Business News of 2013-12-21

VRA to save 500 million dollars - Dr Sipa Yankey

The Volta River Authority (VRA) will save over 500 million dollars a year when the Atuabo gas processing plant starts supplying lean gas to the authority for electricity generation, Dr George Sipa Yankey has said.

Dr Sipa Yankey, Chief Executive Officer (CEO) of the Ghana Gas Company (GGC) explained that the VRA was currently spending three million dollars per day using fuel to generate electricity.

However, he said, when the Atuabo gas processing plant came on stream next year, the VRA would spend only 0.5 million a day using gas for power generation.

He, therefore, said the VRA would save 45 million dollars a month and over 500 million dollars a year since it was much cheaper generating electricity with gas than fuel.

Dr Sipa Yankey said this when the members of the Standing Committee of the Western Regional House of Chiefs visited the Atuabo gas project site to acquaint themselves with progress of work on Thursday.

He estimated completion of work at 79 percent and assured the chiefs that the gas processing plant would start receiving raw gas from the Jubilee Oil Fields for test-run and eventual commissioning in April next year.

Briefing the chiefs on progress of work, Mr Emmanuel Kobina Moses, Construction Manager of the GGC, said all the vital equipment and facilities had been successfully installed.

He said both onshore and offshore pipelines from the Jubilee Oilfields through Atuabo to the metering station at Aboadze had been laid.

He said the vital gas processing components had been installed including the Central Control Room, Water Treatment plant, Reception Facility Area, LPG Recovery Area, Flare KO drum, LPG tanks and generators.

Mr Moses indicated that a gas distribution station had also been built at Essiama that would supply gas to Prestea, Bonyire and the northern sector of the country.

Osagyefo Dr Kwamina Enimil VI, Paramount Chief of Wassa Fiase and President of the Western Regional House of Chiefs, commended the management of the GGC for judicious use of resources for execution of the project.

He said there had been tremendous improvement since the Committee visited the project site last year and pledged the co-operation of the chiefs to ensure timely completion.

Members of the Standing Committee that visited the gas project site included Awulae Attibrukusu III, Paramount Chief of Lower Axim, Nana Kwesi Agyemang IX, Paramount Chief of Lower Dixcove, Awulae Agyefi Kwame II, Paramount Chief of Nsein and Okoegyeaman Kwaku Gyamfra III, Paramount Chief of Chirano Traditional Area.