Ghana begins moves to substitute Nigerian with Equatorial Guinean gas

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Ghana one of the countries importing gas from Nigeria is no longer comfortable with her Gas supply agreement with Nigeria, Oriental News reports.

A state visit of Ghanaian president Akufo-Addo to Equatorial Guinea according to government sources was to “deepen the cordial bilateral relations between the two countries and explore possible areas of cooperation.” Akufo-Addo, while in the Central African country signed a government-to-government Heads of State Agreement with the Equatorial Guinean government for the supply of LNG from Equatorial Guinea to Ghana.

With the deal being signed and both leaders’ commitment, Ghana may be putting the final nail to the coffin that will see it wean itself off gas supply from Nigeria Gas, an intention the former petroleum minister, Emmanuel Armah Kofi Buah made public in August 2016. The ever-recurring hiccups in the supply of gas from Nigeria to Ghana for power generation have become too many and make Ghana incur more costs than expected.

Under the agreement, Equatorial Guinea would supply LNG to Ghana for a period of 15 years, with the deal reviewable every five years to meet the country’s ever growing demand for power. As part of the deal, an LNG regasification terminal will also be built in Takoradi.