Sources within the Ghana National Petroleum Corporation (GNPC) have confirmed, exclusively to Citi Business News, that the company\u2019s board has approved the awarding of a long term Liquefied Natural Gas (\u201cLNG\u201d) supply contract to Gazprom, the world\u2019s largest producer of gas.<\/p>\n
The long term supply contract is expected to significantly increase the country\u2019s energy security, providing Ghana with 250 MMscf\/d of competitively priced gas. The contract will be with Gazprom\u2019s marketing and trading group, headquartered in London with subsidiaries in the USA, Singapore, France, UK and Switzerland.<\/p>\n
The contract volumes are sufficient to satisfy more than 1000MW of thermal generating capacity, this coupled with Gazproms experience in large scale gas to power, will go a significant step towards permanently removing the scourge of Dumsor.<\/p>\n
It will also position Ghana as an Energy hub facilitating the supply of gas from Ghana to neighbouring countries, creating significant opportunities for employment and enterprise.<\/p>\n
The entry into Ghana of a super major gas company will undoubtedly transform the energy sector bringing access to gas related finance and expertise on a world class level. Our research suggests that the deal struck by GNPC and the Ministry of Energy will be underwritten by Gazprom\u2019s large balance sheet with no capital required from government.<\/p>\n
Gazprom is the world\u2019s largest supplier of gas and owner of gas related infrastructure.It operates in all parts of the \u201cgas chain\u201d from exploration and production, petrochemicals through to transportation, power production and marketing of Liquefied Natural Gas to customers.<\/p>\n
The company\u2019s revenues in\u00a02016 were $100bn<\/strong>, more than double Ghana\u2019s GDP. It is the largest supplier of gas to Western Europe and controls more than 200 billion barrels of energy or\u00a017% of the worlds total overall gas resources.\u00a0<\/strong>Its portfolio of global assets will allow it to guarantee long term reliable supply for Ghanaians.<\/p>\n The company is a leader in LNG production, with access to more than\u00a050 million metric tonnes<\/strong>\u00a0of LNG.\u00a0 Its long term supply contract with Ghana will be for\u00a01.7 million<\/strong>\u00a0metric tonnes (250 MMscf\/d) and will be added to existing long term sales to\u00a0Japan, Korea, China, India, Taiwan, the UK, the USA<\/strong>, Kuwait, the United Arab Emirates, Mexico among others.<\/p>\n Shipping accounts for up to 15-20% of the total LNG gas price.<\/p>\n Citi Business News researchers have been told the supplies to Ghana are likely to be delivered from Ghana\u2019s neighbour Cameroon, where Gazprom has exclusive rights to the gas produced from the SanagaSud and Ebome fields. The location of the resources in close proximity to Ghana will help to guarantee low prices and increase security of supply.<\/p>\n Ghana\u2019s interest in gas is also fuelled by the country\u2019s desire to rid itself of the problems associated with Dumsor and inefficient power generation. Gazprom\u2019s position as the world\u2019s largest producer of gas has allowed it to develop significant expertise in power generation.<\/p>\n As of 2016 it was also the world largest generator of thermal energy owning more than\u00a038,000 GW of power generating capacity<\/strong>. Ghana\u2019s overall thermal generating capacity is close to 3500 MW.Gazprom\u2019s strategy in Russia and other markets has been to utilise its\u00a0low cost of gas production to deliver low priced and reliable electricity to both industrial and retail users.<\/strong><\/p>\n In 2016 the company spent more than $2bn on increasing generating capacity in its global portfolio, its access to capital and technological expertise\u00a0(the company employs 15,000 engineers<\/strong>) allows it to quickly deliver large scale projects.<\/p>\n Citi Business News understands that Gazprom\u2019s power experts have already visited Ghana and have begun negotiations with Ghana\u2019s state agencies regarding implementing a large power project to compliment the arrival of LNG.<\/p>\n Ghana\u2019s initial foray into LNG was marked by transactions with entities with little or no track record.<\/p>\n The decision to partner with a global leader in gas is testament to the government\u2019s ability to attract, to Ghana,high quality international investment and technical competence.<\/p>\n Gazprom\u2019s reliable sources of supply and experience in developing gas to power allow Ghanaians to look forward to a future without Dumsor.<\/p>\n –<\/p>\n By: citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" Sources within the Ghana National Petroleum Corporation (GNPC) have confirmed, exclusively to Citi Business News, that the company\u2019s board has approved the awarding of a long term Liquefied Natural Gas (\u201cLNG\u201d) supply contract to Gazprom, the world\u2019s largest producer of gas. The long term supply contract is expected to significantly increase the country\u2019s energy security, […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,11],"tags":[],"yoast_head":"\n