The General Manager in-charge of Operations at Ghana Gas, Mr Robert Kofi Lartey revealed this when the Parliamentary Select Committee on Mines and Energy visited the gas processing plant at Atuabo on Monday. The visit was to help members of the committee get abreast with the operations of the gas processing plant. He indicated that the company takes safety issues seriously and so had set up community liaison officers who were trained periodically on safety related matters as far as the operations of the company were concerned. “This is part of the requirements of the Environmental Protection Agency (EPA) so that the officers would educate the residents in the communities in which the company operate on our safety issues”, he told the members of the select committee,” he said. He indicated that since the company’s pipelines were located offshore, Ghana Gas was collaborating with the Marine Police to educate fishermen on the need to stay away from the installation of the gas processing in the sea. He told the members that Ghana Gas Company was undertaking an expansion exercise to enable it process more gas by 2024 for both power generation plants and private businesses. “We have laid a very good foundation for any industry that is interested in doing business with Ghana Gas to easily off-take reliable supply of Gas at any time. “Currently, we have a gas pipeline from Aboadze to a free-zone enclave at Ashiem in the Shama District called Wanka Ceramics which is taking lean gas from us. We also have Twyford ceremanics that is also taking gas. “At the Prestea corridor, we are undertaking a massive infrastructural expansion activity over there and hopefully by June this year we should have another private company that will be ready take gas for power generation”, he revealed. Vice Chairman of the Select Committee, George Mireku Duker, commended Ghana Gas Company for undertaking an expansion exercise to enable it process more gas by 2024 for both power generation plants and private businesses. A Ranking Member of the Committee, Adams Mutawakilu said he was impressed with the manner in which Ghanaians were able to manage the infrastructure. “This is a clear manifestation that when we are given our own assets, we can manage them. Now Ghanaians are managing Ghana Gas with world class safety records and environment”, he indicated.
No fatality at Ghana Gas since 2011
Seplat and Nigerian Gas Prepare to Boost Output
ANOH Gas Processing Co., which is owned by Seplat and Nigerian Gas Co., will develop, build and operate the plant located in Imo state.
Seplat and Nigerian Gas will provide 60% of the funds as equity, while ANOH will source the balance as debt, Seplat CEO Austin Avuru said in a Bloomberg interview. “Both parties already have each contributed $100 million in equity,” Avuru said. “There will be another equity injection and at the back end of it will be debt.’’
The plant, which will process wet gas from the unitized upstream fields at OML 53 and OML 21, has an initial capacity of 300 Mmcf/d. It’s scheduled to begin production by the last quarter of 2020 and the first supply is targeted in 2021, Avuru said.
ANOH will target local customers and has the capacity to double production “depending on domestic demand and the availability of feeds including third-party gas,” Avuru said. Source: petroleumafrica.com
GNPC to pay US$250m for unused gas
Under the agreement, the government is under an obligation to off-take the gas from the various oil producing fields in the country and failure to do so attracts a penalty. As a result of the country’s failure to put in place the appropriate infrastructure to off-take the gas from these fields, the GNPC has been left with no choice than to cough up US$250 million to settle the country’s obligations in 2019. This was contained in the committee’s report on the 2019 programmes and activities which was presented to the house on April 10. The committee noted that the monthly commitment from the Sankofa-Gye-Nyame field alone was about US$42 million per month. Relocation of Karpowership In a bid to fully utilise the gas from these fields, the GNPC has budgeted an amount of US$31.5 million to relocate the Karpowership power barge from Tema to Aboadze in the Western Region to enable it to make use of about 60 MMScf/d of gas from the Sankofa-Gye-Nyame field. This is also expected to help ensure the full utilisation of indigenous gas resources, while ensuring the barge reaches its capacity. GNPC’s commitment under escrow account The committee was also informed that the GNPC’s commitment to maintaining a minimum amount of US$205 million in a reserve escrow account to cover four and half months of gas payment under the Offshore Cape Three Points (OCTP) gas supply agreement had been reviewed downwards to US$157 million following the recent adjustment in gas prices. While the corporation had made efforts to meet the minimum amount required under the agreement, the committee noted that the off-takers of gas in the downstream had not been able to pay the gas delivered to them, resulting the GNPC having to continuously make annual budgetary allocations to replenish the drawdowns. The committee, therefore, urged the government to step up its efforts in finding lasting solutions to the financing challenges of the energy sector institutions. Financial requirements It was also observed that total revenue of US$1.3 billion was originally expected to be accrued to the GNPC in 2019, while expenditure was projected at US$1.6 billion. The expected revenue included the corporation’s share of crude oil sales and internally generated funds totaling US$609.2 million and gas business of US$748 million, resulting in a gap of US$250.76 million. The committee, however, noted that contrary to the Petroleum Revenue Management Act, 2011 (Act 815), the corporation had stated as part of its incomes, receivables in the amount of US$232.82 million as coming from portions of the petroleum royalties due the state. Though the corporation indicated the consent of the Ministry of Finance in such financing arrangement, the committee found it to be in contravention of the Act and accordingly recommended for its removal. The Minister of Energy in consultation with the corporation accepted the committee’s recommendation and reprioritised the expenditure items, resulting in a new funding gap of US$493.58 million to be financed through borrowing. Corporate Social Responsibility In justifying an allocation of an amount of US$43.05 million for Corporate Social Responsibility (CSR), the corporation explained that Ghana had adopted petroleum local content and local participation policy with an objective of maximising the benefits of oil and gas endowments. The sector is, however, currently dominated by foreign participation in terms of key positions and major contracts, making the realisation of such policy objective impossible. Officials of the GNPC, therefore, explained to the committee that its three-prong concept on CSR was, therefore, geared towards creating a harmonious condition for the development of requisite local human resources for Ghana’s petroleum industry Source: Graphic. com.gh
South Sudan’s Oil Flow Not Impacted By Unrest In Sudan
Amazon to procure 229MW of wind power by 2021
Strong laws, poor implementation characterize African resources sector – Research
Power outages due to unstable power supply from GRIDCo-PDS
Nigeria: TCN implements power transmission project
Energy Sector debts to be paid within 5 years – Government
Head of Delivery Unit at the Office of the Vice President and a member of the Energy Sector Reform Committee Prof Kwaku Appiah-Adu, said the reform will among other things punish officials whose actions will lead to contracts in the sector that affects the country. The reform committee believes the move will help reduce debts in the sector. The energy sector debts which hit about 2.4 billion dollars is one of government’s major challenges as it affects most part of the economy. Although successive governments have defrayed some of the debts, Prof Kwaku Appiah-Adu said: “It’s the rules and regulations that need to be followed and a technocrat or somebody has signed an agreement which really shouldn’t have been signed, because you if look at what we have in place, already we have excess capacity there is no need for us to sign any new agreement, who advised what, were the figures at the time they signed, so all we are saying is that the rules and regulations that guide the signing of such agreements should be looked at vis-à-vis the agreement that has been signed and if anyone has flouted a rule then the laws of the nation have to apply that’s all we are saying we keep it nice and simple then the details will be implemented of course by the law court and any other committees that are put is together to come up with specific recommendations as to what penalties that will be meted out.”
Arker Energy sensitises oil and gas suppliers on procurement processes
Other topics treated were Local Content in Procurement, Compliance in the Arker Energy Procurement Process, Tax, Reimbursement, Cash Refund and Withholding Taxes. Mr Bernard Owusu-Ansah, the Contract Advisor of Arker Energy, entreated the participants, who intend to do business with the company, to abide by all the rules and regulations pertaining to procurement and supplies. He said Arker Energy had transparent and fair procurement processes, which were done electronically to avoid manipulation. Mr Owusu-Ansah said issues such as pricing, local content technology, health and environmental safety were paramount when it came to awarding contracts in Arker Energy. “Once you submit a solid tender you don’t need to know someone in Arker Energy before your contract is approved,” he said. Mr Owusu-Ansah said performance reviews were regularly conducted to ensure the effective execution of contracts. Mr Francis Wajah, an official of the company, who took the participants through Health Safety and Environment in Procurement, said Arker Energy dealt with competent and reliable suppliers as offshore operation was a high-risk project. He said all products and services delivered must meet standards with a good and robust Health Safety and Environment Policy. Mr Edward Owusu-Manu, the Supply Chain Manager, who made a presentation on the history of the company, said established in 2018, Arker Energy was rapidly growing its capabilities and would hire competent people to manage its varied components. He said it conducted business with integrity, respect to culture, dignity and right of individuals everywhere it operated and would comply with all applicable laws and regulations in the country. It has a workforce of 250 out of which 205 are Ghanaians, he said, and hinted that more supplies were needed in Information and Communication Technology, catering and marine logistics. Mr Owusu-Manu said the company was committed to contributing to the enhancement of local industries in Ghana through its supply chain activities. Source:GNA
Mozambique Creates New Oil and Mining Authority
The Inspectorate-General of Mineral Resources and Energy is to have administrative and technical autonomy and focus on five issues: mining inspection, hydrocarbon and fuel, energy, internal audit and rescue.
“We want to prevent illegal extraction, trade and export of oil and mining products,” the spokesperson said.
Over the last couple of years, Mozambique has been focused on hydrocarbon prospecting, following the discovery of large gas and coal reserves.
Senegal: Senelec seeks provision of electrical cables
U.S. To Slap Even More Sanctions On Venezuela To Kill Off Oil Exports To Cuba
