Co-lead
developers General Electric and Endeavor Energy and partners Eranove
and Sage Petroleum haveagreed a supply term sheet with Shell and entered
into exclusive SPA negotiations regarding a long-term supply agreement
for liquefied natural gas (LNG) for the Ghana 1000 project.
The
Ghana 1000 project is an integrated gas-to-power project that will
consist of 1,300 MW to be delivered in two phases, a floating storage
and regasification unit (FSRU) and related infrastructure necessary to
import LNG. It will be Sub Saharan Africa’s largest power park andwill
generate reliable power for Ghana as well as help lower the cost of
power for the country by up to 35 percent when compared to power
generated from light crude oil.
The first phase of the Ghana 1000 project is expected to be completed in late 2016 and will add 125MW to the grid. This will increase to 750MW by 2018 and 1300MW within five years.
“We are delighted to have reached agreement with Shell on the key parameters of a long-term LNG supply arrangement and have entered into exclusive discussions on a long-term LNG supply for the Ghana 1000 project,” remarked Leslie Nelson, CEO of GE Ghana. “Securing a reliable, flexible and affordable LNG supply arrangement is a critical piece of the puzzle to make this project a reality.”
CEO
of Endeavor Energy Sean Long said the inclusion of Shell will add
another world class player to the already impressive roster of
participants in the Ghana 1000 project. “Shell is the world’s leading
LNG supplier and has demonstrated the capability to offer innovative and
collaborative solutions for the needs of a transitioning power market
such as the one developing in Ghana. Importing LNG offers tremendous
flexibility for Ghana to manage its power fleet. As a lower cost
alternative to light crude oil, LNG can be used not only on a long-term
basis for new power projects, but can be imported on a spot basis to
balance any short-term disruptions from Ghana’s domestic gas production
or from diminished hydro production in years with low rainfall.”
Mr. Nelson also disclosed that Sage Petroleum, a wholly-owned Ghanaian company and is the largest indigenous Oil Trading Company in its country, is the latest entrant to join the Ghana 1000 consortium and will play a key part in its success. ”Sage joining Ghana 1000 fulfillsthe consortium’s commitment to ensure localisation of operations in Ghana.”,
Last month, Endeavor Energy and GE announced the signing of an agreement with Excelerate Energy, a leading provider of floating storage regasification units (FSRU), for the reservation of an FSRU that will provide storage and regasification of liquefied natural gas (LNG) for the Ghana 1000 project.
Source: Ghanaian Chronicle
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