Ghana to build second gas processing plant at a cost of $700m

A second Gas Processing Plant (GPP Train 2) estimated to cost $700 million is expected to be completed within 24 months.

Ghana National Gas Company (GNGC) signed a Project Implementation Agreement with its joint venture partners for the plant to be sited at Atuabo in the Ellembele District of the Western Region.

When completed, it will generate 1,500 direct and indirect jobs within the Atuabo power enclave.

Dr Benjamin K. D. Asante, Chief Executive Officer (CEO) of GNGC, signed for Ghana Gas, while Dr Hilton John Mitchell, a representative of the Consortium for the partners.

The consortium comprises Integrated Logistics Bureau Limited, Jonmoore International, Phoenix Park Limited and African Finance Corporation.

The construction of a second train gas processing plant with a nominal capacity of 150 million standard cubic feet per day (MMscfd) will process incremental raw gas volumes from the Greater Jubilee and TEN fields.

The new gas processing facility forms part of GNGC’s strategic development plan and expected to increase the national gas processing capacity to 450m Mscfd.

It will process raw gas with natural gas liquids (NGLs) being fractionated into pure components like propane, butane, pentane and stabilised condensate components from the Jubilee and TEN Fields.

The lean gas, containing methane and ethane, shall be tied-in into the lean gas export from the existing GPP Train 1 and delivered into the onshore export pipes.

Some of the components of the GPP Train 2 are the construction of a 150 MMscfd capacity processing plant, expandable to 300 MMscfd, a storage facility, an additional compressor package at Atuabo Mainline Compressor Station and provision of utilities and liquid waste treatment system.

Board Chairman of Ghana Gas, Mr Kennedy Ohene Agyapong, said the project, upon completion, will enhance the operations of the GNGC and boost the utilisation of the country’s gas resources for the Government’s industrialisation agenda.

He added that the facility will play a critical role in Ghana’s energy transition objectives of using renewable energy sources for industrial purposes to reduce global carbon emissions.

On his part, Dr Asante, explained that the project will enable Ghana Gas to become a fully integrated gas services company and reliably supply gas and gas derivatives in Ghana and to the  West African Sub-region.

Also, he said the project will further fulfill the Company’s vision of supplying gas in a cost-effective and environmentally friendly manner.

He explained that the new plant, upon coming on stream will improve the output of liquids processed from natural gas to 80%, compared to the existing facility, which produced between 40 and 50% of gas liquids.

Dr Asante is confident the plant will help the nation to generate more megawatts of electricity and ultimately resolve the perennial power outages (dumsor) experienced in Ghana.

The by-products from the processed gas can be used to manufacture fertilizer, which will boost the agriculture industry and ultimately reduce the country’s fertilizer import.

Deputy Energy Minister Mr Andrew Egyapa Mercer, sees the project as  a useful additional infrastructure in the country’s power generation system.

Dr Hilton John Mitchell, who spoke on behalf of the joint venture partners, expressed the Consortium’s commitment to work with GNGC to deliver the plant on schedule and in a cost-effective manner.