Ghana Gas to decide on $500 million gas pipeline early next year, CEO says

Ghana Gas, a state-owned company, will announce its final decision on a $500 million gas pipeline project by early 2027, CEO Judith Adjobah Blay announced at the Gastech conference. The 278-kilometre pipeline would transport gas from the company's processing plant in the west to industries in the southeast, aiming to meet growing industrial demand and reduce reliance on the shared West African pipeline.

Blay stated the pipeline's timeline as the final quarter of 2027, as the company seeks financing for the project. The pipeline's construction has been under consideration for nearly a decade, driven by Ghana's need for cheaper and more reliable gas supplies to power industries in the Tema industrial zone. The company expects to receive more gas from the Eni-operated offshore Sankofa project, which is set to increase its production to 350 mmscfd by 2028, up from the current 280 mmscfd.

Currently, Ghana Gas processes approximately 130 mmscfd of associated gas from the Tullow-operated Jubilee and TEN oil fields, with an additional 50 mmscfd available once a gas processing plant receives legislative approval. The government would hold a 30% stake in the processing plant, while private firms would fund the remaining portion.

Ghana's gas consumption is projected to rise to 715 mmscfd by 2030, up from 502 mmscfd this year, with the country currently importing 70 mmscfd of lean gas from Nigeria. Blay emphasized that gas would primarily be used for power production to reduce the need for burning costlier fuels.