Ghana's $500 Million Gas Pipeline Plans Investment Decision in Early 2027

en.Wedoany.com Reported - On September 16, Judith Adjobah Blay, Chief Executive Officer of Ghana National Gas Limited Company (Ghana Gas), stated that the company plans to make a final investment decision in early 2027 on an east-west onshore natural gas pipeline project involving approximately $500 million in investment, and hopes to launch project implementation by the end of the first quarter of 2027 at the latest. The company is currently advancing project financing arrangements. The proposed pipeline will be approximately 278 kilometers long and will transport natural gas from gas processing facilities in western Ghana to industrial gas markets in the southeast.

The project plans to build the West-East onshore natural gas pipeline, primarily supplying gas to the Tema industrial area and industrial users in southeastern Ghana. Ghana Gas currently needs to use the West African Gas Pipeline to transport western gas to eastern markets. Ghana's Ministry of Energy and Green Transition previously disclosed that the country has achieved reverse transportation of western natural gas to Tema via the West African Gas Pipeline through the Takoradi-Tema Interconnection Project; the proposed east-west pipeline will form a new domestic natural gas transportation corridor.

Infrastructure data published by Ghana's Energy Commission shows that Ghana Gas's existing major onshore gas transmission system includes a 20-inch diameter, 111-kilometer main pipeline, as well as a 75-kilometer branch line extending from Esiama to Prestea; there is also currently a gas transmission corridor from Takoradi in the west to Tema in the east operated by West African Gas Pipeline Company. Ghana Gas's official website shows that the company's existing natural gas pipeline infrastructure totals approximately 300 kilometers in length.

On the upstream gas supply side, Ghana Gas expects that natural gas production from the Sankofa offshore project operated by Eni will increase from the current approximately 280 million standard cubic feet per day to 350 million standard cubic feet per day in 2028. The company currently also processes approximately 130 million standard cubic feet per day of associated gas from the Jubilee and TEN oil fields operated by Tullow, and the two oil fields have an additional approximately 50 million standard cubic feet per day of natural gas resources available for processing.

Ghana's Energy Commission 2026 Energy Outlook shows that the country's natural gas demand in 2026 will still be dominated by the power generation sector. Under the base case scenario, average natural gas demand from the power sector is approximately 460 million standard cubic feet per day, accounting for more than 85% of natural gas consumption, while average non-power industrial gas use is approximately 36 million standard cubic feet per day. Ghana Gas expects that national natural gas consumption will increase from approximately 502 million standard cubic feet per day in 2026 to 715 million standard cubic feet per day in 2030. Ghana currently also imports approximately 70 million standard cubic feet per day of natural gas from Nigeria.

Natural gas distribution infrastructure in the Tema industrial area is also being advanced separately. Ghana's energy sector previously completed a feasibility study for a low-pressure natural gas distribution network in the area and launched front-end engineering design work, covering pipelines, instrumentation, communications, cathodic protection, civil works, and operation and maintenance plans, with the subsequent model pointing to an integrated engineering, procurement, construction, and financing contract. The distribution network is planned to supply low-pressure natural gas to identified industrial users in the Tema industrial area.