The Ghana National Petroleum Corporation (GNPC) has signed a 12-year agreement with Rosneft, a Russian firm, for the supply of natural gas to Ghana.
The supply contract is a hybrid Liquefied Natural Gas (LNG)/gas supply agreement, wherein Rosneft will deliver LNG to a regasification terminal located at the Tema Port, to be processed and the gas delivered to GNPC at the existing Tema metering station.
The signing took place on the side-lines of the 26th St. Petersburg International Economic Forum, St. Petersburg, Russia.
GNPC Board Chairman Frederick Blay signed on behalf of GNPC, with Igor Ivanovich Sechin-Chief Executive Officer and Chairman of the Management Board of Rosneft, signing for his company.
The gas delivered by Rosneft, in the volume of ca. 1.7 mmtpa (or 250 mmscf per day), will provide a competitive and secure source of fuel – supplying 25% of Ghana’s overall power generating capacity.
“Access to LNG places Ghana at the centre of West Africa’s rapidly growing energy market, providing opportunities to create jobs and build local capacity,” a statement from GNPC said.
The two companies also agreed to cooperate in the development of opportunities in the upstream and downstream sectors, given that Rosneft is an established upstream operator.
“This large transaction will stimulate further opportunities for investment between the two countries, both within the oil and gas sector and beyond. We hope that through this strong cooperation, Ghana can also act as a gateway for Russian investment within the wider West African region,” Mr. Blay noted.
Mr. Sechin also noted that: “The signed documents open a new stage in the development of cooperation between Russia and the Republic of Ghana. Ghana has placed itself among dynamically developing economies, with its energy demand growing year on year”.
“In September 2017, GNPC entered into a gas sales and purchase agreement (GSA) with Gazprom. Due to a corporate restructuring, Gazprom’s supply obligations under the GSA have been assumed by Rosneft, an affiliate,” the statement said.
Rosneft and Gazprom are both majority-owned by the government of the Russian Federation. Other significant shareholders in Rosneft include BP and Qatar Investment Authority.
“We are happy to be working with Rosneft on this LNG transaction, and already the two parties are looking at greater cooperation and partnership in the upstream sector,” said the CEO of GNPC, Dr. K. K. Sarpong.