In years ahead the Sankofa Gas Project aims to develop offshore natural gas located in deep water 60km offshore of Western Ghana.
The gas from the project will fuel up to 1,000MW of domestic power generation, or about 40% of Ghana’s currently installed generation capacity. This will help improve the reliability of power services in Ghana, replacing the current use of expensive, polluting fuels (imported light crude oil) with cleaner and more affordable gas resources. Once the project is operational, Ghana will be able to reduce its oil imports by 12 million barrels per year and reduce CO2 emissions by around 8 million tons over five years.
The exploration and commercialization of the gas will be carried out by two private investors, Eni of Italy and Vitol Group of the Netherlands, in close partnership with Ghana’s National Petroleum Corporation, (GNPC).
The World Bank Group is supporting Ghana’s Sankofa Gas Project through a package of World Bank Guarantees to the tune of $700 million. The proposed guarantees will mobilize the much-needed private investment in Ghana’s domestic gas sector and facilitate an investment of up to $7.9 billion by private sponsors.
This would be one of the largest foreign private investments in sub-Saharan Africa in recent years. The World Bank Group’s engagement in the energy sector is intended to help Ghana secure the affordable, reliable, and sustainable energy supply needed for development, poverty reduction and the promotion of shared prosperity
This project will not only bring revenue to the country but it will also prevent air pollution by reducing carbon emissions and also cut expensive fuel imports. Once the Sankofa field starts to produce gas in early 2018, Ghana will be able to reduce its oil imports by 12 million barrels per year and reduce CO2 emissions by around 8Mt over five years
Developing domestic natural gas resources in Ghana is a priority to improve the country’s energy services. Other sources of energy have to be exploited to curb to eradicate the dumsor season. This project will certainly ease the financial imbalances of the energy sector, decrease subsidies, and create an additional fiscal revenue stream for the government.
More affordable and locally available natural gas for power generation will ensure a cleaner, more secure power supply, better service delivery and less power rationing as currently experienced by Ghanaian consumers. The Sankofa gas project is expected to create US$2.3 billion of revenues for Ghana. That is definitely some good news for the economy.
There may be light at the end of the tunnel in the Ghana power deficit as a result of the development of the Sankofa gas project, which aims to improve the country’s energy services.
Author: Kwesi Otoo, Writer threesixtyGh