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Ghana Gas, Tullow signs construction tie-in agreement



By: Fred Yaw Sarpong

Ghana National Gas Company has entered into a Construction, Pre-Commissioning and Tie-in Agreement (CTIA) with Tullow Ghana Limited in Accra on Tuesday 4 February, 2014 at the Ghana Gas head office.

The CTIA agreement allows Tullow Ghana and Ghana Gas to construct, pre-commission, and tie-in the Floating Production Storage and Offloading (FPSO) vessel and the Ghana Gas Deep Water Pipeline.

The purpose of the works is to connect the Jubilee Facilities and Ghana Gas Facilities, in order to transport raw gas from the FPSO to the Atuabo Gas Processing Plant.

The Chief Executive Officer (CEO) of Ghana Gas, Dr. George Sipa-Adjah Yankey, who signed on behalf of his outfit, said the negotiation started barely a year now, and was happy the agreement was finally signed.

‘Our agreement today underpins Ghana Gas’ commitment to adhere to industry standards, required for the completion of the Western Corridor Gas Infrastructure Project,’ said Dr. Yankey.

According to him this strategic partnership with the Jubilee Partners, will allow his office to facilitate the networking of their systems, to ensure that Ghana Gas meets its goal of attaining First Gas within the coming months.

Mr. Charles Darku, the General Manager of Tullow Ghana noted that ‘the Jubilee Partners look forward to the timely completion of the remaining works on the infrastructure project to allow for the flow of associated gas from the jubilee field to Ghana Gas’ processing plant.’

The construction is expected to take two and half months before it completion.

The initial agreement among the Jubilee Partners, which includes Tullow PLC, Kosmos, Anadarko, PetroSA and the Ghana National Petroleum Corporation  was that any natural gas liberated from the Jubilee oil wells must be injected back into the well temporarily, pending the completion of the Atuabo Gas Project, which would power various thermal plants in the country to generate electricity.

Barely some few days, there were reports that suggest that the Jubilee Partners were seeking approval from President John Dramani Mahama to start flaring some of the natural gas from the Jubilee Oil Fields.

However, as of Wednesday 5 February, 2014, government was yet to decide whether to endorse the request by Tullow and the Jubilee partners to flare about 40 million standard cubic feet (40mmscf) of gas by mid-February this year.

Tullow’s proposal to do limited gas flaring generated serious debate among key players in the oil and gas industry in the country.

Tullow wrote officially to the Minister of Energy and Petroleum, Emmanuel Armah-Kofi Buah, informing him of threats to the Jubilee field should reinjection continue beyond February.

According to the company, a quick decision needs to be taken to avoid further threats being noticed currently.

But Ghana Gas and Sinopec have indicated that the Atuabo gas-processing plant will not be ready to receive gas until April, this year.

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