Business
Ghana readies plans and financing for natural gas extraction
Ghana Off-shore oil and gas blocks. Source/Afren
Policy makers have finally settled on a master plan and financing package that provide the framework for the exploitation of natural gas reserves from the Jubilee field.
The government of Ghana has been touting the benefits of its long awaited oil production for years, but governmental infighting and uncertainty delayed the kick-off for an important part of the country’s industrial infrastructure.
Commercial oil production, which started in December 2010, should increase government revenue by US$762m in 2012, and associated gas projects are set to provide industrial projects and miners with a cheap and plentiful supply of energy.
The government was slow to set out the guidelines for the gas industry. A lack of clarity in the mandates of the Ghana National Gas Company (GNGC) and the Ghana National Petroleum Corporation (GNPC) contributed to the delays, which could have led companies to be allowed to develop their own plans for the gas.