Ghana Wins Major Import Contract for LNG with Equatorial Guinea
Ghana has just signed an import agreement with 150 to 200 million cubic feet a day for 15 years with Equatorial Guinea. Formed in the form of a Memorandum of Understanding, it was initialed by Ghana’s Energy Minister Boakye Agyarko and his Equatorial Guinean counterpart Gabriel Mbaga Obiang Lima.
According to the Ghanaian Energy Minister, “this agreement will mark the stability of Ghana’s power generation, promote low electricity production costs and, therefore, set lower tariffs for consumers . “
This contract is a giant step towards reaching the objectives of the Ghanaian electricity sector because the imported LNG will be mainly devoted to the production of electricity.
Ghana had signed an import agreement for LNG via Nigeria’s West African Gas Pipeline Company (WAGPCo). But because of the acts of sabotage in the Niger Delta, Nigeria’s main gas production basin, it almost never receives the necessary volumes. Instead of 120 million cubic feet of gas per day, Ghanaian terminals receive only 30 million cubic feet of gas per day.
This has a negative impact on its ability to generate electricity from gas. This is what has led the authorities to turn to other sources of supply.