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Business News of Tuesday, 16 April 2019

Source: citinewsroom.com

Prepare for Atuabo Gas plant CDB loan repayment – Edward Bawa to goverment

The Parliamentary Select Committee on Mines and Energy has commended the Ghana Gas company for undertaking an expansion exercise to enable it process more gas by 2024 for both power generation plants and private businesses.

The expansion plan has already resulted in the supply of 5.7 million standard cubic feet of gas per day to two companies in the Ashiem Free-Zones enclave in the Shama district.

Members of the Committee made the commendation when they visited the Atuabo gas processing plant.

A Member of the Committee, Edward Bawa who agrees with the expansion project, however, urged government to begin to make provision for repayment of the nearly one-billion CDB loan secured to build the plant before payment kicks-in.

“Basically, if Ghana Gas would have to expand, then Central government would have to take a decision as to how they are going to do that. Ghana Gas must also realize that their operations must also service the nearly one-billion CDB loan that was taken to build the Atuabo plant. This is supposed to be a self-sustaining project to pay that loan through its operations. So if government is so minded that this is a critical thing to do, then they must come in.”

Parliament is on recess, but the Committee on Mines and Energy which has oversight responsibilities on the operations of Ghana Gas decided to visit the Atuabo Gas Processing plant to update itself on the operational state of the plant.

Although the committee expressed disappointment that the Chief Executive of Ghana Gas was not present to answer their questions, the General Manager of Ghana Gas Operations, Ing. Robert Lartey who took the committee members on a tour of the facility said the company has chalked some successes despite its humble start.

“We have laid a very good foundation for any industry that is interested in doing business with Ghana Gas to easily offtake reliable supply of Gas at any time. As we are speaking currently, we have a gas pipeline from Abaodze to a free-zone enclave at Ashiem in the Shama District called Wanka Ceramics which is taking lean gas from us. We also have Twyford that is also taking gas. At the Prestea corridor, we are undertaking a massive infrastructural expansion activity over there and hopefully by June this year we should have another private company that will be ready take gas for power generation.”

Engineer Lartey told the committee that Ghana Gas is doing all that in preparation to receive and process more gas from the Aker project by 2024.

“We are looking forward to expansion activity work on the Gas processing plant at Atuabo from the existing capacity of 150 to 220 million standard cubic feet of gas per day,” he added.

The Deputy Chairman of the Mines and Energy Committee, George Mireku Duker and a Ranking Member of the Committee, Adams Mutawakilu while expressing satisfaction with Ghana gas work progress and expansion plan, assured of its support.

On operational Health and Safety, Ghana Gas says it has achieved 16 million man-hours operational time without any fatality or accident and set to continue in this direction to guarantee regular supply of gas to power private businesses and generation of electricity.