Business News of Tue, 4 Sep 20183
$350m China LNG deal to boost oil and gas sector
The Executive Director of the Kumasi Institute of Technology, Energy and Environment (KITE) Ghana, Ishmael Agyekumhene has described the 350 million dollar Liquefied Natural Gas (LNG) terminal deal with China as a good agreement that will boost Ghana’s oil and gas industry.
Mr. Agyekumhene is optimistic the deal will ultimately secure the supply of fuel to grow the energy sector.
Government yesterday [September, 2, 2018] signed a deal with the China Harbor Engineering Company for the construction of an LNG Terminal to be sited in Tema.
The project is estimated to provide 2million tones of gas yearly while generating about 1,600 jobs to Ghanaians.
The project will also provide 30 percent of Ghana’s total electricity generating capacity.
The LNG Terminal is expected to be completed in 18 months, and will be Sub-Saharan Africa’s first regasification terminal.
“We need an LNG facility to support the supply of natural gas but I’ve also talked about the fact that we need to make sure that we don’t over subscribe to this LNG because we are gradually building up on our indigenous power supply,” he said.
Mr. Agyekumhene further stated that the deal will be profitable to the country if it compliments local production of gas.
“If it is an additional supply and it is not coming to compete for the use of gas, then yes it is going to ultimately get us a little bit more secured,” he added.
About the LNG deal
This deal is on the back of a 12-year gas supply agreement between the Ghana National Petroleum Corporation (GNPC) and Rosneft, a global LNG trader and the world’s largest listed oil producer.
Rosneft subsequently engaged Tema LNG Terminal Company for the provision of the regasification services.