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Ghana to start sub-Sarahan Africa’s first Liquified Natural Gas(LNG)-to-power project


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Ghana is set to open sub-Sarahan Africa’s liquified natural gas-to-power project as it moves to position itself as a hub for the cleaner and cheaper fuel in the region.

Liquified Natural Gas(LNG)-to-power projects have been booming from Asia to Latin America in recent years as they allow nations to switch from dirtier fossil fuels to keep the lights on. For sellers, integrated LNG-to-power provides a guaranteed outlets for the fuel.

Tema Liquified Natural Gas Terminal Company received the floating regasification unit from Jiangnan, China on Wednesday paving the way for the supply of 1.7 million tons of natural gas per year for power generation sometime this quarter, Edmund Agyeman-Duah, project manager at the company, said.

“Ghana can now start to service the rest of the region with fuel that is continuously growing in popularity because of the cost and the significant environmental benefits it provides”. Edmund Agyeman-Duah said.

On a life cycle basis, LNG emits around half the greenhouse gas emissions that coal does when burnt to generate electricity, compared to a typical new coal plant, natural gas emits 50 to 60% less carbon dioxide when combusted in a new efficient natural power plant, according to the International Group of Liquified Natural Gas Importers.

For a country with 30 million people, Ghana’s electricity consumption has grown alongside its economy, but it remains lower than the average per capita consumption of sub-Saharan Africa and far below that of developed countries. 

Tema LNG Terminal is getting its gas under a long-term contract with Royal Dutch Shell Plc. said Agyeman-Duah. State-Owned Ghana National Petroleum Corporation is currently the mandatory off-taker who will receive regasified LNG to fuel plants in the Tema power and industrial enclave.

BY: Deborah Duogan

The company has given Spain’s Reganosa Servicios SL the contract for the operation and maintenance of the unit and associated 6 kilometer (3.7 miles) gas pipeline, it said in a statement. The project was financed with a combination of equity and debt from a consortium of international banks, according to Edmund Agyeman-Duah.

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