Ghana Gas seals deal with Chinese multinational company

The Ghana National Gas Company (Ghana Gas) has signed a project implementation contract with the Chinese multinational oil fields service conglomerate known as the Yantai Jereh group.

The project agreement is for the construction of an onshore 278 kilometer natural Gas pipeline infrastructure from the Takoradi Aboadze enclave to the power enclaves of Tema Greater Accra.

The recent execution of the agreement which represents a revival of a project which was initially conceived last year enabled the immediate commencement of site work such as topographical/ geotechnical site surveys and Front end engineering designs (FEED) which are already underway, as well as on site civil construction activities which will commence within the next ten days.

The financial structure of the project includes an innovative 15 year Build operate and transfer (BOT) model where by the Yantai Jereh group along with their investment partners will fully pre-finance all construction activities related to the project with absolutely no upfront cost being born by the Ghanaian government.

The entire investment made by the Chinese conglomerate will be recouped by charging transportation fees based on volumes of gas being moved through the pipeline over a period of 15 years after which ownership of the entire infrastructure will be transferred to the Ghanaian government completely free of any recurring charges or financial encumbrances.

The proposed gas transportation charge of approximately $1.56USD per MMBtu (A standard unit of measurement used to denote the amount of heat energy in fuels and the ability of appliances) is a fraction of the $4.05 USD per MMBtu historically charged by the offshore West African Pipeline Company (WAPCO) for similar natural gas transportation services. Other advantages of the onshore pipeline include the fact that it will enable the secure transportation of natural gas energy resources generated from oil fields located in the Western region to the East of the country whilst traversing multiple regions along the coast line of Ghana.

Multiple regional natural gas distribution stations will be constructed between the two major load centers of Takoradi and Greater Accra with stations being located in Takoradi, Cape Coast, Winneba, Nsawam, and Tema earmarked for phase one as well as a potential station in the Volta region in phase two of the project,these stations will enable manufactures wishing to construct factories to connect directly to the infrastructure thus receiving cost effective natural gas to power their industrial operations.

The project marks a momentous milestone for the newly elected NPP government who has pledged massive infrastructure development and industrialization initiatives such as “one district, one factory” to spur economic growth.

Yantai Jereh’s Ghana based Senior Vice President for West Africa, Gao Yong, who will take responsibility for the implementation of the project went on record to say “This project represents a massive opportunity of growth for both Ghana and the Yantai Jereh group, we have been highly impressed with the new administration and their ability to get things done quickly and professionally”.


Source: Matilda Attram

The Republic News Online

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