In sub-Saharan Africa, liquefied natural gas (LNG) has been identified as a niche area for the region, with discovered resources enough to become commercially viable, according to recent BMI research.
According to the research analyst, Ivory Coast, Ghana and South Africa were identified as the promising regions, Business Day Live reported.
LNG shows promise in Africa
The research report highlighted that due to many countries having limited domestic consumption and infrastructure, integrated LNG-to-power projects would be an anchor for wider demand creation, Business Day Live reported.
“In the face of reduced off-take from traditional buyers” in northeast Asia, sub-Saharan Africa held potential as a new market.
“Government support through pricing and off-take agreements is crucial for long-term gas import growth,” BMI noted.
Ghanaian LNG developments
In 2015, there was significant movement in Ghana around LNG projects.
In March 2015, a consortium of US power generation company Endeavor Energy, GE and partners Ghanaian oil trading company Sage and power producer Eranove entered into negotiations with Shell for a long-term supply agreement for LNG, for the power-generation initiative Ghana 1000 project.
The gas-to-power project will have a generation capacity of 1,300MW with the aim to generate affordable and sustainable power to Ghanaian communities, lowering the cost of power by an estimated 35%.
Ghana 1000 will be delivered in two phases.
According to a statement, the first phase is expected to be completed by the end of 2016 generating 125MW to Ghana’s national electricity grid.
This figure will increase to 750MW by 2018 and cap at 1,300MW within the next five years.
Media reported that the west African country signed a deal earlier this year with Quantum Power for the construction and operation of LNG storage and regasification facilities.
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