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200 mmscf of Natural Gas Needed to Meet Daily Demand

  • SOURCE: reportingoilandgasghana.org | Gideon Ofosu-Peasah
    • POSTED ON: February 15, 2018
    • CATEGORY:

    The Atuabo Gas Plant on 1st February 2017 shut down for routine maintenance. This was following the cessation of the flaring and venting of an essential gas by-product Isopentane. The Gas Plant had resorted to flaring the derivative against Ghana’s no gas flaring policy only after several attempts to sell it off proved vain.

    Quite recently, the government of Ghana through the Ghana Gas Company entered into an agreement with ENI to commercialize the gas derivative to assist the downstream petrochemical industry and to channel isopentane as fertilizer feedstock to aid the agro-chemical industry. GE Power and Marinus Energy also announced a pilot project to capture Isopentane gas and use it as a feedstock for generating electricity.

    In addition to the above, Ghana National Gas Company together with upstream giants like Eni, plan to increase daily production to 405 mmscf by constructing a tie-in to Atuabo.

    Currently, The Jubilee Field produces 120 mmscf, TEN Field 60 mscf and Sankofa 180 mmscf totaling 360 mmscfd. Considering this current production, the Atuabo gas plant has the capacity to produce 150 mscf as against the estimated 560 mmscf of natural gas demand by the country daily.

    Source: GNGC, 2018,Author

                               Source: GNGC, 2018

    Implications

    1. Ghana must depend on Nigeria for natural gas for 200 mmscf of natural gas. This has negative implications for Ghana’s power supply barring financial challenges and unforeseen supply disruptions. We recall President Mahama, in his attempt to rationalize the load shedding that has brought a lot of hardships on the lives of Ghanaian people and industry in 2012 stated that the rupturing of the West Africa Gas Pipeline, which supplies gas to fire the Aboadze Thermal Plant, was caused by “an act of God“ and also explained that the dropping of an anchor by a ship, which in turn ruptured the gas pipeline which supplied Ghana gas from Nigeria.
    2. Ghana is nowhere close to natural gas sufficiency in the medium term since the expansion in daily production to 405 mmscf will still leave a deficit of 155 mmscf.

     

    Gideon Ofosu-Peasah

    Gideon Ofosu-Peasah

    Policy Analyst at Penplusbytes
    Gideon Ofosu-Peasah is the Policy Analyst and Team Lead for the Extractives Department at Penplusbytes, where he provides insights, advice and leads in producing robust research backed projects for the team. He has over 7 years of experience in the Ghanaian oil and gas industry and has a number of scholarly research papers to his credit which have been published in the prestigious Social Science Research Network(SSRN) electronic journal and on reportingoilandgas.org. He holds an Msc in Economics with specialization in Energy and Natural Resource Economics from the Kwame Nkrumah University of Science and Technology.
    Gideon Ofosu-Peasah

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