GNPC working to reposition Ghana as energy hub
The Ghana National Petroleum Corporation (GNPC) is working to reposition Ghana as the energy hub in the sub-region by ensuring that the country is energy independent and self-sufficient to meet demand.
“The merits of energy independence and self-sufficiency to Ghana’s economy cannot be over-emphasised because it holds the key to positioning the country as the power hub of the West Africa sub-region and, most importantly, boost the industrialisation drive of the government,” the Chief Executive Officer of the GNPC, Dr K.K. Sarpong said this in an interview with the Graphic Business in Accra over the weeken.
Subsequently, the GNPC has confirmed that it is in talks with West Africa Gas BVI Limited (WAGL) to modify the gas sale agreement (GSA) which the WAGL signed with the government in 2015 as part of its drive to get the best for the country and move the energy agenda forward.
The renegotiated agreement with the WAGL is expected to be concluded by the end of the month to pave way for the commencement of the multi-million gas project in the Western Region by the first quarter of this year.
He said on completion, the project was expected to significantly increase energy security in Ghana, “providing the country with approximately 657,360,000 million British thermal units (mmbtu) of competitively priced gas over the lifetime of the project in a cost-effective and environmentally responsible manner”.
A BTU is a measure of the energy content in fuel used in power, steam generation, heating and air conditioning industries.
The renegotiated agreement is to help save the country hundreds of millions of dollars from the contract meant, among other things, to transform the country’s fledging oil and gas industry.
The move, which is seen by industry experts as a positive step by the GNPC towards ensuring value for money in favour of the government and the people of Ghana, is aimed at re-negotiating some of the key terms of the agreement.
It comes at a time when the government is taking some pragmatic steps towards ensuring that the country gets high value for money from contracts it has entered into with companies and foreign investors wishing to do business in the country.
During his meeting with the French President last year, President Nana Addo Dankwa Akufo-Addo said the government was working hard to make Ghana a country without aid but which formed partnerships that would ensure a win-win situation for both the government and investors.
It is in this light that the GNPC, which oversees Ghana’s oil and gas wealth, is keen on ensuring that the right moves are made to lead the way in that direction in the interest of the state and at the same time ensure that foreign investors do not lose confidence in the economy.
The WAGL is a joint venture company between the Nigerian National Petroleum Corporation (NNPC) and a subsidiary of Sahara Energy, Ocean Bed Trading Limited, an established oil and gas trading company.
Under the terms of the agreement, the WAGL will supply 180mmscf/day of liquefied natural gas (LNG) to existing and new power plants along the Western Corridor for 10 years.
The project will provide a cost-efficient source of energy and ensure less reliance on light crude oil for thermal power generation.
The proposed technical configuration of the project comprises a Floating, Storage and Regasification Unit (FSRU), dredging an already identified location within the Takoradi Harbour to ensure efficient mooring, a minimally manned jetty and a state-of-the-art pipeline network connecting to the Takoradi metering station.
The project promises an improved upgrade of the Takoradi Harbour.
The GNPC and the WAGL have been in negotiations since October 2017 and target to conclude the talks in January this year. They anticipate that the project will commence in the first quarter of 2018.
The WAGL’s timeline for completion is 18 months, with first gas targeted for the third quarter of 2019.