Ghana gets alternative gas supply as Parliament approves WAGL project
Ghana’s energy sector has received a major boost following the approval by Parliament for the supply of Gas from the West African Gas Ltd (WAGL), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
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By the approval, WAGL is expected to supply the country with 180mmscuf of gas per day for a period of 10 years.
The WAGL project also entails leasing of Floating Storage and Regasification Units (FSRU), as well as dredging and extension of the breakwater at the Tema Port by at least 300 metres.
Other components of the project include general upgrade and enhancement of the Ports and Harbour, laying of an 8km pipeline from the Tema jetty all the way to a metering station which is to be built and the construction of a 320m length jetty, among other auxiliary works.
Immeasurable benefits
The FSRU is eventually booked to dock at a site suggested and proffered by the Ghana Ports and Harbours Authority after series of meetings and deliberations by all stakeholders in this project.
The initiative will be the first in the sub-region, with critics even agreeing that the benefits to be derived are immeasurable.
Among other outcomes, it would bring succour and respite to thermal plants in the Tema enclave that sit idle, while waiting for gas to power the plants.
It is also envisaged that the successful implementation of the project will usher in a new era in the energy sector and bring about a change in the entire energy landscape in the country.
With the government running on a tight string budget, the WAGL project offers a big relief to the nation since the entirety of the project is being financed upfront by the WAGL. The cost of the project is being amortised over its 10-year lifespan.
Commenting on the parliamentary approval and the financial arrangement of the whole agreement, an official of WAGL said it required the Government of Ghana (GoG) to establish a Letter of Credit as security for the project’s infrastructure stage.
He said security was requested in order to protect all the infrastructural work which was to be amortised over the life of the project.
When completed, the WAGL gas project will help significantly in shoring up Ghana’s energy production capacity, as it would bring the much needed Liquefied Natural Gas (LNG) to the Tema power enclave.
It would also provide a lasting solution to the problem of fuel supply for stranded power plants within the enclave and make the dream of turning Tema into a power hub in the West African sub-region a reality.