Ghana’s energy sector requires $13.2b investment – Energy Ministry

The grand total of investment required for Ghana’s energy sector is $13.2 billion, a document from the Ministry of Energy (MoEn) obtained by ghanabusinessnews.com in October this year shows without giving specific time frames.

These investments are needed in the two key areas of the energy sector – that is the oil and gas industry as well as the power sub-sector, the document indicated.

Already, the country’s vision for the energy sector is to develop a dynamic energy economy that secures a reliable supply of high quality energy services for all sectors of the Ghanaian economy and also become a major exporter of oil and power by 2012 and 2015 respectively, according to the Energy Minister Dr Oteng Adjei.

The oil and gas sector requires a total of $9 billion and the power sector needs $4.2 billion, the document indicated.

Giving the summary of the investment requirement for the oil and gas sector, the document shows that the Petroleum Upstream sub-sector which includes the Jubilee oil fields needs $5 billion; the Petroleum Midstream (Gas Commercialisation) needed $1 billion as well as the Petroleum Downstream (Refining, petroleum transportation, Petrochemicals) requiring $3 billion.

For the Power Sub-sector, it noted that $1 billion is needed to increase capacity of the country’s Power Generation with $700 million needed for the upgrade, expansion and establishment of new bulk supply points in the Power Transmission area.

Power Distribution including expansion, extension, voltage improvement, technical losses reduction project requires $1 billion and the National Electrification Programme involving grid extension, renewable projects; solar PV, wind & mini hydro requiring $1.5 billion investments, the document says.

By Ekow Quandzie