Business News of Tuesday, 27 January 2015
The Government of Ghana will on Tuesday (today) sign a new deal with Italian oil giant, ENI, for the supply of about 180 million cubic feet of gas.
President John Mahama announced the signing recently when he addressed Ghanaians in Germany while on a two-day visit there last week.
“On the 27th, we are signing the ENI/Sankofa field agreement in Accra, and it’s going to deliver between 150 and 180 million,” said President Mahama.
Ghana is currently reeling under a gradually worsening power crisis, which state power transmitter Ghana Grid Company (GRIDco) has warned would get worse.
The country has a production shortfall of between 500 and 600 Megawatts due to Nigeria’s failure to supply gas to Ghana from the West Africa Gas Pipeline (WAGPco), to power thermal plants within the Tema enclave.
The low water level in the country’s main hydroelectric power station, Akosombo Dam, which contributes about 37 percent of Ghana’s power supply as well as in the Bui and Kpong Dams have also worsened the situation.
The ENI/Sankofa deal is therefore expected to supplant gas supply to Ghana for power production through Ghana’s thermal plants.
The sealing of the contract comes after a government negotiating team made up of officials of the Ministry of Energy & Petroleum, Ministry of Finance, the Ghana National Petroleum Corporation (GNPC) and ENI Exploration, operators of the offshore Cape Three Points (OCTP) block, concluded talks to allow ENI commence production of gas.
President Mahama told Ghanaians in Germany than rather than relying on Nigeria’s unreliable gas supply, Ghana must focus on looking “at our own gas reserves and see how we can produce enough gas to be able to ensure energy security for Ghana,” since the country has a lot of gas potential.
Apart from the ENI/Sankofa deal, the President said: “We potentially can get a 150 standard cubic feet from the Jubilee Field. We are developing the TEN field, which will come on stream in 2016 and that again can provide us between 50 and 80 standard cubic feet.”
“…So going forward, we are looking at about 300 and 350 million standard cubic feet which will be very important in terms of generating power and ensuring energy security for us,” Mr Mahama said.