Ghana has signed a Heads of Agreement with Equatorial Guinea for the supply of 150 million to 200 million standard cubic feet of gas per day of Liquefied Natural Gas (LNG), as part of the measures being put in place by the government of President Akufo-Addo to guarantee the country’s energy security.
The agreement was signed by Ghana’s Minister for Energy, Mr. Boakye Agyarko, and Mr. Gabriel Mbaga Obiang Lima, Minister of Mines, Industry, and Energy of Equatorial Guinea, and witnessed by President Akufo-Addo and President Teodoro Obiang Nguema Mbasogo.
Briefing journalists on arrival at the Jubilee Lounge of the Kotoka International Airport, Mr. Boakye Agyarko stated that there had been previous agreements entered into between the two countries that did not come into effect.
“But this time, we have been given the marching orders by both Presidents to make sure that by the end of 2017 the agreements (for the supply of LNG) come live. The significance of this gas supply is of the stable state of power generation in our country,” he said.
Ghana’s Energy Minister indicated that “for some time, we relied on Nigeria for the supply of gas from the Nigeria Gas Company, transmitted by the West Africa Gas Pipeline Company. The performance of that arrangement has been very unsatisfactory. Out of the 120 million standard cubic feet of gas per day, we receive, on a daily basis, on the best of days, only 30 million standard cubic feet of gas per day, which had a negative impact on our ability to generate power, using gas as its fuel stock.”
The Ministers of Energy after the signing of the Heads of Agreement
The arrangements with Equatorial Guinea, he added, however, will bring in LNG, which can be stored for 21 days and used accordingly to further improve Ghana’s power situation.
“Properly delivered, this will allow Asogli, for example, to expand its power production from 120 MW and scale up all the way to 580 MW. This will, to a very large extent, stabilise further the electricity generation, transmission and distribution that we have,” the Energy Minister stated.
He continued, “At the conclusion of the arrangement, it is our faithful expectation that gas, as a feedstock, instead of crude oil will be cheaper in terms of power production. This could mean that once the cost of producing electricity comes down, we will be in a further position to lower the user tariffs that our citizens pay for electricity.”
Boakye Agyarko described this as good news, stressing that “we are glad that under the President’s leadership and direction, we have been able to come thus far. The nation will begin to benefit from what has happened over this trip.”
Latest Stories
-
WAFU B U-17 Championship: Ghana drawn in Group A, face Benin and Cote d’Ivoire
5 mins -
Two hit by stray bullet as Police clash with ‘wee smokers’
18 mins -
Okyeame Kwame aims for another Artiste of the Year win after 15 years
30 mins -
NAGRAT gives government one-week ultimatum to redeem unpaid pensions for 700,000 workers
32 mins -
Deloitte launches Technology, Media and Telecom predictions for 2024
50 mins -
Meta AI expands to Ghana, Nigeria and other countries in Africa; adds new features
1 hour -
GPL: Expect a new Kotoko against Samartex – Ogum tells fans
2 hours -
Court orders service of notice for DNA test to Mohbad’s wife
2 hours -
Changes to Ghana’s oil and gas royalty and licensing scheme to be implemented in 2024
2 hours -
Ghana’s oil production to rebound in 2024 growing by 5% – Fitch Solutions
2 hours -
Davido gifts fan $50K to clear off her student loan
2 hours -
Netflix: Profits soar after password sharing crackdown
2 hours -
OSP files additional charges against former PPA CEO Adjenim Boateng Adjei
2 hours -
Samuel Anini’s ‘Legacy of Hope’ to be launched in Finland
3 hours -
Fitch Solutions projects 19.0% average inflation for Ghana in 2024
3 hours