Structured attempt at strengthening gas for the domestic market
Ghana seems focused on significantly expanding national gas production, primarily through the non-associated gas fields of Sakofa and Gye-Nyame in addition to the associated gas of Jubilee and TEN oil fields.
The West African country has estimated gas reserves of between 1.5 Tcf and 1.7 Tcf. According to report on the Offshore Cape Three Points (OCTP), located about 60 km off the west coast of Ghana, the volume of gas expected will be sufficient to supply Ghana’s electrical power stations for at least 15 years.
Gas production is scheduled for 2018, with peak production in 2019.
The Ghanaian government through the project expects that the gas produced will replace the crude and combustible oil currently used in power plants, thus reducing costs, increasing efficiency and curbing climate-altering emissions.
Nigeria with about 186 Tcf of gas reserves have over the years struggled to develop its domestic gas market.
The ministry of petroleum resources in recent times set out plans to enhance gas and other derivatives to ensure they attract forex even as the Nigeria Gas sector holds out significant economic potential to the economy.
In the ranking of world proven natural gas reserves by country, Nigeria is the largest in Africa and the 7th largest globally. Nigeria currently produces an estimated 7 billion scf per day. Regrettable, the country’s usage of Liquefied Petroleum Gas (LPG) in Africa still fall short behind South Africa, Morocco and Ghana.
With the projected expansion in the non-associated gas fields, the government of Ghana sees it as a major contribution to reducing dependence on the unreliable importation of gas via the West African Gas Pipeline (WAPG) and at least partially solving the shortcomings of the national electrical system.
The government is also involved in other projects aimed at expanding generating capacity through a variety of sources, including PV solar power, in order to reduce the shortfalls, improve access to energy and provide support for long-term economic growth.
While the lack of a thriving gas market in Nigeria can be traced to the inadequacy of the existing gas processing, transmission and distribution infrastructure to support the current demand, various opinion abound that this action may slow that process of growth.
It is expected that the managers of the economy must as a matter of urgency streamline the adoption of a national Gas Infrastructure Blueprint that seeks to address the need for rapid deployment of gas infrastructure across the country.
Issues around credible and enforceable gas contracts coupled with a price regime continues to scare away local investors from putting their money into production of gas for local use.
Experts say gas projects will become more profitable if indigenous companies are given access, noting that it will be easier for local companies with proven track records to attract investors to execute projects that can unlock gas for Nigeria.
“LPG can easily be produced here in Nigeria to meet all of Nigeria domestic demand. But that requires investment in LPG plants. This not free of charge and if the government does not make it attractive for local investors to produce LPG, the shortfall will continue”. Experts insist.
KELECHI EWUZIE