Accueil NEWS Ghana: GNGC signs $700m deal for second gas processing plant

Ghana: GNGC signs $700m deal for second gas processing plant

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Ghana: GNGC signs $700m deal for second gas processing plant

The Ghana National Gas Company (GNGC) has signed a project implementation agreement with its joint venture partners to build a second gas processing plant (GPP Train 2) at Atuabo in the Ellembele District of the Western Region.

The project, estimated at $700 million, should be completed within 24 months. It would generate 1,500 direct and indirect jobs in the Atuabo enclave.

According to a report filed by Ghana News Agency, Dr Benjamin KD Asante, the Chief Executive Officer (CEO) of the GNGC, initialled the agreement on behalf of Ghana Gas while Dr Hilton John Mitchell, a representative of the Consortium, comprising the Integrated Logistics Bureau Limited, Jonmoore International, Phoenix Park Limited and African Finance Corporation, signed for the rest of the partners.

The construction of a second train gas processing plant with a design capacity of 150 million standard cubic feet per day (MMscfd), expandable to 300 MMscfd, to process additional raw gas volumes from the Greater Jubilee and TEN fields.

The project was part of the GNGC's strategic development plan and envisaged increasing the national gas processing capacity to 450 MMscfd.

The new gas processing facility will process raw gas with natural gas liquids (NGL) fractionated into pure components such as propane, butane, pentane and stabilised condensate components from the Jubilee and TEN fields.

Lean gas containing methane and ethane is to be tied into the existing GPP Train 1 lean gas export and delivered into the onshore export lines.

Some of the components of the GPP 2 train include the construction of a 150 MMscfd processing plant, expandable to 300 MMscfd, a storage facility, an additional set of compressors at the Atuabo Mainline compressor station and the provision of utilities and a liquid waste treatment system.

Speaking at the signing ceremony in Accra, Mr Kennedy Ohene Agyapong, Chairman of the Board of Ghana Gas, said the project, when completed, would enhance the operations of GNGC and further boost the utilisation of the country's gas resources for the government's industrialisation programme.

Mr Agyapong, who is also the Member of Parliament for Assin Central, said the facility would play a key role in helping Ghana achieve its energy transition goals of using renewable energy sources for industrial purposes and reducing global carbon emissions.

Dr Asante, CEO of Ghana Gas, said the project would enable it to become a fully integrated gas services company and provide a reliable supply of gas and gas derivatives to Ghana and the West African sub-region.

This would further realise the company's vision of supplying gas in a cost-effective and environmentally friendly manner, he said.

The new plant, when commissioned, he said, would improve the production of processed liquids from natural gas by 80%, compared to the existing facility, which produced between 40 and 50% gaseous liquids.

Dr Asante added that the plant would help the country generate more megawatts of electricity and ultimately solve the permanent power outages (dumsor) experienced in Ghana.

The by-products of the processed gas, he explained, could be used to make fertiliser, which would boost the agricultural industry and ultimately reduce the country's fertiliser imports.

Egyapa Mercer, Deputy Minister of Energy, said the project would provide useful additional infrastructure in the country's power generation system.

It would also support the government's efforts to provide alternative power supply to boost socio-economic development, he added.

Dr Hilton John Mitchell, speaking on behalf of the joint venture partners, expressed the consortium's commitment to working collaboratively with GNGC to deliver the gas processing plant on time and cost effectively.

The Ghana National Gas Company was established in July 2011 as a limited liability company to build, own and operate natural gas infrastructure for the gathering, processing, transportation and marketing of gas.

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