HomeIndustry SectorsGenerationChinese to help fund Ghana's oil drive

Chinese to help fund Ghana’s oil drive

British oil company
Tullow Oil is making
considerable progress
in its development of
Ghana’s Jubilee oilfields
Accra, Ghana — ESI-AFRICA.COM — 17 August 2011 – The government of Ghana is to borrow US$800 million from the state-owned China Development Bank to develop its natural gas infrastructure, and the first gas could be expected by the end of 2012 or early 2013.

Head of the Ghana National Gas Company George Sipa-Adzah Yankey “’ who did not give any details on the loan “’ also said that Ghana’s gas production was expected to stabilise at around 120 million cubic feet per day.

Reuters reports that the deal “’ which has been signed off by the cabinet but needs parliamentary approval “’ came after the West African state joined Africa’s club of oil-producing nations in December last year when its Jubilee field came on line.

A gas pipeline will link the offshore production site to a new processing plant in the Western regional of Bonwire as part of efforts to boost the country’s energy supplies.

“The China Development Bank has agreed to finance the project and plans have reached advanced stage,” Yankey said, adding that the project would take 18 to 20 months to complete.

“We are expecting the infrastructure to be fully installed and first gas commissioned by end of 2012 or at the latest by early 2013,” he added.

“Most of the gas will fuel Ghana’s gas-fired power plant at Aboadze, but we do aim to export gas in the future,” Yankey said.

According to an agreement between the government and exploration companies, Ghana will receive all of the first 200 billion cubic feet of gas, after which the state will only receive its share.