GNGC, Technip Clinch Deal

…Over Ghana Gas Infrastructure Project

By J. Ato Kobbie, Managing Editor

The Ghana National Gas Company (GNGC) has awarded to Technip, a contract for the front end engineering and design (FEED), for the construction of a national gas processing plant, to be sited at Domunli in the Jomoro District of the Western Region.

Technip, a Paris-based company, won the contract, shrugging off competition from the Worley Parsons Group and Toyo Engineering Corporation of Japan, two other companies that vied for the job.

Confirming the award of the contract, which was signed on Friday, October 14, 2011 Dr. George Adjah-Sipa Yankey, Chief Executive Officer (CEO) of GNGC, told The Business Analyst that the FEED is to be completed in six months. “Three things that would guide us are, quality, cost and schedule,” Dr. Yankey stated, stressing that the GNGC would not compromise on any of the three. Dr. Yankey said actual construction of the plant would take less than 12 months to complete, and therefore was confident that Jubilee Gas would be piped to the Domunli processing plant within reasonable time to prevent any adverse effect that gas re-injection of the natural gas may have on the Jubilee reservoir. Explaining further, the GNGC boss said “from the kick-off of the FEED this week, it is expected to be completed in six months.” The gas infrastructure project is principally to be funded from the $3billion China Development Bank (CDB) loan, which was recently approved by Ghana’s Parliament. About $850million is earmarked for the construction of a national gas infrastructure. Dr. Yankey disclosed that Government was financing the project, when asked how it was being funded since the CDB facility is not ready yet for drawdown. The Ghana National Petroleum Corporation (GNPC) had funded the initial construction of the deepwater pipeline laying. Technip, early this year, constructed the 14-kilometre deepwater stretch of gas pipeline from the Jubilee Field, using the Apache II drillship, under a contract awarded by the (GNPC), while Intecsea-Worley Parsons Atlantic has also just completed the FEED for the 36-kilometre shallow water pipeline. The completion of the FEED for the shallow water gas pipeline comes one month ahead of the November scheduled timeline. “We are happy that we have got this ahead of the November timeline,” Dr. yankey stated, adding “I’m very confident that we’ll be able to develop the required gas infrastructure facility to enable us successfully evacuate gas from the Jubilee Field, within reasonable time.” Continuing, he said “We are now getting ready to undertake a competitive tender to enable all companies that fabricate these products to have an equal chance of participating,” he stressed, underlying how transparent his outfit would go about execution of the project. The GNGC boss said together with the Jubilee partners, “We are all working together to forestall any adverse impact of continued gas reinjection on the Jubilee reservoir.”

Costs The construction and laying of the 50-kilometre 12-inch offshore pipeline from the Jubilee Field to the Domunli site for the gas processing plant is estimated to cost $100million, while the onshore 120 kilometre 20-inch pipeline from the plant site to Aboadze will swallow about $190million. Dr. Yankey, who had given assurance in an interview with this paper that GNGC, was determined to be meticulous and professional but with speed, to end continued flaring, said the company would resort to competitive tender to give equal opportunity for all industry players. The Jubilee Operator, has, since April this year been re-injecting about 80% of gas from the field into the reservoir, utilizing some, and flaring the rest. It was estimated that continuous re-injection of gas into the Jubilee reservoir beyond 18 to 24 months could threaten the safety of the reservoir. Technip, is a Paris-based world leader in project management, engineering and construction for the energy industry, and is expected to rake in two million dollars from the FEED contract. Technip Technip, which has presence in 48 countries, on Wednesday, October 12, 2011 was awarded another contract by ExxonMobil Chemical for a grassroots lubricant base stock facility to be built at ExxonMobil’s integrated refinery and chemical plant complex in Baytown, Texas.

The project will provide a new synthetic lubricant base stock plant, consisting of the process unit, associated pipe rack and product tanks, as well as pumping and firewater system.

The contract covers project management, detailed engineering, procurement, and construction.

Technip’s operating center in Houston, Texas will execute this contract, which is scheduled to be completed in 2013. j.atokobbie@yahoo.com