An Energy Analyst, Muhammed Amin Adam has told Myjoyonline that the current delays in the completion of the gas infrastructure project by SINOPEC could result in the harmful practice of gas flaring at the Jubilee oil field.
China’s SINOPEC has threatened to abandon the project because of financial challenges government is having in paying it for pre-financing the project.
The Ghana Gas Company has already hinted the current bottleneck could potentially affect the completion of the project.
This will automatically have implications for the Jubilee Field which analysts have warned can no longer hold gas after June this year.
Mr. Adam who is also the Executive Director of the Africa Centre for Energy Policy explained that the law allows for gas flaring for “operational reasons and you can flare when you are compelled to”.
According to him, “when we are not ready with our gas infrastructure they are compelled to flare…”
He however raised concerns about the environmental implications of the process if it happens saying, “when you flare you know the environmental implications of flaring and it’s for this reason Ghana has decided to uphold high levels of environmental standards and therefore if even before we mature into production we are already going to face high environmental risks, then we will not be starting well as a new oil producing country”.
The $700 million Gas infrastructure project is being funded from the $3 billion loan from the China Development Bank (CDB) which is currently delaying.
Get the latest news and updates on Ghana’s oil and gas value chain by following us Reporting Oil and Gas on twitter @oilgasghana and like our facebook page and get at us on Google+. Subscribe to our group to get updates.