In Ghana the Volta River Authority (VRA) has launched discussions with more than one foreign LNG producer regarding the possible supply of LNG to Ghana.
The VRA is looking to fuel its power plants with LNG.
Kofi Ellis, head of business development at the VRA said in an interview with Graphic Business, “We need to do it well because the LNG supplier produces that commodity at a high cost. So, he or she wants to be sure that whoever is taking it doesn’t come for it and say tomorrow that I don’t need it again.”
“For instance, if you enter into a 10-year supply contract and within the 10 year period, economic conditions change. The question is: Are you going to continue paying for it? These are big decisions that you need to think through before you take the step rather than jumping in and before you realize, you don’t need it anymore,” Ellis added.
At this time the VRA has no LNG supplier and indications are that the current move would help diversify the country’s gasto- electricity mix from the local market to external sources, where imported LNG would complement processed gas from the Atuabo Gas Plant.