Ghana could spend more than US$1billion on liquid fuel to keep its thermal power plants running in 2025, Minister for Energy and Green Transition John Jinapor has said as rising electricity demand is expected to grow by 300 megawatts each year.
He described the range of fuel products to include diesel, light crude oil and heavy fuel oil (HFO).
This development, which puts fresh pressure on the country’s energy infrastructure, according to the minister is unsustainable – stressing an urgent need for a new gas facility to ease financial and operational strain on the sector.
Mr. Jinapor, who was speaking at the inauguration of two committees – Technical and Steering – to lead construction of the second national gas processing plant (GPP2) in Accra, bemoaned that “liquid fuel currently is not part of the tariff structure”.
As part of efforts to address the challenge, construction of GPP2 has commenced. According to the minister, this project is intended to provide a more cost-effective alternative to liquid fuel for electricity generation.
“Currently, we have a gas deficit of about 100 million standard cubic feet (MMscf). So, we are compelled to buy very expensive liquid fuel to fill that gap. It is in light of this that government has decided to build GPP2,” the minister explained.
With this, it is expected that the country could save up to US$500million annually. This implies that the savings from using gas as an alternative to liquid fuel for power generation yearly can pay for the country’s second gas plant.
The construction of GPP2 is therefore deemed a strategic initiative in expanding Ghana’s gas infrastructure to meet growing domestic needs while reducing annual natural gas losses.
Mr. Jinapor, for instance, noted that one of the key factors contributing to the country’s challenges is that independent power producers (IPPs) are continually pursuing government for payment of owed funds.
GPP2 among others will hopfully lead to increased gas consumption, availability of Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) as well as employment creation, both direct and indirect.
Credit: bftonline