Ghanaians can expect cheaper LPG in the near future following the new deal signed by the government with its partners operating at the Jubilee and TEN fields.
The government, in collaboration with Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and Explorco, has announced the signing of a Memorandum of Understanding (MoU) to extend the licences for the Jubilee and TEN fields, located in the West Cape Three Points and Deep Water Tano blocks, through to the year 2040.
Checks by The High Street Journal reveal that MoU has given the approval to drill up to 20 additional wells in the Jubilee field, representing an investment of up to $2 billion in Ghana over the life of the licences.
As a result of the extension, the joint venture partnership expects to realise a material increase in gross 2P reserves.
This new deal, the Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), Benjamin Nsiah, says, comes as good news to the ordinary Ghanaian and the country’s quest for cleaner energy.
In an interview with Accra-based JoyNews monitored by The High Street Journal, Benjamin Nsiah explained that the MoU seeks to secure more domestic gas production for the country, cutting out the expensive imports from Nigeria, reducing costs for both electricity generation and household LPG.
He emphasises that the new agreement will significantly increase local gas production to meet 100% of local demand, bringing prices down for households and driving the government’s clean cooking agenda.
“It is likely going to push the LPG market to be a very affordable market because 100% production is likely going to come from domestic sources, either than the 50% we are doing today. And if 100% is coming from domestic sources, what it also means is that the cost of this particular product is going to be cheaper. And that also fuels the government’s agenda of clean cooking energy at the household level,” Benjamin Nsiah explained.
He further explained that the local production of sufficient gas will cut out the transportation and distribution costs the country faces with the importation of gas from Nigeria.
This, he believes, will make LPG highly affordable for Ghanaian households.
Not only will Ghanaians benefit from affordable and cleaner energy. He added that electricity production will also improve there will be a sufficient domestic supply of gas to power thermal plants to run more efficiently, without paying for expensive emergency fuel.
For the Executive Director of CEMSA, this new MoU marks a significant milestone for the country’s energy sector.
He maintains that the extension of the partnership through to 2040 is a strategic win, anchoring cheaper energy, domestic value addition, and energy security.
