Ghanaian Natural Gas - A Huge Asset
According to estimates, Ghana has between 1.5 Tcf and 1.7 Tcf of gas reserves. These estimates also include reserves, which have not been discovered yet. In 1974, the first reserve of natural gas was discovered in Ghana, in the Cape Three Points Basin. With growing energy needs, this is good news for the country and people.
What does discovery of natural gas means for Ghana?
The country spends between 20 and 30 percent
of its exports earnings to import crude oil and petroleum
products. With fluctuating and ever increasing prices of crude,
the discovery of natural gas means that Ghana can go in for
local production. If this production meets even a third of the
country’s needs, it will be able to save around $350 million
each year. As a result, this money could be used in other areas
of the economy.
Natural gas is a source of clean energy for the country. It will help to spur economic growth and development. Once proper infrastructure is in place, it will attract foreign investment and help in increasing employment in the region. With natural gas in the country, industries and households will benefit. And, if the country exports natural gas, it will earn the much-needed foreign exchange. The people can look forward to reduced electricity bills and lower fuel costs for their vehicles.
What is happening in Ghana today?
Thanks to the natural gas discovery in the
country, the impact is already visible. The towns that are
closest to the Jubilee Fields have created employment
opportunities for thousands of people. Many towns, such as
Takoradi, have had their fortunes changed with an influx of
workers coming in from other parts of the country.
The Export of Natural Gas from Ghana
The export of natural gas from Ghana will
open up a whole new revenue stream for the country. There is
already a lot of interest in natural gas, with the China
Development Bank Corp. signing an agreement to lend $1 billion
to Ghana. Furthermore, the country’s Ghana National Gas Co. has
penned another agreement for a natural gas project with China
Petroleum and Chemical Corp. for $850 million. Once the export
of natural gas begins, under this agreement, China will get
13,000 barrels of oil every day from Ghana and the price would
be as per the prevailing price on that particular day.
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