Ghana Signs MoU with WAGPL for Gas Transfer

Ghana’s government has signed a tie-in agreement with the West African Gas Pipeline (WAGP) to transfer gas from the Eni-operated Offshore Cape Three Point (OCTP) fields in the eastern region of the country, to a gas-fired power plant at Tema.  

Under the agreement, the Sanzule terminal will process gas produced by Eni at the Sankofa fields and then flow into a pipeline owned by Ghana Gas at Aboadze which will be tied into WAGP for the final leg of its journey to the Tema plant.  

The processing activities on OCTP are expected to start by the middle of 2018.  

According to ENI, Sankofa Fields will produce 171-210mn ft³/day of non-associated gas; ORF will process 180mn ft³/d and Ghana Gaz is expected initially to deliver 150mn ft³/d to Tema.

A source close to the negotiations revealed that WAGP initially offered a fee of $5/mn Btu although the final price was between $1.3/mn Btu and$1.6/mn Btu.

Ghana will pay $7.5/mn Btu for the OCTP gas so even though some industry experts praised the validity of the agreement which is in line with the government’s objective to end the sporadic power cuts known as Dumsor, they said to Graphic Online that Ghana could have saved a lot if it built its own pipeline from Aboadze to Tema.