In March 2017, Ghana National Gas Company (GNGC) took the bold decision to indigenize the operations and maintenance of the Atuabo Gas Processing Plant and its associated Pipelines. Unlike similar processing plants in Trinidad & Tobago and Nigeria, which were indigenized after 50 and 40 years respectively, Ghana Gas was able to accomplish this commendable feat under 2 years and 3 months. This milestone has been described by experts as unprecedented.
The indigenization of the Atuabo Gas Processing Plant has yielded national benefits including saving the tax-payer and Government of Ghana a monthly bill of US$3,000,000 (culminating into US$36,000,000 annually) as cost for engaging the services of the expatriates.
It has also increased the employment of young Ghanaian graduates with engineering, administrative skills and supporting services in the company, adding to the aspirations highlighted by local content and local participation policy of the country’s oil and gas industry.
Delivering a statement on the floor of parliament, Hon. Frank Annoh-Dompreh, Member Of Parliament for Nsawam-Adoagyiri and Majority Chief Whip, said that the company has increased its local workforce by about 300% from 2017 to 2021.
“With future addition to its business portfolio, the company hopes to attract more qualified local graduates into its field of operations,” he said.
The statement was titled “The Untold Success Story of Ghana Gas”.
Hon. Annoh-Dompreh stated that due to the continuous and enhanced capacities of the young and local engineers, the company has successfully undertaken some major works after the takeover, including three (3) planned maintenance shutdowns of the GPP and related pipeline and stations to maintain their integrity and ensure their continual and optimal functioning, and several pigging exercises of both the onshore and offshore gas pipeline systems for cleaning, inspection and other remedial works.
He stated that as an engine of industrialization, Ghana Gas provides lean gas to power producers for the production of electricity, aiding in the stoppage of intermittent supply of electricity (dumsor) which plagued the nation and businesses alike. This has also ensured an uninterrupted flow of lean gas to VRA for power production. Currently, Wangkang, Keda (Twyford) and Jintao are ceramic companies that receive sales gas at a moderate industrial rate for industrial heating purposes.
“Mr. Speaker, there has been a remarkable increment in gas flow from 90 million standard cubic feet per day (mmscfd) to 300mmscfd since the indigenization, with future plans to increase to 450mmscfd when the proposed GPP Train 2 project is completed. Prior to the increase in gas flow, GNGC championed the interconnection of the Atuabo – Takoradi pipeline and the West Africa Gas pipeline to ensure reverse gas flow from the western to the eastern enclaves. Again, the KARPOWER barge was relocated to Takoradi to ensure close proximity to gas supply.
“With an increase in flow and expansion of the gas network, after taking over from SINOPEC, it was imperative to ensure that the network operates at the required pressures. Hence, the need to construct a compressor station to meet pressure demands within the pipeline network. Pursuant to this, the Anokye Main Compressor Station (AMCS) was built by GNGC and it is under the operatorship of Ghanaian engineers.
“Mr. Speaker, also, the company has supported the SDG 7 (affordable and clean energy) and Government’s policy on the utilization of LPG, by meeting 60% of the LPG requirement of the country. This percentage is anticipated to increase upon the completion of the GPP Train 2, which will be configured to produce more pure products.
“Under the directive of Government, the company is in the process of partnering other entities to use gas as feedstock for fertilizer production. This venture shall among other benefits, provide a boost for the local agricultural industry, save the Government millions of dollars from the importation of fertilizer and help reduce the nation’s foreign exchange losses from such imports,” he said.
Hon. Annoh-Dompreh noted that GNGC as a socially responsible company always thrives to give back to the community in which it operates and by extension to the whole country as a whole.
“The company has therefore, rolled out several CSR programmes across the nation including the recent 1R1M. Through this programme, Ghana Gas has executed several project geared toward improving the livelihood of Ghanaian communities. The company has completed about 150 projects across the nation covering areas such as education, health, boreholes, roads security, social development and sports – the construction of Astro Turfs. The Company has also provided and still provides scholarships to Ghanaian students along all the levels of education,” he said.
He noted that with reference to the Gas Master Plan, GNGC plans to expand its infrastructure by extending the Esiama – Prestea Pipeline to Burkina Faso through Kumasi, which will serve the AMERI plants being relocated to Kumasi.
“The Company also has plans to create some redundancy by constructing its own Takoradi – Tema pipeline to link the western and eastern corridors. There are plans to also link the aforementioned pipeline into the hinterlands through Atiwa to Kumasi. For safe bottling and distribution of LPG, the Company has commenced the construction of an LPG bottling plant, which is located in Axim. All these projects are expected to be constructed and operated by Ghanaian engineers, going a long way to reduce unemployment and also to promote the indigenization drive.
“Mr. Speaker, it is without doubt that the stories told give a vivid and clear indication on the success trail of Ghana Gas and must be applauded, encouraged and be positioned to give and to do more,’ he said.
About Ghana National Gas Company
The Ghana National Gas Company (GNGC) is a strategic gas midstream company, which was incorporated in July 2011 under the tenure of former President John Dramani Mahama. The company is mandated to build, own and operate infrastructure required for gathering, processing, transporting and marketing natural gas resources in Ghana and internationally.
Ghana Gas was born with a vision to be a trusted and reliable gas service company. In the pursuit of this dream, the company identified three (3) pillars of growth including Business Development, Capacity Building and Community Development as critical to its existence and relevance.
The company completed the Early Phase Gas Infrastructure System or the Phase 1 of the Western Corridor Gas Infrastructure Development Project in November 2014 to enable the processing and transportation of dense phase raw gas from the Jubilee field to VRA for power generation. This phase comprised the Atuabo Gas Processing Plant, 12-inch 58km Offshore Gathering Pipeline System, 20-inch 110km Atuabo-Takoradi Gas Transmission Pipeline System, 20-inch 75km Esiama-Prestea Gas Transmission Pipeline System, Takoradi Distribution Station, Esiama Regulating and Metering Station
Prestea Regulating and Metering Station and Block Valve Stations.
The commercial operations of the gas infrastructure system commenced in April 2015 to enable the uninterrupted supply of lean gas to VRA. Other useful products from the processing of the raw gas include Liquefied Petroleum Gas (LPG), Condensates and Pentanes.
For many who are familiar with science, gas processes and transmission operations are complex activities requiring various shades of knowledge in engineering including Chemical, Mechanical, Electrical, Civil and other engineering disciplines. Owing to the nature of the business, the engagement of expatriates’ personnel was justified to construct, operate and manage these facilities in this nascent industry. In line with this, the services of SINOPEC, a Chinese company, was procured under an EPCC arrangement to construct the above-mentioned gas infrastructure. After construction, SINOPEC was engaged to operate and maintain these infrastructures.
Upon assumption of office as the Chief Executive Officer of Ghana Gas, Dr. Ben Asante, with the support of management, embarked on an intensified training and capacity building programme in the company. The knowledge and skills of the engineers and technicians were enhanced and improved through in-house training sessions and on-the-job experiences obtained from the direct understudying of the expatriates.
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