The Vice President and Country Manager of Kosmos Energy, Mr Ken Keag, told the GRAPHIC BUSINESS in an interview that the discussions centered around how the gas reserves could be properly and fully utilised to help address the power challenges and hopefully increase the country’s power capabilities.
This will not be limited to solving just the current power shortfall, but for enlarging the scope for growth to support various developments in other sectors of the economy.
“We believe that we’ve a lot to contribute. We also believe that we can help in energising Ghana, not just its people but also particularly in the power sector; gas is very much an important part of that,” Mr Keag said.
Total proven gas reserve from jubilee, ENI, and other fields is estimated at about 5.5 trillion standard cubic feet (SCF). The ENI project alone can generate about 170 million SCF a day, that will add to what comes from the Jubilee field.
The Jubilee field has associated gas of about 1.2 trillion SCF. The Atuabo gas processing plant has the capacity to process 150 million SCF per day.
The oil and gas producer, which first discovered oil in commercial quantities in the country’s offshore fields, believes it has ideas that can feed into the ongoing development in the gas sector to enhance the power situation and hopefully resolve it in the medium term.
“We can provide support to the government and certainly there are discussions around the development of gas into the future and how that can contribute in resolving the ongoing issues in the power sector,” Mr Keag said.
Alternative power sources
Ghana used to rely solely on hydro power generation. This has, however, been a challenge for the past 25 years, reducing the contribution of hydro to about 60 per cent.
With hydro power failing the country, natural gas is proving to be a very fundamental part in addressing the country’s energy challenges and there are a few thermal power plants around. Besides the Sunon Asogli power plant, there are more than a couple more combined cycle plants coming up at the Kpone power enclave. They include the expansion of the Asogli plant itself, the 320 megawatt Kpone Independent Power Plant by Cenpower and Volta River Authority’s 220 megawatt thermal plant.
On the gas production front, there are various projects that Kosmos says can enhance its capabilities of helping the country end its power crisis.
“Jubilee gas is already flowing; Tweneboa, Enyenra and Ntomme (TEN) development will come on stream next year and deliver additional gas few years. Other gas resource will come from ENI,” Mr Keag added.
Notwithstanding the fluctuations in crude oil prices, Kosmos is on course to maintain its US$500 million investment in Ghana this year. It also hopes to continue to invest 70 per cent of its capital expenditure year-on-year in projects in Ghana, where the young company drilled its first-ever oil well.
Kosmos will invest US$1.2 billion in the Tweneboa, Enyenra and Ntomme (TEN) Project – the three oil and gas fields are part of the Deepwater Tano license – the company also plans further developments on the jubilee field including discoveries in West Cape Three Points.
The company first discovered oil in Ghana in 2007 on the jubilee field which is currently producing 110,000 barrels a day. The company believes it can produce more oil from that field and is therefore making some investments to increase production. — GB