AfGen, Ghana Gas to Explore LNG Import Project in Ghana

Gasol announced that African Power Generation Limited (AfGen) has signed a Joint Venture Agreement with Ghana National Gas Company aimed at providing additional gas to Ghana.

Gasol has an option to purchase the entire issued share capital of AfGen from African Gas Development Corporation Limited until 24 August 2014.

Under the JVA, AfGen and Ghana Gas have agreed to establish a new joint venture company, to be incorporated in Ghana. The JV parties will explore a fast track LNG import project located in Ghana, with regasification facilities to supply regasified LNG to power plants and other gas users as a dedicated solution for Ghana, independent of the West African Gas Pipeline.

The JV, when adequately established and capitalised, will ultimately be responsible for the sale and marketing in Ghana of regasified LNG from Gasol’s LNG Import Project in Benin via the West African Gas Pipeline. Initial gas volumes to be sold into Ghana are expected to be a minimum of 100mmscf/d for a minimum period of five years.

Gas from the JV will complement Ghanaian field gas as well as contribute towards achieving security of the gas supply needed to address Ghana’s current gas deficit and diversify gas supply risk.

Alan Buxton, Chief Operating Officer at Gasol, said: “We are very pleased that, following on from the MoU signed between Ghana Gas and AfGen last year, AfGen has now moved on with a formal agreement which envisages the incorporation of a joint venture company. The arrangements signal progress on two fronts, both in delivering a dedicated solution for Ghana and prior to the implementation of that solution, the sale and marketing of regasified LNG in Ghana from our planned Benin LNG Import project.”