana’s gas sector. And the project demonstrates the Government’s commitment to forging the right partnerships to achieve energy security for the people of Ghana. 

Gas Master Plan

The government of Ghana recognises that one of the daunting challenges of the gas sector is developing the appropriate infrastructure for cost effective and sustained gas delivery to consumers.

The Petroleum Ministry is, thus, taking steps to address infrastructure gaps and delivery requirements in a gas strategy outlined comprehensively in what is termed the “Gas Master Plan” which has been approved by Cabinet. 

The Ministry has begun work on the development of a Gas Policy and a Gas Act that will provide transparent regulatory framework for the gas industry. It will address infrastructure requirements; funding, institutional mandates for gas sector agencies and provide a revised gas pricing policy reflecting the country’s developmental priorities.

In the words of the sector minister: “Ghana has entered the gas era with clear potential for our economic transformation.”

Ghana Gas Infrastructure Project

The Atuabo Gas processing plant, which has a capacity of 150mmscf/d, is currently supplying about 80 mmscfd of gas for power generation. The plant is also producing about 500metric tonnes of Liquefied Petroleum Gas (LPG) per day, which is about fifty percent (50%) of national demand. 

In addition to the main project, several ancillary projects within the Gas corridor are being undertaken. These include the construction of asphalt road network, including construction of bridges for the safe evacuation of the LPG from the gas processing plant. 

In anticipation of Sankofa gas which will be available from the 2nd Quarter of 2018, Ghana Gas has commenced procurement and installation of a Mainline Compressor Station. 

Furthermore, to minimise interruptions to gas supply, Ghana Gas is installing a backup overhead compressor. 

Evacuation of Gas from West to East

To ensure bidirectional transportation of gas between the two critical load centres of Takoradi and Tema, and guarantee flexibility and security of supply, Ghana Gas has completed the extension of its pipeline to the battery limit of the West Africa Gas Pipeline Company’s (WAPCo) Regulatory & Metering Station at Aboadze and it is awaiting WAPCo to interconnect.

In the long term, a 290km onshore pipeline to ensure gas supply reliability and downstream infrastructure expandability is planned.

“The petroleum sector is awash with good news because it has ushered Ghana into a new gas era that will guarantee our energy security, increase oil production, empower Ghanaians to be in the forefront of the industry through local content and local participation, and a liberalized downstream sector with strong private sector participation where competition and better customer service is making Ghana the preferred destination for doing business in the sub-region,” Kofi Buah said. 

Prepared by the Communications Department of the Petroleum Ministry