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$2.5 billion needed for additional gas infrastructure

  • SOURCE: | qwesa2big
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    Ghana needs $2.5 billion to support additional infrastructural development to become a fully fledged gas economy, the Director of Special Services at the Petroleum Commission, Dr Kweku Boateng, has said.

    Aside from the thermal power generating units using the natural gas, and liquefied petroleum gas (LPG) for homes, he said, there was the need to install adequate infrastructure to create demand and attract investment.

    Mr Boateng was speaking at a media training in Takoradi organised by Kosmos Energy for selected journalists from the Western and Greater Accra regions.

    The training was to equip the media with information to understand the oil and gas industry to enrich their reports on the industry.

    The participants were taken through an overview of the industry, progress made by Ghana Gas in creating a gas economy, as well as the prospects of gas for the economy.

    Huge prospects

    Mr Boateng said although the gas industry held huge prospects, in the interim the country lacked the necessary infrastructure for distribution to demand points to ensure the full benefit of the resource.

    “For instance, there is the need to extend gas to industries across the country and create other middlemen who will handle the needs of small businesses and distribution modules for new residential facilities and demand in rural areas,” he stated.

    As part of its efforts, he said, the government was working on a Gas Master Plan which would outline the road map for the development of gas infrastructure, as well as policies and rules that would attract and regulate investments, create easy access and expand gas demand.

    A lecturer at the Institute of Oil and Gas at the University of Cape Coast, Dr John Gatsi, said gas could provide financial and environmental benefits by feeding both new and existing power plants and replacing expensive light crude oil.

    Explore ways

    He stressed that the country should not limit gas to power generation and domestic use but also explore ways of producing other bi-products such as fertiliser, which could significantly help reduce the subsidies currently offered farmers.

    “The demand point for the gas is limited, which is likely to affect pricing, marketing and investment,” he said.

    Dr Gatsi said a company such as ENI agreed to sink more than $7 billion in the development of its Offshore Cape Three Points (OCTP) because the country expressed readiness to take the gas.

    “There should, therefore, be demand points created to make the resource beneficial to the socio-economic well-being and convenience of all,” he added.

    The Communications Manager of Kosmos Energy, Ms Ruth Adashie, said her outfit was ready to help develop the skills of journalists in oil and gas reporting through similar projects.


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