GHANA NATIONAL GAS COMPANY WESTERN CORRIDOR GAS INFRASTRUCTURE DEVELOPMENT PROJECT

Transcription

1 GHANA NATIONAL GAS COMPANY WESTERN CORRIDOR GAS INFRASTRUCTURE DEVELOPMENT PROJECT

2 A Message from the Chief Executive Officer Dr George Sipa-Adja Yankey s the Chief Executive Officer of t h e G h a n a N a t i o n a l G a s Acompany, I feel privileged to be issuing this message. This is a critical moment in our company's history as we forge ahead with the implementation of Phase I of the Western Corridor Gas Infrastructure Development Project. Our journey begun a little over a year ago, and we have made significant progress in our quest to build a world class gas infrastructure. This, I trust, will c o n t r i b u t e t o G h a n a ' s r a p i d industrialization process as we prepare to evacuate, process and deliver natural gas resources from the Jubilee Field to industry in a safe, cost effective, responsible and reliable manner. We have so far: Ÿ S i g n e d a n E n g i n e e r i n g, Procurement, Construction and Ÿ Commissioning agreement with a c o n s o r t i u m l e d b y S i n o p e c International Petroleum Services Corporation from China, Completed laying of the offshore Ÿ pipeline Completed about 70% of the onshore pipeline and Ÿ Acquired, cleared site and completed about 55% of civil works for the gas processing plant Ÿ Core processing units of the Gas Processing Plant delivered to site It is also important to note that as a company, we are progressively developing peoples centred and an environmentally r e s p o n s i b l e b r a n d, n a m e l y o u r commitments to providing exceptional client service and to living our core values: Ÿ Integrity- Honesty and Accountability in every aspect of our business; Ÿ Professionalism- Achieving challenging goals by being proactive and innovative; Ÿ Excellence- Deploying the best technology and management 1

3 methods for achieving our objectives; Ÿ Team work- Cohesiveness and united in purpose; Ÿ Respect- Respect for people and fairness in our interactions; Ÿ Environment- Causing no harm to people and the environment; Ÿ Loyalty- Loyal to Ghana's economic aspirations and the Company; and Ÿ Accountability- We are accountable for all our actions. Looking ahead, we are focused on accelerating the execution of the gas infrastructure development project while continuing to build on our growth strategy, which is creating an i n t e l l e c t u a l l y c h a l l e n g i n g atmosphere that will bring the best out of our human capital and also enable us to compete in the global market. I am incredibly excited about this journey and truly believe the best of Ghana Gas is yet to come. Dr George Sipa-Adja Yankey Chief Executive Officer Ghana Gas 2

4 GHANA GAS CORPORATE PROFILE Founded: July, Offices: 10 Drake Avenue, Accra- Head Office, Awiaso Junction- Ayinase, Western Region. Mission: To contribute to Ghana's rapid industrialization process by building the infrastructure required for gathering, processing and delivery of natural gas resources to industry in a safe, cost effective, responsible and reliable manner. Vision: To be a fully integrated gas business company with a strong reputation as a trusted partner and reliable supplier of natural gas resources in Ghana and abroad. Our Management Team Dr George Sipa-Adja Yankey, Chief Executive Officer Mr Baluri Bukari Kassim, Director of Finance Mr Victor Sunu-Atta, Director of Project Development Mr Jacob McWood, Director of Operations Mr George Amoako-Adjei, Director of Gas Purchasing and Sales Dr Ben Asante, Project Consultant Contact: 10 Drake Avenue Airport Residential Area. P.O Box CT 3686 Cantonment - Accra. Tel: 233(0) Fax: 233 (0) info@ghanagas.com.gh w w w. g h a n a g a s. c o m. g h 3

5 BACKGROUND The discovery of oil and gas reserves in the Jubilee Fields in 2007 signified a turning point in the developmental efforts of the government and people of Ghana. In recognition of the potential of Ghana's oil and gas resources in national development, H.E. Professor John Evans Atta Mills in February 2011 commissioned a National Gas Development Task Force to review and make appropriate recommendations for the speedy r e a l i s a t i o n o f a n a t i o n a l g a s commercialisation infrastructure system. In April 2011 the Task Force submitted its report to the President. The recommendations therein included the evacuation and treatment of associated gas from the Jubilee Field production. Acting upon the above, President John Atta Mills sanctioned the establishment of an indigenous company to undertake the project, which culminated in the formation of Ghana National Gas Company (Ghana Gas), hence giving true expression to government emphasis on 'local content' in the oil and gas industry. Ghana Gas was thus incorporated as a limited liability company in July 2011 with the responsibility to build, own and operate infrastructure required for t h e g a t h e r i n g, p r o c e s s i n g, transporting and marketing of natural gas resources in the country. The Project The Offshore Pipeline, the Onshore Pipeline, the Gas Processing Plant, the Natural Gas Liquids (NGLs) Export System, and the Office Complex are collectively the Project, and are also sometimes referred to collectively as the Western Corridor Gas Infrastructure Development Project, illustrated in Figure 1. Figure 1. An Illustration of the Gas Infrastructure Project 4

6 Nature Of The Project T h e e a r l y - p h a s e o f t h e G a s Infrastructure Project is proceeding as planned, and has three main components, namely, i. the offshore raw natural gas pipeline component, ii. the onshore natural gas processing plant component, and, iii. the onshore processed (lean) natural gas pipeline component. The need to evacuate natural gas from the Jubilee field quickly so that the field could be optimally produced and to avoid flaring is the prime driver for the project. The schedule driven nature of the project required that the three components of the project are implemented in parallel. The Early Phase Gas Infrastructure Project is being pursued aggressively to enable delivery of Gas to the Takoradi Power Plants in Aboadze as soon as feasibly possible. As a result, significant progress has been made on various aspects of the project. Project Execution In November 2011 Ghana Gas signed a Project Implementation Agreement (PIA) with Sinopec International Petroleum Service Corporation (Sinopec) to enable the early implementation of the project. Subsequently, an Engineering, Procurement, Construction and Commissioning (EPCC) agreement was negotiated and signed with Sinopec. Under the EPCC contract, Sinopec will execute the following works; (i) to provide services for the FEED or Updated FEED for each of the Offshore Pipeline, the Onshore Pipeline, the Gas Processing Plant and the Natural Gas Liquids (NGLs) Export System (as each are defined below), (ii) t o p r o v i d e e n g i n e e r i n g, procurement, and construction of a. an approximately forty-five (45) kilometre shallow water offshore Natural Gas pipeline, b. an onshore Natural Gas pipeline system, consisting of an approximately one hundred and eleven (111) kilometres Main Pipeline and an approximately seventy five (75) kilometre Lateral Pipeline including bitumen surface access roads (including culverts) from the nearest existing roads (of whatever surface) to the regulating & metering stations and valve stations of both Pipelines, c. A 150 mmscfd Natural Gas processing plant to be located at Atuabo, Ghana, d. a NGLs Export System for the export of LPG produced at the Gas Processing Plant, and e. a n o p e r a t i o n o f f i c e complex and, (iii)t o u n d e r t a k e t h e p r e - c o m m i s s i o n i n g a n d commissioning of the Offshore P i p e l i n e, t h e O n s h o r e Pipeline, the Gas Processing Plant, the NGLs Export System, and the Office Complex 5

7 Project Management Ghana Gas has awarded the contract for Project Management Consulting Services for the implementation of the Western Corridor Gas Infrastructure Development Project to AECOM Technology Corporation (AECOM) a US based global provider of professional technical and management support services. Under the terms of the agreement, AECOM will take over construction and engineering management from Ghana Gas, conduct Factory Acceptance Testing of all critical equipment, supervise integration of all systems, perform precommissioning and commissioning of the entire systems and manage transition from construction to operational start-up. AECOM will a l s o d e v e l o p t h e P r o j e c t Management Directorate of Ghana Gas by providing training to Ghana G a s p e r s o n n e l i n p r o j e c t management. Prior to the engagement of AECOM, inspectors from two companies, Velosi Ghana and Worrall Lees Associates Ltd., of UK had been engaged to work with Ghana Gas personnel to manage the Project. Dr. Kwesi Botchwey, Board Chairman of Ghana Gas exchanging pleasantries with Mr. James F. Thompson, AECOM Chief Executive for Global Programs at signing ceremony. 6

8 Funding Of The Project A US$ 1 billion facility (part of US$3 Billion) has been secured from the Chinese Development Bank (CDB) through the Ministry of Finance and Economic Planning (MoFEP) for the implementation of the project. The government of Ghana shall raise 15% as counterpart funding of the total amount whilst the CDB shall fund the remaining 85%. To date, $225 million has been disbursed under the project. Project Benefits The Western Corridor Gas Infrastructure Project has enormous benefits to Ghana in the area of power generation, fertilizers (ammonia and urea), catalyst for industrialisation in the salt, alumina, petrochemicals such as plastics, methanol, etc. Specific benefits identified with the project in the short to medium term include; The natural gas project, especially, will o o o Generate employment Create new infrastructure to support a vibrant petroleum and petrochemical industry Provide a new economic growth pole for Ghana starting with the Western Region o Provide the opportunity for a more competitive pricing of indigenous gas Secure competitiveness of Ghanaian industry A c c e l e r a t e e c o n o m i c development Support strategic objective of becoming a petroleum processing hub Resume Ghana's strategic role as preferred exporter of power in the sub-region. LPG from the project will meet national demand and will eliminate periodic shortages o LPG will replace wood fuels and avoid deforestation Flotation of shares of Ghana Gas will ensure o o w i d e r G h a n a i a n participation in petroleum activities economic and social benefits from broadening ownership in the country's natural resources Where we sit in the Gas Value Chain 7

9 Offshore Pipeline System The offshore pipeline system consists of 14- kilometre deep water and 45 kilometre shallow water pipeline. Pipe laying works on both segments is complete. The Front End Engineering Design (FEED) and detail engineering is complete. The design for the shore approach is also complete. Offshore pipe laying in progress Onshore Pipeline System The onshore pipeline system entails the construction of a 110-kilometer pipeline from Atuabo in the Ellembelle district to Aboazi in the Takoradi metropolis, all in the Western Region of Ghana. 70% of work on the onshore pipeline is complete. Aerial view of the Gas Pipeline The Gas Processing Plant Site for the construction of the Gas Processing Plant has been acquired in Atuabo in the Ellembele district of the Western Region. The site for the Plant has been cleared, filled and civil works are on-going in earnest with about 55% complete. The Gas Processing Plant and associated components being prefabricated by Thermo Engineering Design (TDE) in Canada have started arriving at the project site for installation. The entire unit is expected to be delivered by end of June 2013 Art Work of Processing Plant Site

10 Glycol Regeneration Skid on site Core GPP units on site Civil Works Underway at GPP Site Earth Works at GPP Site

11 ACQUISITION OF PERMITS Ghana Gas has acquired some of the statutory permits from the various State Institutions for the project. The main permits are; Environmental Impact Assessment permit, construction permit from the Energy Commission, river and water crossing permits from the Water Resources Commission, Right of Way (ROW) and compulsory acquisition of land from the Lands Commission. The main permits and their status are; I. Environmental Protection Agency, Ghana E n v i r o n m e n t a l I m p a c t Assessment permit Three key permits are to be acquired for the project. The project has been registered with the agency and the relevant disclosure in the newspapers and in the catchment area have been carried out. Stakeholder consultations and engagement is on-going permit acquisitions are in various stages of completion. The EPA of Ghana requires that permits are acquired for the following project segments: A. Gas Processing Plant B. O n s h o r e p i p e l i n e system C. O f f s h o r e p i p e l i n e system II. Energy Commission of Ghana The siting committee of the Energy Commission has visited the project site, and has given their comments on the project to Ghana Gas. Ghana Gas is in the final stages of acquiring permits from the commission. III.Water Resources Commission - Ghana As required by the Commission, Ghana Gas has applied for 32- river and water crossing permits for the project. The permits are in the final stages of issuance. 10

12 Ghana Gas Community Relations Ghana Gas prides itself as an investor in people and as such considers the support of Ghanaians, especially those from the affected areas as key to the success of the project. Consequently, Ghana Gas community relations team is in the Western Region where they carry out various stakeholder engagement activities on a daily basis. This is to ensure that all community issues associated with the project are resolved in the field or flagged for further action. Figure 3. Assemda Suazo Community Engagement Compensation Ghana Gas has since paid compensation to farmers whose farms were destroyed at the acquisition of GPP site and the 111km Right of Way (ROW) between Atoabo and Aboadze (VRA). The exercise was generally successfully with over 90% of farmers expressing satisfaction over the money received and the mode of payment. Meanwhile land owners who lost their farmlands in the Right of Way (ROW) and at the GPP site are yet to be paid. Ghana Gas is working with the traditional authorities, Land Commission, the local government and the families to identify the true owners of the land so that the appropriate compensation can be paid A farmer receiving his crop compensation from officials of Ghana Gas 11

13 CREATING SHARED OWNERSHIP Ghana Gas is ensuring that local contractors and man-power as well as other goods and services from Ghana and the local communities are engaged or utilized in the implementation of the project to fulfil the local content agenda of the project. These include haulage, rental of equipment, supply of laterites, right of way clearance, geo technical studies, typographical surveys, and environmental and social impact assessment among others. Locals are also engaged in truck driving, crane operations and welding. Ghana Gas has directly hired sixty (60) Ghanaian engineers and technicians for construction supervision. Also fifty six (56) Ghanaians have been engaged as community relations officers to protect the pipeline right of way and educate the local communities on Ghana Gas activities. F u r t h e r m o r e, G h a n a G a s i s c o l l a b o r a t i n g w i t h T a k o r a d i polytechnic and Kikam Technical Institute for the training of technicians, operators, welders and pipe fitters for operation and maintenance of the pipeline. Concluding Remarks Ghana National Gas Company is an enterprise established with the sole purpose to monetize Ghana's resources, provide fuel for our power industry and also to function as a catalyst for downstream petrochemical industries. We seek to maintain the highest levels of safety, integrity and professionalism in our activities. Above all we cherish our pioneering role in ushering in a new dimension to the petrochemical industry in Ghana and we do have the motivation to fulfil our mission. Ghana Gas will continue to work diligently to ensure that the 'Ghana Gas Project' is implemented successfully to ensure a better future 12

14 Visit of Joint Ghana Fabrication Yard pec Team to TDE ary 2013 in Canada in Janu Gas and Sino Production: 10 Drake Avenue, Airport Residential Area P.O Box CT 3686, Cantonments - Accra. Tel: 233 (0) Fax: 233 (0) info@ghanagas.com.gh Website: