14 September 2014, Accra – President John Mahama has announced that Ghana’s delayed project to supply gas from its offshore Jubilee oil field will start production by the end of the year.
The $850 million project was supposed to have opened in December but stalled largely because of difficulties securing the disbursement of $600 million from the Chinese Development Bank, part of a $3 billion loan agreement signed in 2011.
As a result, Mahama’s government has struggled to tackle the country’s energy supply deficit and has spent more money than its budget projections on oil imports. This in turn has worsened a fiscal deficit.
“Some gas will start flowing soon but commissioning will be when the full volume of 120 million standard cubic feet of gas is being transmitted to Aboadze and I suppose that will be sometime by the end of this year,” he told reporters.