Liquefied Natural Gas (LNG) Supply to Ghana: The Politics and the Reality - ACEP

Gas to power has been trending globally given the benefits it has of being cheaper and cleaner compared to other fossil fuels. Ghana signed up to the West Africa Pipeline Project (WAGPP) in recognition of the important role gas could play in the power sector. The initial contracted volume of gas was 120 million standard cubic feet (mmscfd). After completion of the project, Nigeria could not deliver the contracted volume from first gas in December 2008.

In 2012 Nigeria Gas supply was cut as a result of an accident in Togo where the pipeline was severed by the anchor of a ship. At the same time, Ghana’s domestic gas supply could not be delivered on time. The Jubilee field was expected to herald domestic gas supply by the end of 2012. This could not be achieved because of technical and financial reasons. Ghana struggled in many instances to satisfy the conditions for the disbursement of the Chinese Development Bank (CDB) loan facility and timely disbursement of counterpart funding by government itself. In 2012 the power crisis started as a result of gas supply curtailments from Nigeria and Jubilee. The push for alternative supply of gas heightened and Liquefied Natural Gas (LNG) supply through the use of Floating Storage and Regasification Unit (FSRU) was highly considered by government through private capital. The Energy Commission (EC), the technical adviser to government, by 2013 had licensed seven (7) companies to develop LNG projects. Notwithstanding, there remains an indecision over the supply of LNG to Ghana which has lasted for more than 5 years.

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