Ghana To Have $1 Billion Gas Plant

Gas-plant1General Electric (GE), a leading power producer, is to invest in a $1 billion gas power plant in the country. Construction works on the gas power plant with the capacity to produce 1000 megawatts of power to be sited in the Western Region, is expected to commence next year.

According to industry players, the plant is the first of its kind to produce 1000 megawatts of power from gas at a single location.

Briefing the media on the project, the Managing Director of GE Western Africa, Leslie Aruna Nelson said the project was meant to help address the country’s power problems.

‘’I am confident the GE Integrated Gas Power Plant initiative will push the cost of power down,’’ he stressed.
He explained that his outfit had already signed a memorandum of understanding with the Ministry of Energy and Petroleum on the project and a power purchase agreement with the government would be signed when the project was completed.

Mr. Nelson said the power which would be generated would be sold to government to augment the country’s power supply.
He explained that the project would be executed in four phases over a period of seven years.

‘’It is envisaged the first   power of between 240 and 360 megawatts will flow in 2016,’’ the Managing Director said.
The plant, he said, would be operated on a G-Technology, which is currently being used in Africa.
Mr. Nelson explained that the G-Technology used less natural gas and was the best ‘’to go,’’ and for Africa considering the rising cost of crude oil.

He said the project would involve the construction of offshore Floating, Storage, Regasification Unit (FSRU) to tap gas from the Jubilee Oil Fields and an on-shore plant to process the gas into power.
The Managing Director said pre-feasibility studies and site assessment on the project had been completed.
‘’We are putting together the most dynamic consortium of companies in the infrastructure sector for the project,’’ Mr Nelson said.
Quizzed about how GE would fund the project, Mr the Managing Director said the project would be built and financed by the private sector.

He said some investor had expressed commitment to invest in the project, saying “GE is also considering debt and equity financing options”. He said his outfit was working closely with the Millennium Challenge Corporation to help Ghana address her power problems.  By Kingsley Asare

By Kingsley Asare

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