Ghana To Boost Power Supply With Major LNG Projects By 2020
Gilbert Borketey Boyefio
Ghana is expected to boost its power generation by 2020 with the introduction of two LNG projects, namely, the Tama LNG Terminal Project and a small-scale virtual LNG pipeline project.
The Tema LNG Terminal project consists of a Floating Storage, Regasification Unit (FSRU) with expected capacity of 250 mmscfd expected to be completed in 2020. The initial contracted supply amount is about 180 mmscfd. The project is controlled by Helios investments who have signed an agreement with China Harbour Engineering Company for the construction of the FSRU.
GNPC has signed a-12-year agreement with Rosneft of Russia for the supply of the LNG. GNPC earlier in 2017 signed an agreement with a private company, Quantum Power for the latter to construct and operate a 500 mmscfd floating LNG storage, regasification and delivery facility moored offshore Tema.
The US$550 million facility which was supposed to be operational this year apparently fell through and has been replaced with the Rosneft facility.
The small-scale virtual LNG is a virtual pipeline project to supply gas to SunonAsogli and Trojan power plants.
It would comprise seventeen ’52-cubic-metre’ LNG trucks ferrying LNG from small scale LNG ships berthed at the TemaPort; eight trucks at the loading gantry at a time and additional eight trucks moving every night to deliver the fuel to the 560 MW gas fired SunonAsogli Power Plant thermal plants.
Loading is estimated to take an average of an hour. Initial contract quantity is said to be 60 mmscfd.
The source of LNG for the small-scale project is the LNG2Africa initiative; an Equatorial Guinea initiative to sell small scale LNG for utilisation in Africa.
This was disclosed by Mrs. Mavis Sika Okyere, a Pipeline Integrity Engineer, Ghana National Gas Company, during a presentation at the LNG West Africa conference 2019 in Accra, Ghana.
According to her, current gas demand in Ghana is primarily for power generation and is focused around power plants at Aboadze and Tema.
Industrial demand is also concentrated in these areas. Future power generation plans include expansion and new projects at these sites and also new projects at Atuabo, Esiama and Domunli.
The tables below demonstrate the need for additional feed gasfor gas fired power generation in Ghana between 2016 and 2025 beyond supplies from local production (TEN, Sankofa, Jubilee) and West African Gas Pipeline (WAGP) gas supply.
“The Jubilee Field produces 120 mmscfd TEN Field 60 mmscfd and Sankofa 180 mmscf totaling 360 MMscfd. Considering this current production, the Atuabo gas plant has the capacity to produce 150mmscf as against the estimated 560 mmscf of natural gas demand by the country daily.
Eni have constructed an Onshore Receiving Facility (ORF). Ghana National Gas Company together with Eni has constructed a tie in to GNGC pipeline and has increased daily production to 405 mmscf. However, there is still deficit of 155 mmscf in Gas supplied for power generation,” she pointed out.
She however noted that the estimated deficit of about 155 mmscfd is within the breakeven point for a typical 200-250 mmscfd LNG regasification facility.
Therefore, to improve the overall power supply in the country, she proposed “Investments in liquefied natural gas as an alternative gas supply to augment the limited local and unreliable gas from the West Africa Gas Pipeline from Nigeria should be pursued.”
LNG supply option however would be relatively expensive compared to local or the WAGP gas but cheaper than crude oil.
LNG imports would supplement domestic gas to make up adequate supplies both for power and industry requirement such as for the anticipated production of fertilizers (urea), alcohol (methanol) and other petrochemicals.
However, according to the Commercial Manager, Tallow Ghana Limited, Mr John McLaughlin, noted that Ghana has significant domestic gas offshore, enough for the next decade, and therefore does not need to import LNG.
He noted that the TEN and Jubilee oil production increases with increasing gas demand, adding that, “A robust Ghana gas market will also support further investment in offshore exploration.”
Stating that LNG is more expensive than domestic gas, McLaughlin said the government of Ghana benefits from a far higher share of value from domestic gas production compared to LNG.
“LNG import “shuts the door” on offshore gas development for years. TEN and Jubilee oil production increases with increasing domestic gas offstage,” he indicated.