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Italian firm in talks with govt to set up gas plant

  • SOURCE: | qwesa2big
  • gaslandAn Italian oil firm has commenced talks with the government to set up a gas processing plant with the capacity to produce 170 million standard cubic feet (SCF) of gas every day.

    The company, ENI, is currently working on the plan of development with the Ministry of Energy and Petroleum to fine-tune the details of the project.

    The estimated $6-billion plant will be sited at Sanzule in the Ellembele District in the Western Region.

    The Minister of Energy and Petroleum, Mr Emmanuel Armah-Kofi Buah, made this known in an interview with the Daily Graphic in Takoradi.

    He said Ghana’s daily output of gas to power its thermal units would, in the shortest possible time, reach an estimated volume of more than 300 million SCF daily from the country’s reserve of more than five trillion SCF.

    According to him, the volume would also come with other derivatives, such as liquefied petroleum gas (LPG) for domestic use and export.

    Jubilee Gas

    The commencement of flow of gas from the Jubilee Fields would see more than 120 million SCF of gas daily, which will be followed by an additional 50 million SCF, he said.

    The minister said the government attached seriousness to the idea of ensuring a sustainable and reliable source of power for the country to propel its growth and development.

    He said the ministry had always been in touch with the gas task force mandated to commercialise the country’s gas, which from all indications had provided clear optimism for gas to flow to the thermal units.

    Mr Buah said the lead operator of the Jubilee oilfield, Tullow Oil, had confirmed it had locked in a vessel for the tie-in to the FPSO Kwame Nkrumah after ongoing auditing and other issues were completed.

    “From the assurance from the lead operator among the Jubilee partners, the said vessel will arrive in the country in the first week of October to carry out the tie-in. Hopefully, that moves us to the next stage of introducing gas to the plant onshore and further moving forward with other aspects of the project,” he said.


    The current project will have three participating interests, with ENI Ghana Exploration and Production Limited as the lead operator with 47.22 per cent; Vitol Upstream Ghana Limited (VUGL), 37.78 per cent, and the Ghana National Petroleum Corporation (GNPC), 15 per cent with the option for an additional interest.

    In 2009, ENI announced its entry into the country after the acquisition of majority stakes in the Offshore Cape Three Points (OCTP) and Offshore Cape Three Points South (OCTPS) exploration licences.

    ENI’s entry into these licences followed an agreement reached with  VUGL, part of the Vitol Group, to assign a majority interest in both licences, as well as both operatorships, to  ENI.

    Between June and July 2009, the VUGL, in partnership with the GNPC and ENI, drilled the Sankofa-1 well in the OCTP block in a water depth of 850 metres.

    Source: GraphicOnline

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