Does Ghana need LNG?

Ghana could be the first Sub Saharan African country to import LNG with the facilities at Tema, near Accra, being readied to receive cargoes. However, the country already imports pipeline gas from Nigeria, although that supply has been unreliable in the past, and domestic production is growing. Now that the producing fields in the west of the country are connected to the largest demand centre around Accra via the West African Gas Pipeline, increasing domestic production should be able to supply rising demand. The need for LNG as well, therefore can be questioned, especially as it looks more expensive than both domestic production and pipeline imports from Nigeria. However, increased domestic production requires not only the timely negotiation of commercial agreements, but also realistic expectations on price by both buyers and sellers.

By: Mike Fulwood