GNPC finances the west to east reverse flow of natural gas
Ghana National Petroleum Corporation (GNPC) has announced completion of the project’s initial phase (Takoradi scope) to reverse-flow gas from the Western Region to the Tema power enclave, which is being financed by the Corporation.
This feat was achieved with support and collaboration from ENI Ghana Exploration and Production Ltd., Vitol Ghana Upstream, Ghana National Gas Company (Ghana Gas) and the West Africa Gas Pipeline Company (WAPCo). Commissioning and performance-testing of the Takoradi scope of the ‘Takoradi–Tema Interconnection Project’ (TTIP) has been successfully carried out.
The successful execution of this scope of the project paves the way for smooth flow of gas from the Western Region to Tema for use by the various gas off-takers in the Tema-Accra power and industrial enclave.
The Tema section of the TTIP, which includes revamping the WAPCo Tema Regulatory and Metering Station (RMS), is ongoing and expected to be complete by the fourth quarter of 2019.
As the National Gas Aggregator, GNPC has played an enabler role, providing the financing and necessary comforts for partners to ensure the project’s successful completion. GNPC engineers also provided end-to-end advice in the design and scoping, as well as monitoring the project’s execution.
Implications for power sector
The project’s successful completion has enormous benefits for the country’s power sector.
The CEO of GNPC, Dr. K. K. Sarpong said: “Ghana Gas’ ability to supply gas for the stable production of electricity means that cost of electricity to the final consumer will now be relatively lower as compared to the use of Heavy Fuel Oil (HFO) or diesel as fuel for electricity generation”. He further stated that the cost of production for local companies, especially in the manufacturing and mining sectors, will reduce significantly to enable them become more competitive. Dr. Sarpong is optimistic that with GNPC’s drive to increase the utilisation of domestic gas, the take-or-pay obligations on the country will be reduced significantly when the power sector pays for the gas.
This project has also doubled the capacity of Ghana Gas to transport GNPC’s gas to feed critical national power generation facilities sited in the Western enclave. Again, gas users in the Accra-Tema region are assured of relatively more reliable gas supply through the TTIP.