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Gas shortfall from Nigeria forces Ghana to seal new supply deal with E’Guinea


The Government of Ghana weekend, signed a Heads of State Agreement with Equatorial Guinea for the supply of 150 million to 200 million standard cubic feet of Liquefied Natural Gas (LNG) per day.

The new deal was sealed during President Nana Addo Dankwa Akufo-Addo’s three-day official visit to that country. The move forms part of measures by government to ensure stable power supply and to guarantee Ghana’s energy security.

Before now, Ghana had been relying on Nigeria for the supply of gas from the Nigerian Gas Company (N-Gas) transmitted through the West Africa Gas Pipeline for some time with some supply hitches.

The new deal with Equatorial Guinea stemmed from observed supply hiccups in getting correct supplies from Nigeria as out of the 120 million standard cubic feet of gas per day agreed with N-gas on a daily basis, Ghana receives only 30 million standard cubic feet of gas per day and the development is drawing back the nation’s power generation ability.

Details from the Ghana News Agency (GNA) showed that the understanding was signed by Ghana’s Minister of Energy, Mr Boakye Agyarko, and Mr Gabriel Mbaga Obiang Lima, Minister of Mines, Industry, and Energy of Equatorial Guinea, and witnessed by President Akufo-Addo and President Teodoro Obiang Nguema Mbasogo.

In his explanation, Agyarko recalled that even though there had been similar agreements with the country before now, “This time, we have been given the marching orders by both Presidents to make sure that by the end of 2017 the agreements (for the supply of LNG) come live. The significance of this gas supply is for the stable state of power generation in our country”.

While describing the new deal as “good news,”, the Energy minister averred that “Ghana would begin to receive LNG supplies that can be stored for 21 days and used accordingly to further improve the country’s power situation”.

“Properly delivered, this will allow Asogli, for example, to expand its power production from 120 MW and scale up all the way to 580 MW. This will, to a very large extent, stabilise further the electricity generation, transmission and distribution that we have,” the Energy Minister said.

“At the conclusion of the arrangement, it is our faithful expectation that gas, as a feedstock instead of crude oil, will be cheaper in terms of power production. This could mean that once the cost of producing electricity comes down, we will be in a further position to lower the user tariffs that our citizens pay for electricity.

“We are glad that under the President’s leadership and direction, we have been able to come thus far. The nation will begin to benefit from what has happened over this trip,” Agyarko said.

Business Hilights recalls that President Akufo-Addo during his visit to Abuja recently asked for more gas supplies.

Besides, Ghana recently signed electricity supply agreement with Cote D’ Ivore relying on gas supplies from abroad.