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AfrElec GAS-FIRED GENERATION AfrElec

IES urges Ghana to withdraw

support from Tema LNG terminal

GHANA GHANA’S Institute of Energy Security (IES) News. “We already have excess gas being pro-
has urged officials in Accra to withdraw their duced in the western region, and when you are
endorsement for plans for the construction of an importing more gas at an extra cost, that means
LNG import terminal at the port of Tema. you are putting extra burden on the country’s
In a report published last week, IES asserted finances,” he asserted. “What we are suggesting
that Ghana had the ability to meet its own needs is that there should rather be a liquefaction unit
with domestic production and did not need to at Tema because that is the easiest point where we
import natural gas. It recommended specifically can reach other countries and where we can have
that the country make more extensive use of the [surplus] gas ... processed into a liquid form and
associated gas that it extracts from its oilfields. transported to other countries [that] need gas.”
At present, the report noted, associated gas Moses also suggested that Ghana’s govern-
accounts for more than 59% of Ghana’s total ment take measures to stimulate domestic gas
gas output, or around 68mn cubic feet (1.93mn consumption. Accra should establish a favoura-
cubic metres) per day. Most of these volumes are ble regulatory regime and help expand the coun-
being flared off or re-injected into oil reservoirs try’s gas infrastructure, he said.
rather than transferred to Ghana National Gas IES published its report shortly after Tema
Co. (GNGC) for domestic consumption, it said. LNG Terminal Co. (TLTC), the owner of the
By contrast, IES pointed out, GNGC handles Tema LNG terminal, indicated that it might be
most of the country’s natural gas output. This able to start commercial operations in the near
includes gas from Ghana’s three commercial future. According to a spokesman for the consor-
fields, which turn out around 44 mmcf (1.25 tium, the terminal will be “mechanically ready”
mcm) per day, or about 38% of total production, to take delivery of its first shipment within the
it said. framework of a long-term supply contract with
If natural gas supplies could be supplemented Royal Dutch Shell (UK/Netherlands) by the end
with associated gas, Ghana would not need to of March.
import LNG, the report argued. It also urged The terminal consists of a floating regasifica-
officials in Accra to consider proposals for using tion unit (FRU) and a separate floating storage
associated gas as feedstock for the production of unit (FSU), both of which have been moored at
LNG that could be exported to other countries a new jetty built by West Africa Gas. The FRU is
in the reason, speculating that this arrangement capable of handling 1.7mn tonnes per year (tpy)
might prove more profitable than imports via the of LNG, and the storage vessel boosts the facil-
Tema LNG terminal. ity’s total storage capacity to 145,000-160,000
Fritz Moses, a research analyst at IES, stressed cubic metres.™
this point in an interview with Citi Business

P8 www. NEWSBASE .com Week 11 18•March•2021