Ghana Agrees to $500 Million Gas Pipeline Deal With Yantai Jerehby
Ghana signed a $500 million deal with China’s Yantai Jereh Oilfield Services Group Co Ltd. to build a natural gas pipeline as the West African nation seeks relief from chronic fuel shortages that have idled power plants.
Yanti Jereh will build and operate the 290 kilometer (180 mile) pipeline to transport gas sourced from the Tweneboa-Enyenra-Ntomme venture with Tullow Oil Plc and Eni SpA’s Sankofa-Gye Nyame field to thermal plants at the portal city of Tema, about 30 kilometers east of Accra, Sun Weijie, the company’s chairman, said at a signing ceremony in the capital on Wednesday. Yantai Jereh will transfer ownership of the pipeline to the government after 15 years, he said.
“Ghana will have energy sufficiency in the next 24 months” when the project is expected to be completed, George Sipa-Adjah Yankey, the chief executive officer of Ghana National Gas Co., said at the ceremony.
West Africa’s largest economy after Nigeria is seeking to secure regular fuel supplies for power plants after blackouts of as long as 24 hours weighed on growth, which last year fell to the lowest in almost two decades.
The pipelines will be able to carry as much as 550 million standard cubic feet of gas daily, Sun said.