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GE, Endeavour Energy enter LNG negotiations with Shell

LNG Industry,

GE, Endeavour Energy, Eranove and Sage Petroleum have agreed a supply term sheet with Shell, and have entered into supply and purchase (SPA) negotiations regarding the long-term supply of LNG for the Ghana 1000 project.

Ghana 1000

The Ghana 1000 project is an integrated gas-to-power project that will consist of 1300 MW to be delivered in two phases: a floating storage and regasification unit (FSRU) and related infrastructure necessary to import LNG. It will generate reliable power for Ghana as well as help lower the cost of power for the country by up to 35% when compared to power generated from light crude oil.

The first phase of the Ghana 1000 project is expected to be completed in late 2016 and will add 125 MW to the grid. This will increase to 750 MW by 2018 and 1300 MW within five years.

LNG supply

Commenting on the supply agreement, Leslie Nelson, CEO of GE Ghana, said: “We are delighted to have reached agreement with Shell on the key parameters of a long-term LNG supply arrangement and have entered into exclusive discussions on a long-term LNG supply for the Ghana 1000 project. Securing a reliable, flexible and affordable LNG supply arrangement is a critical piece of the puzzle to make this project a reality.”

CEO of Endeavor Energy, Sean Long, added: “Shell is the world’s leading LNG supplier and has demonstrated the capability to offer innovative and collaborative solutions for the needs of a transitioning power market such as the one developing in Ghana. Importing LNG offers tremendous flexibility for Ghana to manage its power fleet. As a lower cost alternative to light crude oil, LNG can be used not only on a long-term basis for new power projects, but can be imported on a spot basis to balance any short-term disruptions from Ghana’s domestic gas production or from diminished hydro production in years with low rainfall.”

Local operations

Nelson also disclosed that Sage Petroleum is the latest entrant to join the Ghana 1000 consortium and will play a key part in its success. “Sage joining Ghana 1000 fulfils the consortium’s commitment to ensure localisation of operations in Ghana.”

In February 2015, Endeavor Energy and GE announced the signing of an agreement with Excelerate Energy for the reservation of an FSRU that will provide storage and regasification of LNG for the Ghana 1000 project.

Adapted from press release by Katie Woodward

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