Cabinet approved Gas Master Plan

PROF. IVAN ADDAE-MENSAH  (LEFT BACK TO CAMERA) SHARING SOME THOUGHTS WITH  MR. EMMANUEL ARMAH  KOFI-BUAH

PROF. IVAN ADDAE-MENSAH (LEFT BACK TO CAMERA) SHARING SOME THOUGHTS WITH MR. EMMANUEL ARMAH KOFI-BUAH

Cabinet, last week, approved the Gas Master Plan designed to usher Ghana into the production of indigenous gas, the Minister for Petroleum, Mr. Emmanuel Armah Kofi Buah, has announced.

The Plan, he indicated, was a major boost for the petrochemical industry and would also transform the economy of Ghana, with the Western Region becoming the hub.

Mr. Buah disclosed this on Monday, at the opening of a new Western Regional Office for the Petroleum Commission, located at the Germ Kiss Estates at New Amanful, near Takoradi, off the Takoradi- Elubo   highway.

He said the Gas Master Plan, was intended to guide the nascent gas industry from 2016 to 2040, on the projected gas demand, supply and the infrastructure requirements, hoping that this would be followed by a gas policy and an Act.

“We believe that we are on the right track using gas to power our thermal plants and ultimately create a petrochemical industry all of which to be centred in the Western Region.” the Minister added.

Meanwhile, he said, the Petroleum Exploration and Production Bill had been laid before Parliament.

Tracing some land marks so far in the petroleum sector, he said, the Western Region had become the centre of operations particularly with the Jubilee and TEN projects and the Off Cape Three Point (OCTP)/ENI project.

The OCTP project, he reported, was progressing steadily, with the construction of the Floating Production Storage Offshore (FPSO) facility ongoing in Singapore, while the sod cutting of Onshore Receiving Facility was  a  critical  milestone for the gas development  project.

Oil production from the project, he said, would start in 2017 and peak at about 40,000 barrels per day in   2019 while gas production was expected to start in 2018, with daily production of 170 million cubic feet.

According to Mr. Kofi-Buah, the  gas from the  OCTP project was expected to support 1,000 Megawatts (MW) of domestic  power generation, approximately 40 per cent of the currently installed generation  capacity, stressing “these will transform our economy and have the potential  of making the  petroleum sector the  number  one contributor  to Ghana’s GDP.”

Additionally, he hoped that the work done by the Ghana National Petroleum Corporation (GNPC) in   the   Volta basin would add a new frontier to Ghana’s petroleum exploration efforts as   the corporation was leading seismic data collection in the basin, gifted with significant hydrocarbon reserves.

Mr. Buah said many international oil and service companies, like ENI, Expro, Schlumberger and Halliburton  had relocated their regional  offices to Ghana  while the various infrastructure  and gas related  projects   in the Western  Region being part of the vision  of the  government to become   the  hub  of  petroleum activities  in West  Africa.

He said: “It is  without  doubt that the  projects  including the Atuabo Gas Project, Sanzule Onshore Receiving Facility, Lonrho Oil and Gas Free Port at Atuabo, the Liquid Gas  Export Facility  at Bonyere and Domunli  and  the  Western Corridor Road will transform the Western  Region and ultimately change the lives  of the people  of the region in particular and Ghanaians in  general.”

Mr. Kofi-Buah said that significant  progress had been made  in  ensuring  Ghanaian participation  in the industry,  adding that over 238 indigenous companies had registered with the  Commission to provide various goods and services  in the industry, with  about 64 Ghanaian companies  also forming   joint ventures  with foreign companies  for technology and skill  transfer to Ghanaians, running over $1.2 billion of  contracts.

“Two major Operators- Tullow Oil Ghana and ENI Ghana increased significantly the value contracts awarded to indigenous Ghanaian companies between 2015 and 2016. Tullow increased contract awards to indigenous companies from $162 million (over 50 per cent increase) and ENI has also awarded $750 million contract to Ghanaian companies since the commencement of the OCTP project.” he added.

The Minister, however expressed concern about the persistent encroachment  on the safety zones around the petroleum installation, reporting that in  2015 alone the Commission recorded 595  incursion in  the established zones, thereby  posing serous risks to the fishermen,  the offshore installations and  the  workers.

He therefore, appealed to the Commission and the industry to helps address these challenges.

From Clement Adzei Boye, New Amanful

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