Africa Oil & Gas: Ghana 1000 Project Partners in SPA Negotiations with Shell

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Ghana 1000 Project Partners in SPA Negotiations with Shell

GE and Endeavor Energy, the co-developers, and partners Eranove and Sage Petroleum have agreed on a supply term sheet with Shell and entered into exclusive SPA negotiations regarding a long-term supply agreement for LNG for the Ghana 1000 project.

The Ghana 1000 project is an integrated gas-to-power project that will consist of 1,300 MW to be delivered in two phases, a floating storage and regasification unit (FSRU) and related infrastructure necessary to import LNG. Once complete it will be sub-Saharan Africa’s largest power park.

The first phase of the Ghana 1000 project is expected to be completed in late-2016 and will add 125MW to the grid. This will increase to 750MW by 2018 and 1,300MW within five years.

In February Endeavor Energy and GE announced the signing of an agreement with Excelerate Energy for the reservation of an FSRU that will provide storage and regasification of LNG for the Ghana 1000 project.

“We are delighted to have reached agreement with Shell on the key parameters of a long-term LNG supply arrangement and have entered into exclusive discussions on a long-term LNG supply for the Ghana 1000 project,” remarked Leslie Nelson, CEO of GE Ghana. “Securing a reliable, flexible and affordable LNG supply arrangement is a critical piece of the puzzle to make this project a reality.”

CEO of Endeavor Energy Sean Long said the inclusion of Shell will add another world class player to the already impressive roster of participants in the Ghana 1000 project.  “Shell is the world’s leading LNG supplier and has demonstrated the capability to offer innovative and collaborative solutions for the needs of a transitioning power market such as the one developing in Ghana. Importing LNG offers tremendous flexibility for Ghana to manage its power fleet. As a lower cost alternative to light crude oil, LNG can be used not only on a long-term basis for new power projects, but can be imported on a spot basis to balance any short-term disruptions from Ghana’s domestic gas production or from diminished hydro production in years with low rainfall.”

Nelson also disclosed that Sage Petroleum, a wholly-owned Ghanaian company and the largest indigenous oil trading company in the country. Sage joining Ghana 1000 fulfills the consortium’s commitment to ensure localization of operations in Ghana.(AfricaPetroleum.com)

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