Tullow Ghana Limited Withdraws TEN Development Plan, Raises Questions Over GPP2 Project

Tullow Ghana Limited has withdrawn its draft TEN Amended Plan of Development (TAPOD) and Combined Gas Sales Agreement (CGSA) proposal for the Tweneboa, Enyenra, and Ntomme (TEN) field, citing changes in market conditions, inflationary pressures, and revised estimates of gas volumes.

In a letter to Hon. John Abdulai Jinapor, Minister for Energy and Green Transition, dated May 29, 2025, Tullow stated, “While TEN gas volumes are still significant, further studies indicate that these are now smaller and/or riskier to develop.” This development has implications for the planned second gas processing plant, which relies on sufficient gas volumes.

According to Tullow, current estimates point to firm export volumes of 160 million standard cubic feet per day (mmscf/d) from the Jubilee and TEN fields combined. The company emphasized the need for further investment, underpinned by an appropriate commercial framework, including an economic gas price and acceptable payment security.

“We remain committed to the TEN re-development priorities, including extending TEN economic life, maximizing resource recovery, and safeguarding the viability of gas supply to Ghana with an appropriate commercial framework,” the letter reads. Tullow plans to reassess and define future TEN investment, accounting for all factors, and will submit a revised long-term plan in Q3 2025.

The withdrawal of the plan raises questions about the investment needed to develop the TEN field further and potential implications for gas prices in Ghana. Industry experts believe this development poses a significant threat to the realization of the country’s plan to construct a second gas processing plant (GPP2).

According to a source familiar with the gas industry, it will be difficult to justify GPP2 with only a firm export flow of 160 mmscfd from both Jubilee and TEN. With the existing gas processing plant operated by Ghana National Gas Company having a capacity of 150 mmscfd, operational experts believe there won’t be much gas left for the proposed GPP2.

Last month, Minister for Energy and Green Transition John Abdulai Jinapor inaugurated a technical committee to fast-track the processes leading to the establishment of the second gas processing plant. The establishment of the second gas processing plant is expected to save the West African nation around $500 million annually.

Source:https://energynewsafrica.com