West African Gas pipe line
Ghana should expect her first gas from the West Africa Gas Limited (WAGL) LNG terminal currently under construction in Tema by July next year, Ole Agerndal, Project Director, has stated.
According to Argerndal, this was in keeping with WAGL’s decision to fast-track the construction process in order to supply the much-needed gas to power thermal plants lying idle in Tema.
The project, which involves the construction of an intake station at Tema to receive gas from a Floating Storage and Regasification Unit (FSRU), would also see the extension of the breakwater at the Tema Port by at least 300metres, the laying of an 8km pipeline from the Tema jetty to the metering station and dredging activities, among others.
Parliament recently approved a Gas Sales Agreement between government and WAGL to supply gas to power thermal plants in the Tema energy enclave.
At a stakeholders’ meeting in Accra recently, Agerndal said an FSRU had already been acquired and was currently anchored at the Tema Port, adding that there was also an agreement with BP to supply raw gas.
He said although the FSRU had the capacity to produce up to 750mmscuf/day of gas, it would start supplying 180mmscuf/day so that as demand for it increased, supply would be increased.
Additionally, the project director said even though there was currently no pipeline infrastructure to facilitate gas supplies beyond Tema, the WAGL project could have a domino effect and warrant the construction of similar pipelines to all parts of the country that needed gas in large quantities.
He added that the WAGL model simply required the Government of Ghana (GoG) to establish a Letter of Credit as security for the project infrastructure stage.
“The intention is not to cash it but to be security, albeit with the said amount being insufficient to cover the risk.”
“Because the model WAGL does not require a single penny from the Government until the delivery of first gas, this is the premise of the security requested.
This is to, amongst others, secure all the infrastructure work which is to be amortised over the life of the project.
“Furthermore, the project has not requested any equity or cash outlay from the GoG unlike other proposals.”
Finally, he said no securitization of the FSRU was required by the project.
By Samuel Boadi