US firms in talks with Ghana to supply vessels to transport gas onshore from Jubilee oilfields

Two US-based companies are in advanced discussions with the Ghanaian government for the supply of liquid natural gas and liquid natural gas regasification facilities, a US top diplomat has said.

The diplomat did not name the two companies but said they were part of a US Energy Trade Mission that visited Ghana recently.

The vessels, according to the diplomat, are to be used to tap into the gas reserves that are found in Jubilee and then brought onshore in the meantime as Ghana awaits the construction of its first gas plant.

“…there were advanced discussions, for instance, with two US participants with the Ghanaian government for the supply of liquid natural gas and liquid natural gas regasification facilities,” said US Deputy Assistant Secretary for African Affairs William Fitzgerald during a teleconference with journalists February 22, 2012.

According to Mr Fitzgerald, this is important because, while there is a pipeline being built from the Jubilee field to come on shore, “the truth is that’s going to take at least a year or two.”

“So in the meantime, the idea is to use these vessels to be able to tap into the gas reserves that are found in Jubilee and bring them onshore faster and then provide them to the plants that could generate electricity with those,” he said.

The move to bring gas onshore is to enable oil operators such as Tullow to meet the plateau oil production because they are not allowed to flare the gas. At the moment, the Jubilee partners are re-injecting the associated gas into wells which is creating problems for oil production. But they say they can only hold-on to the gas to the end of 2012.

The gas facility which will bring gas from the oilfields is yet to be constructed. It received the green light when Ghanaian lawmakers on February 23, 2012 approved an $850 million loan from the China Development Bank (CDB) to finance the project.

The project has been awarded to Chinese firm Sinopec International by the state-owned Ghana Gas Company Limited (GhanaGas).

“Sinopec will construct and commission the 150 MMSCFD Gas Processing Plant, a 36-­kilometre shallow water offshore pipeline from the FPSO to the Plant, a 120-­kilometre onshore pipeline from the gas processing plant to Aboadze, a 75­kilometre onshore pipeline from Esiama to Prestea, a jetty for the export of natural gas liquids and an operations and control office complex,” GhanaGas said in a statement late November 2011.

By Ekow Quandzie