Government’s desire to stabilize Ghana’s gas supply to enhance electricity production has received a major boost as the West African Gas Limited, a subsidiary of the Nigerian National Petroleum Corporation builds a 180million square cubic feet of gas plant at Tema.
The project is expected to supply thermal plants in the Tema Power enclave with reliable gas supply for the generation of electricity. Speaking to Citi Business News, the Project Director of the Tema Gas Plant, Ole Agerndal was hopeful the project will revamp idle plants in the Tema power enclave which have been denied gas for production.
“This project will provide about 180mmcf at full capacity and this will give plants like Asogli and other power plants in Tema reliable gas. We believe this will improve electricity in the country,” he assured.
Mr. Agerndal explained that the project 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 300metres.
“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 the construction of a 320m length jetty, among other auxiliary works,”he said.
Mr. Agerndal disclosed that the FSRU is docked at a site suggested and proffered by the Ghana Ports and Harbours Authority after series of meetings and deliberation by all stakeholders in this project.
He stated that the initiative will be the first in the sub region, bringing succour and respite to thermal plants in the Tema enclave. He was optimistic a successful implementation of the project will usher in a new era in the Energy sector, changing the entire Energy landscape 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.
The project would be managed by Messer’s Hemla, a firm with vast experience in such projects having recently completed a similar project in a more congested port in Lithuania.
When completed, the WAGL gas project will help significantly in shoring up Ghana’s energy production capacity as it would bring much-needed Liquefied Natural Gas (LNG) to the Tema power enclave.
It will also bring a final long lasting solution to the problem of fuel supply for stranded power plants at the enclave making the dream of Tema being a Power hub for the sub region.