Ghana National Gas Company (GNGC) and The Consortium on Friday, 3rd February, 2023 signed a project Implementation agreement between the two entities for the “Train 2 Project” Processing Plant (GPP2).
Ghana National Gas Company (GNGC) is the nation’s premiere mid-stream gas business company that owns and operates infrastructure required for the gathering, transporting and marketing of natural gas resources in Ghana and internationally.
In a welcome address on behalf of Management and Staff of Ghana Gas, Ernest Kofi Owusu -Bempah Bonsu, Head of Corporate Communications noted that this is Implementation Agreement signing marks a
historic milestone in the history of this country.
“We are by this agreement, increasing the country’s Gas stock and its economic value by improving the country’s energy supply with the potential of totally eradicating the perennial power outages and its related negative impact on the Ghanaian economy going forward,” he emphasised.
Mr. Owusu-Bempah did recall that, Train 1 brought about indigenisation and creation of jobs for the entire youth in the country and he believes Train 2 would improve and bring huge economic benefits to our nation.
Project Objectives
To construct a train 2 of the Gas Processing Plant (GPP) with a nominal capacity of
150 MMscfd, expandable to 300 MMscfd, to process incremental raw gas volumes
from Greater Jubilee and Ten fields.
Project Description
As part of its strategic development plans, Ghana Gas has commenced the process
of adding a second gas processing train with total nominal capacity of 150MMscfd, expandable to 300 MMscfd. This increases the national 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 stabilized condensate components from the Jubilee and Ten fields. The lean gas containing methane and ethane shall be tied-in to the lean gas export from existing GPP Train 1, and delivered into the onshore export pipeline.
The pure components of propane and butane shall be stored in their new respective storage tanks.
Ghana Gas will also consider the construction of a new offshore gas export
pipeline should the need arise.
Scope of Project
The project shall include:
Construction of a 150 MMscfd capacity processing plant, expandable to 300 MMscfd, Construction of storage facility, Additional compressor package at Atuabo Mainline Compressor Station (AMCS).and Provision of utilities and liquid waste treatment system.
Location
It is located to the west of existing GPP Train 1 which is located at Atuabo in the
Ellembelle District of the Western Region.
Dr. Hilton John Michell, a representative of the Consortium delivering a speech at the signing ceremony, disclosed that the agreement is a landmark project for his outfit and Ghana Gas “we look forward to working with yourself in making it successful,” he assured.
“We believe it’s a perfect fit with Ghana Gas in making it successful and we look forward to bringing our efforts and energy in this regard,” he stressed.
“We believe that the resources and expertise we have put together should make this project be completed on time and in the most cost effective manner,” Dr. Michell added.
“We expect this to create approximately 1500 jobs directly and indirectly in the Atuabo enclave we expect that this would help achieve the desired results of increasing labour and improving labour efficiency in the area.
In a keynote address, Dr. Benjamin Asante, the Chief Executive Officer (CEO) of Ghana National Gas Company, indicated that his outfit is currently extracting about 40% -50%
of the inherent liquids in the raw gas supplied to Ghana Gas by its upstream partners include Jubilee , Tullow Oil, Kosmos Energy etc.
Dr. Asante also disclose that when this second Train comes on, we would certainly have to stop the import of LPG, hence saving a significant amount of foreign exchange.
“With the Train 2, we would now have the capability of extracting more liquids from the raw Gas stream that is coming to us,” Dr. Asante emphasised. “We are determined to get this project onstream within 24 months,” he assured.
With this technology, Dr. Asante mentioned that, Ghana Gas intend to double the liquids output that it is currently bringing out onstream. “we are doubling the amount of LPG condensates and pentanes,” he said.
The CEO reiterated government’s plan of
building rail lines across the country and said; typically, these trains internal combustible engines run on diesel and with the installation of the GPP2 and the consequence production of more gas, we intend to covert some of the LPG to its compressed form thus Compressed Natural Gas (CNG) to drive this rail cars.
For his part, Andrew Egyapa Mercer, Deputy Minister for Energy speaking at the event on behalf of the substantive minister, stated that the gas associated with Ghana’s oil finds has proven to be useful alternative feedstock for the country’s power generation system and industrial sector, which are previously relied almost entirely on diesel oil as feedstock for thermal power generation.
Furthermore, Mr. Mercer emphasised that bulk of imported and indigenous gas is utilised by the electricity generation system, with only around 13% use for non power activities.
Again the Deputy Energy Minister said Ghana’s Gas resources therefore plays a crucial role in government’s effort to provide affordable power supply to drive the social and economic of our country.
He seized the opportunity to assure the parties to the agreement of the government’s commitment to providing all the necessary support to see to the realisation of this project.
“Particularly in the context of an ongoing global conversation on energy transition, there is no doubt that our natural gas resources will become key in our energy transition goals,” he added.
In attendance at the short ceremony were joint partners, the likes of Jonmoore, Phoenix Park as well as other stakeholders
By Kingsley Asiedu
ghanavoice 