US$150 million power plant and gas supply agreement approved

23 December 2016

US$150 million power plant and gas supply agreement approved

Government’s desire to put an end to the country’s energy crisis has seen it enter into an agreement with the West African Gas Limited (WAGL), to build a new US$150 million, 180 million cubic square feet of gas plant at Tema.

The West African Gas Limited (WAGL), a subsidiary of Nigerian National Petroleum Corporation (NNPC), is expected to build a 120 megawatts plant which will later be expended to 500 megawatts.

The gas plant, according to the WAGL, when completed, will improve gas supply to increase electricity production in Tema and its environs, to help end the protracted power crisis.

In an interview with the B&FT, the Project Director for the Tema Gas Plant, at the West African Gas Limited, Ole Agerndal, expressed hope that the project, beyond providing gas for other power plants within the Tema enclave, will create employment to unemployed youth.

“It is important that we look at job creation and I will say, 100 people will initially and directly be employed to do the operation of the terminal. Then, there will be services for the terminal for instance; we will need the catering, cleaning and other stuff because we have the maintenance of the terminal. So, for me, this is very important to me because it will create jobs.

There is also going to be a new technology to be used for the project in Ghana and it’s a first country in West Africa,” he stated.

Mr. Agerndal explained that the project also entails the leasing of Floating Storage and Regasification Units (FSRU), as well as the dredging and extension of the breakwater at the Tema Port by at least 300 meters.

“Other components of the project include a general upgrade and enhancement of the Ports and Harbour, the laying of an 8km pipeline from the Tema jetty all the way to a metering station which would also be built, and also the construction of a 320-meter length jetty, among other auxiliary works.”

According to the project director, they will also provide about 180mmcf at full capacity and this will see the supply of gas to plants like Asogli and other power plants in Tema, which is expected to improve power situation in the country.

“With government running on a tight string budget, the WAGL project offers a big relief to the nation as the entirety of the project is financed upfront by the WAGL with the project cost being amortized over the 10-year lifespan,” he said.

When completed, the WAGL project will help significantly shore up Ghana’s energy production capacity, as it would bring much-needed Liquefied Natural Gas (LNG) to the Tema power enclave, and bring a long lasting solution to the problem of fuel supply for stranded power plants at the enclave.

Source: Business and Financial Times