NATURAL GAS KEY RESOURCE FOR THE FUTURE OF ELECTRICITY SECTOR IN GHANA

Transcription

1 NATURAL GAS KEY RESOURCE FOR THE FUTURE OF ELECTRICITY SECTOR IN GHANA B. KOFI ELLIS Director, Planning & Business Dev.

2 REPUBLIC OF GHANA Total land area - 240,000 sq km Population million (65% Rural & 35% Urban) GDP per Capita (2012) - US$ 6.7% Electricity Penetration - 70%

3 PRESENTATION OUTLINE OVERVIEW OF POWER SECTOR GROWTH OF THE POWER SECTOR FUEL REQUIREMENT & THE ROLE OF GAS FUTURE OUTLOOK CONCLUSION

4 STRUCTURE OF THE POWER SECTOR Generation VOLTA RIVER AUTHORITY Hydro (1180MW) Thermal (922MW) Solar (2 MW) Sunon Asogli Thermal (200MW) BUI Hydro (400MW) CENIT Thermal (110MW) POWER EXCHANGE (Cote d'ivoire) Transmission GHANA GRID COMPANY (GRIDCO) - 161kV, 225kV and 330kV Distribution ECG (1500 MW) NEDCO (160 MW) MINES (225 MW) VALCO (70 MW) OTHER BULK CUSTOMERS (104 MW) EXPORT (Togo, Benin and B Faso) (139 MW) Bulk Customers 4

5 Akosombo Hydro Plant Solar Power - Navrongo INSTALLED CAPACITY Takoradi Thermal Plant Hydro (VRA) MW Hydro (non VRA) MW Thermal (VRA) MW Thermal (IPP) MW Solar (VRA) - 2 MW TOTAL MW

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7 DEMAND OUTLOOK Over The Long Term ( ) Demand is Projected to Grow at an Average Of 7%. Aluminium Industry Will Need Additional Power To Operate At 100% Capacity - (Not Factored In) Energy Consumption Is Projected to Increase From 11,400 GWH In 2012 To 23,200 GWH In 2021 Power Demand Is Projected To Grow From 1,750 MW In 2012 To 3,300 MW In

8 GENERATION EXPANSION PLAN CAPACITY BALANCE (MW) 8

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10 FUEL FOR THERMAL POWER PLANTS

11 GAS SUPPLY WEST AFRICA GAS PIPELINE PROJECT

12 The Rationale of the West African Gas Pipeline Project was to put in service stranded resource (Natural Gas) in Nigeria for the economic development of the Region The Gas Pipeline Capacity Initial: 190 mm SCFD Capacity Ultimate: 450 mm SCFD Mali Niger Length: 620 km Burkina (560 km Faso offshore) Estimated Total Cost: $ mm GHANA T O G O B E N I N NIGERIA Escravos-to-Lagos Pipeline System Capacity: 800 mm SCFD

13 The West Africa Gas Pipeline Project has been completed and in operation GHANA TOGO BENIN NIGERIA Takoradi R+M Station Tema R+M Station Lome R+M Station Cotonou R+M Station Alagbado Tee Tie-in on ELPS Lagos Beach Comp Station ELPS Pipeline Offshore Mainline Project sponsors (Chevron, NNPC, Shell and VRA) takes FID in 2004 Off-Shore Pipeline construction starts in December 2005 Off-Shore Pipeline completed in December 2007 Free Flow gas starts flowing in April 2009 Compressors installed and commissioned in March 2011 Contractual volume of 123 MMscf/day expected in Sept. 2011

14 Erratic Nature of Gas Supply 14

15 BENEFITS OF NATURAL GAS USE AS FUEL Light Crude Oil (LCO) prices are high & volatile and its purchase costs VRA about US$3m per day. Natural Gas is a cleaner and cheaper fuel for thermal power generation. WAGP Gas costs approximately US$8.42/MMBtu and this translates to about US$1.5m per day for VRA This therefore offers substantial savings of about US$2m per day for VRA. The maintenance regime for thermal plants when using natural gas is longer (about twice) as compared to LCO 15

16 COMMERCIAL CHALLENGES High Financial Challenges with the use of Crude Oil in Electricity Production In 2012, VRA spent GH 1,276 million on purchases of LCO and Natural Gas. Estimated Fuel purchases for 2013 is GH 1, million ($750 million). As at June 2013, VRA was buying a cargo of Crude Oil (450,000 barrels) every 14 days. About US$50 million every 14 days. With Gas supply resumption in July 2013, this has improved to 30 days 16

17 GAS SUPPLY GHANA JUBILEE FIELDS

18 Jubilee Field General Overview Jubilee Field Unit is situated in Deepwater Tano (DT) and West Cape Three Points (WCTP) blocks; approximately 60km offshore Ghana and 130km southwest of the port city Takoradi which will provide shore base infrastructure Water depth within the Jubilee Field Unit area ranges from 1,000 to 1,700 m

19 19 The Western Corridor Gas Infrastructure Project

20 PIPELINES UPDATE ON TECHNICAL ISSUES The on-shore pipeline is about 90-95% complete. All joints have been completed All river and road crossings have been completed Trenching of the pipeline is ongoing. About 30km have been trenched. Off-shore line is completed PROCESSING FACILITIES/R&M STATIONS Back filling of both Gas Processing and R&M Station sites have been completed Concrete pilling is ongoing at both sites. GNGC has taken delivery of some of the Gas Processing equipment Factory Acceptance Tests (FAT) on metering skids for the R&M Station have been completed. 20

21 UPDATE ON COMMERCIAL ISSUES GNGC is awaiting transfer of ownership of gas from GNPC and cannot therefore enter into and execute a GSA with VRA or any other interested parties. Heads of Terms has been issued to GNGC. GNGC s Gas Pipeline is expected to be ready to deliver first gas by first quarter, Expected Gas Supply Quantities to VRA is mmscfd for a base case scenario. 21

22 GHANA GAS PROJECT SITE PORTIONS OF OFF-SHORE PIPELINE 22

23 GHANA GAS PROJECT PORTION OF ONSHORE PIPELINE WORKS TIE-IN TO VRA PIPELINE 23

24 GHANA GAS PROJECT SITE AS AT JUNE, 2013 Foundation Construction for Spherical Tank A at Gas Processing Plant Foundation Construction for Fire Fighting Tank B 24 at Gas Processing Plant

25 GHANA GAS PROJECT SITE AS AT JUNE, 2013 De-butanizer De-ethanizer Two towers erected on GPP site 25

26 ARTIST IMPRESSION OF ATUABO GAS PROCESSING PLANT 26

27 FUTURE FUEL SUPPLY FOR THERMAL PLANTS

28 SK9 East HSE: Safety KPI s Ghana: Existing Thermal Power Plants & Pipelines Ongoing/Possible Actual Nom. Capacity: 1264 MW 286 MMScfd Ongoing project: +330 MW +60 MMscfd MMscfd CÔTE D IVOIRE Feasib. study Domunli VRA - CCGT MW 450 TE MMscfd * 74 N. Tano Sanzule GNGC Plant Domunli Atuabo Prestia OCGT MW 450 By : TBD MMscfd * km Aboadze MW Takoradi 3X CCGT -VRA MW 132 CCGT Start up 25 Feb 13 MMscfd * 30 Sun Asogli Exp 360 CCGT TBD By MMscfd * 60 Kpong VRA - CCGT MW 220 By 2015 MMscfd * 60 Accra Tema Kpong (Cenpower) - CCGT MW 220 By 2015 MMscfd * 60 Kpong (KTPP) CCGT 76% Africa Finance Comp Cenpower Generation Co. Ltd + Infraco Ltd Project: M$ - 2Y Constructor Ebbe Hamilton Block 1 Construction began in April 2013 eni 100% Dual Fuel: Natural Gas & Diesel (2 x 110 MW Alstom) 20 Y Purch. Agreem (Nov 12) with ECG (Electr. Comp. of Ghana) Block 2 eni 100% W Tano Ebony 1 Takoradi TEN Enyenra Wawa-1 Tweneboa 1 Ntomme 3 Teak Sankofa GN Banda 2A/ST SE SK9E DWTano SE Tullow 1A S E 1 SK7b Jubilee Paradise Odum OCTP Rel km OCTP 2A 694 sqkm Amandi IPP CCGT MW by MMscfd * TICo Exp T2 - CCGT MW 110 by 2014 MMscfd * - TICo T2 Exp Conversion to CC without additional fuel 335 M$ Project financing (80 M$ by Int. Fin. Corp. Member of the world bank, 60 M$ from African Dev. Bank etc) sponsored by Abu Dabi National Energy Company (TAQA) EPC (260 M$) awarded to Mitsui + Kepco (Korea). Construction started in Commissioning by 2014 Ongoing Possible/envisaged Add. Thermal Capacity Nominal Capacity MW 330 Gas MMscfd * 60 28

29 GHANA NATURAL GAS DEMAND - SUPPLY PROJECTION (mmscf/d)- (BD-BN-BG) Takoradi Thermal (Tapco) Takoradi Thermal (Tico) VRA Tema Thermal I Sunon Asogli Plant VRA Siemens Plant Mines Reserve Plant Takoradi 3 Plant Cenit Plant Kpone Thermal VRA_Domunli Osagyefo Barge Cen Power Plant Takoradi 3 Expansion Additional Generation WAPP (Domunli) WAPP (Maria Glata) Non-Power Industries VALCO Plant Agric Sector TOTAL DEMAND Demand - POWER GAS SUPPLY West Africa Gas Pipeline Additional WAGP Gas Ghana Gas & Jubilee Partners Chevron (Interruptible) Chevron (Firm Supply) TOTAL SUPPLY SURPLUS / (DEFICIT) SURPLUS / (DEFICIT)-POWER

30 NATURAL GAS DEFICIT OVERALL GHANA (MMscf/day) BD-LG-LN BD-BG-LN BD-LG-BN BD-BG-BN BD-LG-HN BD-BG-HN BD-HG-LN BD-HG-BN BD-HG-HN BD Base Case Demand BN Base Case Supply (Nigeria) LN Low Case Supply (Nigeria) HN High Case Supply (Nigeria) BG Base Case Supply (Ghana) LG Low Case Supply (Ghana) HG High Case Supply (Ghana) 30

31 NATURAL GAS DEFICIT POWER (MMscf/day) BD-LG-LN BD-BG-LN BD-LG-BN BD-BG-BN BD-LG-HN BD-BG-HN BD-HG-LN BD-HG-BN BD-HG-HN BD Base Case Demand BN Base Case Supply (Nigeria) LN Low Case Supply (Nigeria) HN High Case Supply (Nigeria) BG Base Case Supply (Ghana) LG Low Case Supply (Ghana) HG High Case Supply (Ghana) 31

32 GHANA NATURAL GAS DEMAND - SUPPLY PROJECTION (mmscf/d)

33 THE LIQUEFIED NATURAL GAS (LNG) OPTION 33

34 THE LNG PROJECT On-Shore Infrastructure FSRU 34

35 BACKGROUND OF LNG PROJECT VRA has been investigating the possibility of procuring Liquefied Natural Gas and re-gasifying to complement current and forecasted gas deficits. VRA initially sought to select a suitable company or consortium who would; Source and supply LNG of an appropriate quality Provide the facilities to receive, store and re-gasify LNG to reliably meet the VRA s power generation demands Deliver 50 MMscf/d of re-gasified LNG to VRA for 5 years Initial delivered price provided by the two shortlisted bidders were US$17/MMbtu (about US$100/bbl of LCO equivalent ). 35

36 THE NEXT STEP Initial tender issued was cancelled since the indicative price bids for the entire value chain would have been economically unsustainable. The delivered price was high because the cost of infrastructure was amortized over the 5-year contract period. Also, uncertainty in the site conditions for the location of the FSRU escalated the cost of gas delivery New strategy was adopted. The entire LNG Project was broken into three (3) components namely; LNG Sourcing, FSRU Charter Import Infrastructure Facilities Ghana intends to build the Onshore Infrastructure and a feasibility study to determine exact location has been commissioned 36

37 THANK YOU 37