LNG will be main fuel for power sector - John Jinapor

The Deputy Minister of Energy and Petroleum, John Abdulai Jinapor has hinted that Ghana's energy sector will rely on Liquefied Natural Gas (LNG) to power thermal plants across the country, noting that LNG is relatively cheaper than Light Crude Oil currently being used at the various power generating stations.

Mr. Jinapor who launched the commencement of LNG feasibility study further commended the Millennium Development Authority for dedicating the second compact of the Millennium Challenge Account towards addressing Ghana's inadequate and unreliable power supply, adding that government will ensure the success of the project in its quest to achieve its target of 500MW by 2016.

The Deputy Minister also cited some initiative of MDA which has eased living standards of many Ghanaians, notably a link road in Afram Plains which has made the transportation of people and foodstuffs easier and the renovation of the perishable cargo section at the Kotoka International Airport.

"I'm delighted the second compact is devoted solely to the energy sector; energy is a life wire of our economy, without a robust resilient energy sector, industry cannot function and if that happens, you can't create jobs to cater for the unemployment situation. This intervention by the United States through MDA couldn't have come at a better time," he stated.

According to him, there was the need for government to look for alternate sources of fuel due to uncertainties in gas supply from the West African Gas Pipeline Project, adding that choices before government are stark; whether to wait and hope for sufficient natural gas to come on-stream in Ghana from Nigeria or initiate the Ghana Gas Project to power the country's thermal plants?

Ing. Kirk Koffi, CEO of the Volta River Authority on his part emphasized the need for the country look elsewhere for alternative sources of fuel, saying that the country's current reliance on crude oil is not sustainable for an emerging economy like Ghana whiles lauding the US Government for initiating the African Power Initiative (API).

Ghana was selected as eligible to develop a second Compact in January, 2011, targeted towards addressing challenges in the energy sector.

The LNG Project is positioned to provide additional, adequate and secure natural gas and address Ghana's current to medium-term gas deficit, critical to encouraging and leveraging more private sector participation in additional generation to meet the current power generation gap and the target 5000MW by 2016.

The feasibility study will be conducted in partnership with the Millennium Development Authority, the National LNG Task Force, the Ministry of Energy and Petroleum, Sector Agencies and key stakeholders in Ghana's power sector, including civil society groups.

The study will determine the strategic location and siting of the LNG infrastructure that adequately provides for Ghana's optimum gas requirement for both power and industrial customers.