Ghana expects early pay-off for its $700m gas project

18 December 2011, Sweetcrude, ACCRA – Head of the Ghana National Gas Company (GNGC), George Adjah-Sipa Yankey, has said a $700 million gas project currently underway will be able to pay off a $3 billion Chinese loan five years after operations start.

The GNGC chief executive officer said China’s Sinopec International Petroleum Service Corporation has begun surveying the sites in the country’s oil-rich Western Region where pipelines would be laid and a gas-processing plant constructed.
“Once we start operations, in between four-and-a-half to 5 years we will generate enough money to pay of the entire loan and start making profits,” Yankey told Reuters of a $3 billion loan from the Chinese government approved by Ghana’s parliament in August.

Yankey’s comments come days after the International Monetary Fund (IMF) agreed to disburse $91.55 million of Ghana’s three-year IMF loan and approved changes to loan conditions, allowing Ghana to borrow more money to fund infrastructure projects.

IMF Deputy Managing Director, Naoyuki Shinohara, said after an evaluation of Ghana’s debt, the body decided it could afford to increase its borrowing because the government would be financing projects that would be used to generate enough revenue, Reuters report said..

GNGC and Sinopec signed an agreement last month for the completion of the first phase of the project, expected to be completed in December 2012.

The first phase of the project will involve the construction of a gas processing plant, a 36-kilometer shallow-water offshore pipeline from the FPSO to the plant, a 120-kilometer onshore pipeline to a power plant in Aboadze and a 75-kilometer onshore pipeline to the town of Prestea.

Yankey stated that during the first phase, the gas output will be supplied to power plants in the Western Region and that the plant is expected to process 150 million cubic feet of gas daily, and this would increase as the project continued.

“During the second phase we hope to expand the facility to process 450 million cubic feet of gas daily,” Yankey said, emphasizing that they planned to lay pipelines as soon as other wells began producing.

Echoing statements made by Vice President John Dramani Mahama on last week, Yankey said that when the 3-year project was completed in 2015, Ghana would become a regional exporter of electricity.

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  • this supposed fact endsot seem to have stopped western parasites like yourself from living a life of luxury in nigeria and treating with utter contempt the nigerian people who have so kindly allowed you to be a guest in their country, if nigeria is according to your information the 15th failed state – can i ask what you are doing living there? ive noticed from reading a few of your blogs that you like to engage in bashing a country in which you are enjoying benefits which you would never dream of enjoying in your own country – i find it a tad hypocritical of you to be pointing out nigeria’s faults when the genesis of nigeria’s problems can be traced back to the long term devastating effect of the trans atlantic slave trade which your country (britain) was a leading proponent of, followed by colonialism and now neo colonialism. if you are as educated and knowledgeable as you claim to be, you would be presenting a more objective picture in light of what has gone on in the past instead of focusing on problems which have been directly caused by imperialist powers. why arent you condemning the world bank, imf and other international economic bandit cartels which engage in the economic destruction of african countries by way of so called economic recovery packages such as Structural adjustment programmes where western leaders bribe african leaders NOT to pay off outstanding interest on loans so that they (western powers) can retain their stranglehold on african natural resources and thereby continue to cripple the growth of african economies.if nigeria is no 15 on your list of failed states – could that be because your western leaders continue to sell arms to corrupt puppet dictators put in place by your western countries to suppress dissent from its people, could it be because your corrupt western multinationals such as shell bp, chevron, continue to collude with corrupt nigerian government officials in order to keep oil prices down and simultaneously create environmental destruction in the oil producing areas. could it be because corrupt western companies such as haliburton, (owned by former US vice president – dick cheney ) continue to offer enormous bribes to nigerian officials in exchange for multi billion dollar oil and gas contracts.and the UK is such a success story with its rising unemployment, crime, squalid housing, rising xenophobia (the securing of an MEP seat in the European Parliament by Griffin of the BNP), collapse of the housing market and extension of its police state laws – attempt to remove the right of habeas corpus why dont you look at your own country before you dole out unwanted advice to a country which is trying to rid itself of imperialist parasites like yourself in order to move forward.