Ghana, Equatorial Guinea to sign LNG deal

Ghana's President Nana Akufo-Addo

ACCRA (Reuters) – Ghana’s President Nana Akufo-Addo plans to sign an agreement to import liquefied natural gas (LNG) from Equatorial Guinea during his three-day visit to the Gulf of Guinea due to begin on Monday, his office said.

Though an oil and gas producer in its own right since its flagship Jubilee field came on stream in 2010, Ghana has in the past struggled to ensure reliable power production for a growing domestic market.

Equatorial Guinea, meanwhile, is exploring the possibility of selling a portion of its LNG cargos to its African neighbours.

The statement from Akufo-Addo’s communications director said the president was expected to sign a framework document with his counterpart President Teodoro Obiang Nguema to import LNG from Equatorial Guinea for five years.

“The execution of this agreement is intended to augment domestic supply over the period, and improve further the power situation in the country, both for local consumers and industry,” the statement said.

The deal is part of a broader strategy by Ghana’s government to boost supplies to fuel power plants.

The acting head of Ghana National Petroleum Corporation (GNPC) said in June it was in the market for between 250 million and 500 million cubic feet of gas per day and expected to begin importing LNG early next year.

Italian oil company ENI last month launched production from its Sankofa field offshore Ghana, the first phase of the $7.9 billion Offshore Cape Three Points project.

The project aims to deliver up to 180 million cubic feet of natural gas per day by the end of next year, more than doubling current domestic gas supply.