Though the ‘Golar Tundra’ floating storage and regasification unit (FSRU) has long arrived in Ghana and is ready for immediate startup – the operator Golar LNG said it is holding off, awaiting outstanding charter payments for the vessel. Ghana seeks to import LNG to fuel power plants in the eastern part of the country, where 600 MW of capacity is stranded.
“Amounts due under the contract started to accrue from mid-July. Charterers of the FSRU, West Africa Gas, have however experienced significant delays with respect to the part of the project for which they are responsible,” Golar LNG explained in its latest earnings statement on August 31.
The ‘Golar Tundra’ FSRU berthed at Tema port, east of Ghana’s capital Accra, at the end of May and issued its notice of readiness the following month. It has been chartered to a project owned by West African Gas, a joint venture run by Nigerian National Petroleum and Sahara Energy Resources.
Oslo-based Golar LNG said it issued invoices for the outstanding payments and is considering legal steps to exercise its contractual rights – should West Africa Gas contest their obligations under the charter. So far, Golar said it would maintain a “constructive dialogue with West Africa Gas with regards to finding a mutually agreeable way forward for the project which is both needed and supported by the government of Ghana.”
RLNG meant to revive idle power plants
The Government of Ghana has signed an accord this spring to charter FSRU as it seeks to end gas shortages in the eastern part of the country, where around 600 MW of gas-fired capacity is stranded.
These power plants, notably the 236 MW Tema dual-fuel unit, were initially meant to be supplied through the West Africa Gas Pipeline but gas flow through that line is very intermittent.
“Anytime gas does not come through the West Africa Gas Pipeline, then it means that almost 500-600 MW of power is not available to us,” President John Dramani Mahama said when underlining the importance of an FSRU to overcome gas supply shortages.
Phase 2 of the Asogli power plant was due for commissioning in May – however, there is little point in getting the second unit ready as already the 180 MW unit 1 is rarely operational over a lack of gas supply.
Barges provide emergency power
In the absence of reliable electricity supply from onshore installations, the government also turned to floating power barges. A 225 MW Karpowership, moored at Tema harbour since November last year, has been emergency power to Ghana’s national power grid starting from the start of this year.
Since July, Karpower Ghana has intensified talks with state-owned Electricity Company of Ghana (ECG) as it seeks to boost Karpower’s generation capacity to 675 MW. To that end, a 450 MW power barge is currently constructed in Turkey and due to be shipped to Ghana in early November.