President commissions gas usage for Karpowership

Accra, Dec. 8, GNA –
President Nana Addo Dankwa Akufo-Addo has commissioned the usage of gas from
the Atuabo Gas Processing Plant to power the relocated 450 megawatt
Karpowership at the Sekondi Naval Base in the Western Region.

The conversion of
the Karpowership from heavy fuel oil usage to natural gas for power generation
is expected to save the country a monthly take-or-pay cost of 40 million
dollars and projected annual savings of 480 million dollars.

At a valve-opening
ceremony on Saturday, President Akufo-Addo said the conversion was in line with
his Government’s overarching plan of promoting the use of gas as the primary
fuel for power generation in the country.

He said the switch
was to ensure the maximum utilisation of indigenous gas in the Western Region
to reduce, and to eventually eliminate, the financial consequences under the
take-or-pay obligation of the Karpowership Contract.

“The arrangement
that we have made with the companies is that the gas that comes out of the
ground belongs to us. We are not paying for it. If it is ours, we should use
it,” he said.

With the
development, Karpowership will take approximately 50 per cent of the volume of
the take-or-pay Sankofa gas for power generation over the remaining period of
the Power Purchase Agreement (PPA).

Specifically, the
switch of the Karpowership to natural gas would save electricity users an
amount of 170.5 million dollars per year, and a projected amount of 1.2 billion
dollars over the remaining term of the Contract, by way of reduced electricity
charges to consumers.

Noting further the
gains to be made by the arrangement, the President said using gas as the
primary source of power generation would post significant returns for the
country over the next decade.

Moreover, the use of
gas, he noted, would bring down the cost of electricity and, thus, provide a
secure and cheaper source of powering the economic and industrial growth of the
country.

GNA

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