The Ghana National Gas Company (GNGC) last Friday, signed an agreement for construction of a second gas processing plant to process natural gas from its upstream partners, specifically Greater Jubilee and TEN fields.
The plant, referred to as ‘GPP Train 2’, when completed, is expected to enhance and utilise natural gas in the country.
With an estimated cost of US$700m, the project will be constructed with an initial capacity of 150 Million standard cubic feet per day (MMscfd), but would be expanded to 200MM scfd, moving forward.
The official signing, which took place at GNGCs’ premises in Accra was executed by Dr Benjamin K.D. Asante, the Chief Executive Officer (CEO) of the GNGC and Dr Hilton John Mitchell, a representative of the Consortium, comprising the Integrated Logistics Bureau Limited, Jonmoore International, Phoenix Park Limited and African Finance Corporation, signed for the rest of the partners.
Aside the 150 MMscfd plant itself, other facilities that will be established is storage facilities, compressor package, utilities and liquid waste treatment systems.
It is envisaged the project would be critical in meeting Ghana’s energy demand and play a key role as driver in the industrialisation agenda of the country.
It is also expected to increase the country’s gas stock and its economic value by improving the energy supply to eradicate power outages and its negative impact on businesses. It is also geared towards the expansion of Ghana Gas infrastructure.
Speaking at the signing ceremony, Dr Asante said Ghana’s vision of supplying gas in a cost-effective and environmentally friendly manner would be fulfilled upon completion of the project.
He also indicated that his outfit will become a fully integrated Gas Services Company due to the project since it will enable it provide reliable supply of gas and gas derivatives in Ghana and West African sub-region.
“The new plant, upon coming on stream, would improve the output of liquids processed from natural gas to 80 per cent, compared to the existing facility, which produces between 40 and 50 per cent of gas liquids,” Dr Asante said and added that the plant would help the nation to generate more megawatts of electricity and ultimately resolve power outages experienced in Ghana.
The Board Chairman of GNGC and Member of Parliament for Assin Central, Mr Kennedy Ohene Agyapong, expressed his joy regarding the project.
In this era of global discourse on transition fuels, it is not doubtable that natural gas will become a key energy transition fuel for Ghana, Mr Agyapong said and indicated that the GNGC is resolved and poised to play its leading role in harnessing and diversifying the utilisation for the socio-economic development of the country.
According to him, his outfit has approved the five year strategic plan that the GNGC has put in place to achieve its vision of ensuring the increase in gathering, processing, transporting and marketing of natural gas resources in the country.
“As the board chairman of this vibrant company, I, together with my colleague board members approved the 5 year strategic plan that the company has proposed for the gathering, that is processing, transporting and marketing of natural gas resource in the country.”
Role of Government
Speaking on the role that government will play in ensuring that GNGC achieves its vision of increasing the country’s natural gas stock, the Deputy Minister of Energy, Me Andrew Egypa Mercer, said the project would play a crucial role in government’s effort to provide affordable power supply for social and economic development, at a time when the world is looking at ways to transition from other sources of power to natural gas.
He said government will, therefore, lend the GNGC all the support it will need to complete the project.
“I can assure of the government’s commitment to providing all the necessary support to see to the realization for the project particularly in the context of an ongoing global conversation on energy transition,” the Deputy Minister said.
The Role of the Media
The Head of Corporate Communications at GNGC, Mr Ernest Owusu-Bempah noted that the project is a historic milestone and one that has also brought about indigenization and job creation among the youths including those in the catchment areas.
He, therefore, charged the media to collaborate with his outfit to educate Ghanaians on the relevance and the benefits of the project.
“I wish to reiterate the role of the media as stakeholders by collaborating with Ghana Gas in promoting and educating the populace on the relevance and the benefit of the project to the entire country,” he pleaded.
