Wednesday, 6 March 2013

Ghana Gas Company signs MoU with Gasol's AfGen

The state-run Ghana Gas Company Ltd has signed an MoU with Gasol's AfGen subsidiary to provide additional gas supply to Ghana.
 
It is hoped that the agreement will provide a longer-term more secure gas supply to improve Ghana's power generation deficit and prevent the need for electricity rationing. A 28 February statement announcing the move said that AfGen and Ghana Gas proposed to “explore the establishment of various joint venture arrangements for the supply of imported natural gas into Ghana as well as the downstream sale and marketing of gas to power generators and industrial/mineral processing enterprises in Ghana”.
Gasol's CEO, Alan Buxton said, “We are very pleased that Ghana Gas has agreed to explore collaboration with AfGen in a broadly defined partnership, including the importation and supply of non-indigenous gas to customers in Ghana, thereby assisting in bridging the Ghanaian gas deficit for power generation.”
 
Ghana has experienced frequent power cuts in recent months because of the West African Gas Pipeline Company's inability to supply gas through its West African Gas Pipeline (WAGP) which has been out of operation since August 2012 following an accident in the Togolese capital of Lome. Last month, President Mahama said during his State of the Nation address that Ghana's current erratic power supply had been causing him “sleepless nights” and promised to fast track the restoration of the WAGP, due for completion in April 2013.
 
For more news and expert analysis about Ghana, please see Ghana Politics & Security.
 
© 2013 Menas Associates

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