The CEO of the Ghana National Gas Company, Dr. George Sipa Yankey has told Citi Business News all civil and construction works under the second phase of the gas infrastructure project implementation will be done by Ghanaians.
According to Dr. Sipa Yankey, the decision forms part of government’s commitment to promote local content within the oil and gas industry.
“In this particular agreement we have an important clause on local content which has made it very clear in accordance with our local content laws that all the construction works and civil works are to be undertaken by Ghanaians,” he said.
Dr. Sipa Yankey said this during the signing ceremony of the 2nd phase of the gas infrastructure project implementation agreement between Ghana Gas and Jereii group; a Chinese listed oil and gas company with 17 years of experience.
He noted that Ghanaians will be allowed to undertake the project excerpt in situations that cannot be done by locally.
He stated that the arrangement is aimed at ceding projects in the sector to benefit Ghanaians.
“The project is the biggest to be undertaken in Ghana under Build Operate and Transfer (BOT) arrangements. This clearly demonstrates the public private partnership government talks about. This I think will be a model for other companies both private and public ones to follow” he stated.
The current agreement is a precursor to a Build Operate and Transfer agreement which will be ready in three months. The project is expected to be completed in 24 months.
Meanwhile, the first phase of the project when completed is expected to handle some 380 million standard cubic feet of gas.
The figure is however expected to increase to 550 million standard cubic feet of gas per day when the project is finally completed with a compressor.
The Ministry of Petroleum mandated Ghana Gas to build the Onshore Natural Gas Transmission Pipeline (NGTP) from Aboadze in the Western Region to Tema in the Greater Accra Region.
The 24-inch 290-kilometre Onshore Pipeline would pass through four regions – Western, Central, Eastern and Greater Accra.
The onshore pipeline is to be constructed on a Build, Operate and Transfer (BOT) model within 24 months.
The pipeline will provide stable, and sustainable capacity for the evacuation of Ghana’s natural gas flows from the Tano Basin and will allow GNPC to off take gas from the ENI fields when its gas comes on stream in 2018.
GNPC has already entered into an agreement with the ENI and its partners to be the off-taker of gas from the Sankofa fields when it is ready and per the arrangements they are bound to pay for gas they do not even take.
The Sankofa project is expected to produce at maximum 170 mmscfd while some 80 mmscfd is expected from the Tweneboah, Enyenra and Ntomme (TEN) project, in addition to the 120 million from the Jubilee Field.
The project is expected to also provide bi-directional transport of gas between critical load centres of Takoradi and Tema and to provide supply-security between the two key market points.