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DMEA SUPPLY & PROCESSING DMEA

ACEP urges Ghana to invest

in associated gas utilisation

AFRICA THE African Centre for Energy Policy (ACEP), describing itself as capable of handling enough
a Ghanaian think-tank, said on July 12 that gas to meet Ghana’s needs and also serve as a hub
Accra should consider investing in associated for small-scale deliveries to other West African
gas utilisation as well as LNG imports, as the states. The Ghanaian Times quoted Edmund
country would benefit from making full use of Agyeman-Duah, TLTC’s project manager, as
its hydrocarbon resources. saying: “Tema LNG’s year-round supply of gas
Charles Ofori, policy lead at ACEP, pointed will enable the Ghana National Petroleum Corp.
out during the CSO Budget Forum that crude (GNPC) to supply reliable and cost-effective
oil producers working in Ghana had burned off gas into the Tema power and industrial enclave,
47bn cubic feet (1.331bn cubic metres) of associ- while strengthening West Africa’s energy
ated gas worth $300mn between 2019 and 2021. security.”
He reported that domestic demand for LPG, It is worth noting, however, that TLTC has
which is made from processed gas, had been ris- yet to receive its first load of LNG. The com-
ing during that interval and stated that flaring pany, which is backed by London-based Helios
had prevented the country from realising the Investment Partners and South Africa’s African
value of the gas and from putting it to good use. Infrastructure Investment Managers (AIIM),
The CSO Budget Forum is a gathering of civil has repeatedly announced its readiness to take
society organisations (CSOs) that seek to influ- delivery of its first cargo from Shell (LNG), only
ence the government’s budget discussions. to adjust its schedule and then push its target
Ofori acknowledged that significant invest- date back once again.
ments would be required to facilitate the utili- According to previous reports, TLTC’s ter-
sation of associated gas from domestic oilfields. minal consists of a floating regasification unit
But he also argued that the Ghanaian govern- (FRU) and a separate floating storage unit (FSU).
ment’s decision to prioritise the importation of The FRU is capable of handling 1.7mn tonnes
LNG via an offshore terminal near Tema was per year (tpy) of LNG, and the FSU can store
affecting the country’s ability to attract funding 145,000-160,000 cubic metres of gas. Both ves-
for associated gas utilisation projects. sels are already present at the terminal but have
In the meantime, he commented, the coun- yet to begin regular commercial operations.
try continues to have unreliable power supplies, GNPC has arranged to use the terminal to
even though the rate of electrification is high. receive LNG from Nigeria from a unit of Shell
This combination hampers industrial develop- under a long-term off-take contract. Officials
ment, he noted. in Accra have said they hope the deal will make
Tema LNG Terminal Co. (TLTC), the oper- larger volumes of gas available on the domestic
ator of the LNG import facility, has put itself market, supplementing local production and
forward as the best solution to this conundrum, pipeline imports from Nigeria.™

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