Yemisi Izuora/Ijeoma Agudosi
Energy situation in neighbouring state of Ghana is deteriorating following lack of ability of Nigeria to meet its gas supply obligation to that country.
Lack of adequate gas supply has drastically condensed the country’s power generation capacity.
Nigeria and Ghana has a gas supply deal through the West African Gas Pipeline (WAGP) project, but due to technical challenges arising from vandalisation of gas infrastructure has constrained Nigeria from meeting that obligation.
Similarly, gas from Ghana Jubilee Field off-shore Cape Three Points to the Ghana Gas Processing Plant at Atuabo is to be delayed for a further three weeks due to some technical challenges.
Challenges with gas compression systems on the FPSO Kwame Nkrumah have been identified as the main problem.
Tullow Oil plc an oil firm with broad investment in Africa in a statement said, gas exports from the Jubilee Field to the Ghana Gas Plant at Atuabo have been suspended due to technical issues with gas compression systems on the FPSO Kwame Nkrumah, and are expected to resume by mid-August.
“Tullow has mobilised a team of experts to rectify the fault within the gas compression system and estimates that it will take approximately a further three weeks to reinstate gas exports and full oil production.”
Challenges with the compressors over the past three weeks have meant that thermal plants sited in the Western Region, which were hitherto running on cheap gas supplied by Ghana Gas Plant, have been operated using crude oil which is comparatively expensive to generate power.
The huge cost involved in running the plants on crude, oil coupled with insufficient supply of gas from Nigeria via the West Africa Gas Pipeline, is likely to compound the current energy crisis that has necessitated a nationwide power rationing regime.
Largest power producer Volta River Authority (VRA) conservatively estimates that it requires about US$50million to power its thermal plants in the absence of gas every three weeks a financially challenging position for the Authority.
The oil producer says it will review its 2015 production forecast for Jubilee due to the recent development.
“Tullow will review its 2015 production forecast for Jubilee and provide an update on progress at its half-yearly results on 29th July.”
Oil production is currently constrained to approximately 65,000 bopd and is under constant review. The company however assured that there is no effect on the field’s reservoir or resources.