Processes for the development of a secondary gas market in Ghana have begun earnestly, to provide a platform where gas buyers and sellers can trade gas.
The development of the secondary gas market is expected to allow domestic gas price discovery that reflects Ghana’s industrial demand and supply conditions.
Information available to Goldstreet Business indicates that in 2020 the ministry of finance will facilitate the development of a Secondary Gas Market for the Tema Industrial Area.
Already, the Energy Commission has started consultations and procurement processes for an operator to develop, construct and operate a gas distribution network in the Tema Industrial Area.
In view of this development, the Commission from next year will promote the utilization of natural gas in the industrial sector to ensure the full and productive utilization of Ghana’s domestic natural gas resources.
Experience from similar markets in developed countries indicates that gas users will be able to create their own portfolios of long- and medium-term gas supplies, so that they can stabilize their gas supply inflows and mitigate price volatility.
In the long run, the market will enhance Ghana’s position as a hub for LNG and gas trading activities, and pave the way for the potential establishment of a gas forward market to trade financial contracts for gas supply.
A gas forward market will enable discovery of gas prices over various time periods such as the coming months, quarters and for the year ahead, and allow the trading of financial contracts that settle against the spot price for gas
A few months ago, the Vice President, Dr Mahamudu Bawumia noted that due to the delicate nature of the gas industry in the country, government will soon complete work on the transformation of the existing gas master plan into a gas law which will be used to regulate the Industry.
The new law is expected to provide the enabling environment for investors as well as help government to implement new technologies for the gas sector.
In a bid to increase the productive uses of electricity and natural gas to spur industrialization, the Ministry of Energy, in collaboration with Ghana National Gas Company is making efforts to maximize the usage of natural gas, as a way of contributing to the country’s industrialization agenda.
Currently, two ceramic companies (Wangkang and Twyford) in the Western Region utilize close to 10 MMscf of gas whilst, a cogeneration facility (Genser Energy) consumes about 15 MMscf with plans to increase to about 34 MMscf.
2019 Gas Production
According to the 2019 Annual Petroleum Report, a total of 37,939 MMScf of associated gas had been produced from the Jubilee Field as at 30th September, 2019, out of which 17,693.48 MMScf was reinjected to maintain reservoir pressure, 14,052 MMscf was exported to the GNGC Atuabo Gas Processing Plant (GPP), 2,611.27 MMScf was utilized for power generation on the FPSO and 3,582.70 MMScf was flared.
Associated gas produced from the TEN Field as at 30th September, 2019, was 35,148.54 MMScf, of which 30,700.96 MMScf was re-injected, 2,749.59 MMScf was utilized on the FPSO for power generation, 693.92 MMScf was exported and 1,018.78 MMScf was flared.
A total of 25,563 MMScf of non-associated gas was produced from the Sankofa-Gye Nyame (SGN) Field out of which 20,407 MMScf was delivered to the power producers as at 30th September, 2019, via the Onshore Receiving Facility (ORF).