Ghana Gas ready by July

The Ghana National Gas Company Limited says barring any last minute hitch, the first natural gas to the plant will be received in the first week of July.

According to the company, the gas processing plant is 90% complete.

Andrew Adu from the Commercial Department of the company announced this at a workshop organised by the Public Utilities and Regulatory Commission (PURC) on Natural Gas Processing and Pricing from domestic gas resources.

The workshop discussed domestic gas processing and pricing methodologies.

According to Mr Adu, 99% of offshore pipelines have been completed, adding that pre-commissioning activity were ongoing, to be followed by Tullow’s interconnection.

He explained that onshore pipelines were also 98% complete, awaiting commissioning.

He announced that Ghana Gas has been approached by a number of Independent Power Producers (IPPs) who have secured temporary Generation License from the Energy Commission.

According to him, estimated IPPs gas demand is in the region of 900,000 MMbtu/d, explaining that all IPPs seeking to enter into GSA with Ghana Gas must complete a Due Diligence Report.

Mr Adu said Ghana Gas would enter into NDA, MOU and HoA with IPPs prior to GSA and Tie-In Agreement discussions

He noted that Jubilee Gas is Associated Field and commercial arrangements to bring the gas to the market would involve Interruptible Agreements, saying under Foundation Agreement Payment Security Requirements may be challenging.

According to him, commercialisation of Non-Associated gas under Sankofa/ENI Field would not get the benefit of liquid revenues so downstream Agreements will be under TOP regime with robust security arrangements.

He noted that despite the available gas reserves, we are taking other steps to diversify supply sources, including reverse flow of West Africa Gas Pipeline (WAGP) to send gas to Tema for industry and thermal plant as well as import Liquefied Natural Gas (LNG).

Mr Adu said fair, commercially driven and enforceable Gas Sales & Purchase Agreements and Cost-recovery pricing would encourage investments upstream.

He added that there was the need to encourage exploration away from Tano Basin (East Coast of Ghana) through Rebates and Tax holidays/ exemptions.