Unless Volta River Authority (VRA) will repay its debt of allegedly over $350 million for gas supply to power producers, Ghana Gas sees itself unable to service a $1 billion loan, made available by the Chinese Development Bank for construction of the Atuabo gas processing plant. If and when VRA pays back its debts, Ghana Gas “would pay the loan within five years,” CEO George Ajah-Sipa Yankey said.
The Atuabo gas processing plant is meant to provide cheap fuel for Ghanaian power producers but since its commissioning, the facility has run mostly one-third of its design capacity. Build at a cost of over $1 billion, the facility’s current underutilisation is estimated to cost operators over $219 million per year. Once finally in full operation, the Atuabo gas processing plant is meant to supply about 100 million cubic feet a day (mscf/d).
With Atuabo gas stalled, FSRUs may come to rescue
With Ghana Gas and VRA quarrelling over old debts and the Atubo project derailed, the government is now throwing its weight behind setting up floating storage and regasification units (FSRUs) to tackle immediate gas shortages. The first FSRU hoped to be in place by the end of this year.
Growing electricity demand in Ghana could underpin two additional FSRUs, even after domestic gas production from two offshore fields will come onstream. Pointing at Ghana’s two main power hubs - one in the west, one in the east,- John Abdulai Jinapor, Ghana’s minister of power told press in London on July 27 that ”nothing prevents us from putting in two LNG facilities [adjacent to both centres of power generation.]”
Ghana Grid Company (GRIDCo) announced in early June that the country’s power sector is set to receive as much as 300 mscf/d of additional gas over the next three years. The extra supply is predicted to come from increased domestic production coupled with increased LNG shipments.
More gas supply needed for Aboadze enclave
The national gas operator Ghana Gas intends to increase gas production from the current level of about 80 mscf as much as 150 mscf in the next three years in a bid to drive growth in the power sector, particularly in the ambitious Aboadze power enclave – home among others the 550 MW Takoradi Power Station.
Gas supply from the Sankofa-Gye Nyame (SGN) field is expected to support generation of about 1,000 MW, if it delivers the anticipated 180 mscf of gas per day. First gas from the project is expected in early 2018.