State-run Ghana Gas Company Limited (Ghana Gas) has signed a memorandum of understanding with the African Power Generation Limited, an affiliate of UK-based Gasol Plc, for the development of specific projects aimed at providing additional gas to the country.

The pact signed was to assure Ghana of longer and secured gas supply needed to address its power generation deficit leading to the electricity rationing.

Ghana, in recent times, has been experiencing frequent power cuts due to the inability of West African Gas Pipeline Company (WAGPCo) to supply gas to the country from Nigeria. WAGPCo, operator of the West African Gas Pipeline (WAGP), shut down its operations last August 2012 as a result of vandalized pipelines in Lome, Togo.

Under the MoU, Gasol on February 28, 2013 said its AfGen and the Ghana Gas proposed amongst others to “explore the establishment of various joint venture arrangements for the supply of imported natural gas, into Ghana as well as the downstream sale and marketing of gas to power generators and industrial/mineral processing enterprises in Ghana”.

Commenting on the move, COO at Gasol, Alan Buxton said “We are very pleased that Ghana Gas has agreed to explore collaboration with AfGen in a broadly defined partnership, including the importation and supply of non-indigenous gas to customers in Ghana, thereby assisting in bridging the Ghanaian gas deficit for power generation.

By Ekow Quandzie