$700m Ghana Gas project to fractionate NGLs and improve energy output
Ghana National Gas Company (GNGC) has signed a landmark agreement to construct a second Gas Processing Plant (GPP Train 2) in Atuabo, Western Region, with a cost estimated at $700 million. The facility, which is expected to be completed within 24 months, will generate 1,500 direct and indirect jobs and have a nominal capacity of 150 million standard cubic feet per day (MMscfd), with the ability to expand to 300 MMscfd.
The new gas processing facility will process raw gas with natural gas liquids (NGLs) and fractionate it into pure components such as propane, butane, pentane, and stabilised condensate components from the Jubilee and TEN Fields. The plant will also contain a storage facility, an additional compressor package, and a liquid waste treatment system.
The project is expected to significantly increase the national gas processing capacity to 450 MMscfd and play a critical role in helping Ghana achieve its energy transition objectives by utilizing renewable energy sources for industrial purposes and reducing global carbon emissions. The plant will improve the output of liquids processed from natural gas to 80%, compared to the existing facility, which produced between 40-50% of gas liquids.
Speaking at the signing ceremony, Mr. Kennedy Ohene Agyapong, the Board Chairman of Ghana Gas, said the project would enhance the operations of the GNGC and further boost the utilization of the country’s gas resources for the government’s industrialization agenda. The CEO of Ghana Gas, Dr. Benjamin K. D. Asante, said the project would enable the company to become a fully integrated gas services company and provide reliable supply of gas and gas derivatives in Ghana and the West African sub-region.
The joint venture partners, consisting of the Integrated Logistics Bureau Limited, Jonmoore International, Phoenix Park Limited, and African Finance Corporation, expressed their commitment to work collaboratively with the GNGC to deliver the gas processing plant on schedule and in a cost-effective manner.
In conclusion, the new plant will support the government’s efforts in providing an alternative power supply to drive socio-economic development and reduce the country’s fertilizer import by using the by-products from the processed gas to manufacture fertilizer. This landmark agreement marks a significant step towards Ghana’s energy independence and sustainable development.
