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Delivering on our promises

Energy and Petroleum

ENERGY AND PETROLEUM

The vision of the Nana Addo-led administration for Energy and Petroleum sector is to “develop a modern, diversified, efficient, and financially sustainable ‘energy economy’ that will ensure that all Ghanaian homes and industries have access to an adequate, reliable, affordable and environmentally-sustainable supply of energy to meet their needs and to support the accelerated growth and development agenda we envisage for the country”

The government has worked to improve the quality of fuel imported or produced in the country by revising the sulphur content of imported petrol from 3000 Parts Per Million (ppm) to 50 ppm. Higher quality fuel means reduction in the negative effects of emissions from the fuels and improvement in the quality of air we breathe. The government has also cleared the legacy debt owned to Bulk Oil Distribution Companies (BDC) to the tune of GH¢704.38 million. This allows the BDCs to operate efficiently and ensure there is enough supply of fuel to meet the needs of Ghanaians. To improve transparency in the management of oil and gas resources the government has created Public Petroleum Register which provides full-test copies of all petroleum agreements, licenses, permits and authorizations.

Power Sector Development and Management Programme
The availability of power is crucial for the nation’s growth and development. The government launched the Energy Sector Recovery Programme (ESRP) as part of measures for providing clear and comprehensive roadmap to restore and sustain financial viability and health of the energy sector. The government has subsequently formulated two policies; Least-Cost Fuel Procurement and Competitive Procurement of Energy Supply and Services Contracts.

The government in line with the Least-Cost Fuel Procurement has been working to ensure the nation’s power plants use cheaper fuel sources. The Karpowership which used to run on heavy fuel oil has been moved from Tema to Secondi and it has been converted to run on natural gas. The 190MW Amandi Power is also commissioned to run on natural gas and the first state of the 400MW Early Power project is nearly complete.

The Transmission System Reinforcement Project which is being undertaken by GRIDCo is aimed at improving operational reliability, security and control among others. Under this project 330kV transmission line project from Aboadze to Prestea has been completed. The Kintampo – Bolgatanga section of the 330kV Kumasi-Bolgatanga transmission line project has also been completed and energised. Also, works are at various stages of completion with respect to plans to increase power exports to neighbouring West African countries.

The government continues its project of increasing productivity and quality of life in the rural areas with the Rural Electrification Programme. Ghana’s electricity access rate now stands at 84.98% after connecting 305 communities to the national grid. The government has also been pursuing street lighting efficiency with the Regional Capital Street Lighting Project in which 250W High Pressure Sodium (HPS) lights are being replaced with LED streetlights throughout the nation. Rehabilitation and replacement is 100% complete in Kumasi and 90% complete in Accra.

ECG Private Sector Participation Programme
The ECG operated as a bulk energy trader and responsible asset owner after handing over its power distribution business to Power Distribution Services (PDS) Ghana Ltd on March 1, 2019. However, the Concession Agreement was suspended on 30th July, 2019 due to the detection of some fundamental and material breaches of PDS’ obligation in the provision of Payment Securities which were key prerequisites for the lease of assets. Government continues to search for a strategic private sector participation in ECG and for that reason is moving forward with urgency to find a suitable replacement for the PDS arrangement.

Energy Development Programme

The government has drafted a Renewable Energy (RE) Master Plan which details strategies and targets to be achieved by 2030 in a bid to reduce incidences and effects of climate change.  To reduce government expenditure on electricity, public buildings have begun the integration of solar roof top and energy efficiency interventions, starting with the Jubilee House with 912kW solar installation.

The government continues its programme for reducing dependence on kerosene as main source of lighting in rural communities by distributing subsidized solar lanterns with mobile phone charging facilities to remote communities. Furthermore, a 45kW Micro Hydropower has been constructed on the Tsatsadu River in Hohoe to provide electricity to the people of Alavvanyo-Abehenease and the surrounding villages.

 

Petroleum Sector Development and Management Programme

Total crude oil production achieved from the three producing fields (Jubilee, Tweneboa-Enyenra-Ntomme (TEN) and Sankofa-Gye-Nyame) totalled 53.63 million barrels from January to September 2019, translating to an average daily oil production of 196,429 barrels against a planned target of 196,000 barrels. A total of 35,153 million standard cubic feet (MMscf) of gas translating to average daily gas export of 128.76 million standard cubic feet (MMscf) was delivered for power generation and non-power gas users.

 

In line with the implementation of the Petroleum (Local Content and Local Participation) Regulations, 2013 (LI 2204), 65 Ghanaian companies have registered with the Petroleum Commission to participate in the upstream petroleum industry. Also two hydrocarbon discoveries; Akoma-1X and Nyankom-1X were made within the period under review from two separate blocks namely Cape Three Points (CTP) and South Deep Water Tano (SDWT) Blocks respectively.

 

The National LPG Promotion Policy

The National LPG Policy which seeks to abolish the current LPG Marketing Model and replace with the Cylinder Recirculation Model (CRM) was approved by Cabinet in 2017. The Ministry and the National Petroleum Authority (NPA) in partnership with LPG Marketing Companies (LPGMCs) and dealers agreed to pilot the Cylinder Recirculation Model (CRM) in the Obuasi Municipality and Kwaebibrem District. NPA is facilitating the procurement of about 55,000 cylinders on behalf of LPG Marketing Companies from the Ghana Cylinder Manufacturing Company (GCMC) for the pilot.

 

Under the Rural LPG Promotion Programme (RLPGPP), 17,500 cook stoves were distributed as part of efforts to promote LPG as a healthier, safer and cleaner fuel in semi-urban and rural areas as well as to reduce deforestation. This year alone, the Ministry plans to procure and distribute 60,000 LPG cook stoves to rural communities.

 

Energy Sector Regulation Programme

The government is in the process of developing a bill to establish the Petroleum Hub Development Corporation. This is part of a strategy to position Ghana as hub for the petroleum downstream industry in the West African sub-region. Furthermore, the Lands Commission has been engaged to commence the acquisition of 20,000 acres of land in the Jomoro District of the Western Nzema Traditional Area for the development of the hub enclave.

 

As part of strategies to minimize Greenhouse Gas emissions from associated energy activities and consumption through the promotion of cleaner and more efficient energy sources and usage, a Smart Energy Action Plan was developed after extensive stakeholder engagement with the Environmental Protection Agency (EPA), the Ministry of Environment, Science, Technology and Innovation (MESTI), and energy sector agencies. In addition, the Ministry developed and launched a Health, Safety, Security and Environment (HSSE) manual to guide companies in the energy space.

 

KEYNOTE SUMMARY

  • Sulphur content of fuel moved from 3,000 ppm to 50 ppm to improve quality of fuels.
  • Legacy debt of GH¢704.38 million owed to Bulk Oil Distribution Companies have been cleared.
  • Public Petroleum Register has been created to improve transparency in management of oil and gas resources.
  • The Karpowership, Amandi Power, and Early Power commissioned to run on natural gas to ensure nation’s plants use cheaper fuel sources.
  • 330kV transmission lines from Aboadze to Prestea and Kintampo to Bolgatanga completed to improve power transmission efficiency.
  • 305 rural communities connected to the national grid, brining national electricity access rate to 84.98%
  • Street lights in cities and town are being replaced with more efficient LED lights, 100% completed in Kumasi and 90% completed in Accra
  • Renewable Energy (RE) Master Plan to reduce incidences and effects of climate change developed.
  • Public buildings to be fitted with solar panels, project completed with 912kW installation at the Jubilee House
  • First 45kW Micro Hydropower plant constructed on the Tsatsadu River in Hohoe
  • 65 Ghanaian companies registered with the Petroleum Commission to participate in the upstream petroleum industry.
  • Two hydrocarbon discoveries, Akoma-1X and Nyankom-1X, have been made at the Cape Three Points (CTP) and South Deep Water Tano (SDWT) Blocks respectively.
  • 17,500 cook stoves distributed as part of efforts to promote LPG as a healthier, safer and cleaner fuel.
  • Bill to establish the Petroleum Hub Development Corporation in progress, aimed at making Ghana the hub for downstream petroleum industry in the West African sub-region.