Ghana Gas signs US$700m deal for second gas processing plant

The Ghana National Gas Company (GNGC) on Friday signed a Project Implementation Agreement with its joint venture partners to construct a second Gas Processing Plant (GPP Train 2) at an estimated cost of US$700 million.

The gas plant would be sited at Atuabo in the Ellembele District of the Western Region and is expected to be completed within 24 months.

It would generate 1,500 direct and indirect jobs within the Atuabo power enclave.

At the signing ceremony in Accra, Dr Benjamin K. D. Asante, the Chief Executive Officer (CEO) of the GNGC, initialed for the 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 nominal capacity of 150 million standard cubic feet per day (MMscfd), expandable to 300 MMscfd, to process incremental raw gas volumes from the Greater Jubilee and TEN fields.

The project formed part of the GNGC’s strategic development plan and expected to increase the national gas processing capacity to 450 MMscfd.

The new gas processing facility will process raw gas with natural gas liquids (NGLs) being fractionated into pure components like propane, butane, pentane and stabilised condensate components from the Jubilee and TEN Fields.

The lean gas containing methane and ethane shall be tied into the lean gas export from existing GPP Train 1 and delivered into the onshore export pipes.

Some of the components of the GPP Train 2 include the construction of a 150 MMscfd capacity processing plant, expandable to 300 MMscfd, a storage facility, an additional compressor package at Atuabo Mainline Compressor Station and provision of utilities and liquid waste treatment system.

Speaking at the signing ceremony, Mr Kennedy Ohene Agyapong, the Board Chairman of Ghana Gas, said the project, upon completion, would enhance the operations of the GNGC and further boost the utilisation of the country’s gas resources for the Government’s industrialisation agenda.

Mr Agyapong, also Member of Parliament for Assin Central, said the facility would play a critical role to help Ghana achieve her energy transition objectives of using renewable energy sources for industrial purposes and reduce the global carbon emissions.

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

It would further fulfill the Company’s vision of supplying gas in a cost-effective and environmentally friendly manner, he said.

The new plant, upon coming on stream, he said, would improve the output of liquids processed from natural gas to 80 per cent, compared to the existing facility, which produced between 40 and 50 per cent of gas liquids.

Dr Asante added that the plant would help the nation to generate more megawatts of electricity and ultimately resolve the perennial power outages (dumsor) experienced in Ghana.

The by-products from the processed gas, he explained, could be used to manufacture fertilizer, which would boost the agriculture industry and ultimately reduce the country’s fertilizer import.

Mr Egyapa Mercer, a Deputy Minister of Energy, on his part, said the project would be a useful additional infrastructure in the country’s power generation system.

It would also support the government’s efforts in providing an alternative power supply to drive socio-economic development, he added.

Dr Hilton John Mitchell, who spoke on behalf of the joint venture partners, expressed the Consortium’s commitment to work collaboratively with the GNGC to deliver the gas processing plant on schedule and in a cost-effective manner.

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

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