Business News of 2014-08-12

Tests on Ghana Gas pipelines to be conducted before production

The Jubilee Partners have agreed with the Ghana Gas Processing Plant to test pipelines that will serve as conduit for the reception of gas from the Jubilee fields before a final greenlight for production is issued, an executive member of the Jubilee Partners has said.

“Both of us have agreed on it and it is necessary for them, it is necessary for us because of what hydrocarbons can do if they are not kept in pipes at the right pressure.”

The Processing Plant, which is almost complete, is scheduled to begin the production of gas at the end of this month.

It is expected to meet 75 per cent of the gas demands of the country.

However, in an interview with TV3’s Sandra Amarquaye on Monday, August 11, Charles Darku, the Chief Executive Officer of Tullow Oil Ghana Limited, observed that "if there are issues that need to be addressed, they will be addressed.”

The Plant is scheduled to supply the Volta River Authority (VRA) with 120 million standard cubic meter of gas daily, which will save the country $1 billion each year for the next 25 years, according to engineers.

Mr Darku hinted that without proper audit by an independent body of the facilities at Atuabo, the Jubilee partners will not fill the pipelines with gas.

“[Ghana Gas Processing Plant] have an obligation to give us a certification that the facility can receive hydrocarbons safely on which basis we can then give them gas together with other conditions that were agreed on.”

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