Energy & Utilities
From The Report: Ghana 2019
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The discovery of large offshore oil reserves has had a significant impact on the national balance sheet, with shipments of crude oil representing the second-largest export category in 2017 after gold. Ghana is a relative newcomer to the global hydrocarbons industry, and with proven oil reserves of around 660m barrels and an output of about 126,000 barrels per day, it is a small producer by regional standards, but there is considerable potential for growth. The ongoing expansion of commercial operations into new reserves has led some commentators to identify Ghana as the world’s next oil hotspot, raising hopes that the export of oil and its derivatives can sustain a new era of economic prosperity. Moreover, there are a number of developments to boost the supply of gas feedstock to Ghana’s thermal power stations in the short term, such as the offshore Sankofa field. While these developments are welcome, the principal challenge faced by the sector’s governing bodies is the successful resolution of the payment backlog, which could inhibit much-needed private sector investment. This chapter contains interviews with Paul McDade, CEO, Tullow Oil; and Jonathan Amoako-Baah, CEO, Ghana Grid Company.

Articles from this Chapter

Overview

New era: Traditional energy sources begin to be replaced by oil and gas, while the renewables segment also shows potential for growth
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Ghana’s energy sector is in a moment of transition. In 2017 oil was the largest source of energy in the country, at 42.5%, closely followed by biomass at 40.6%. This mainly consists of the firewood that has historically been used to heat homes and small businesses. While some traditional energy sources remain popular, new developments are overturning old consumption patterns elsewhere in the sector. Most notably, the discovery of large offshore oil reserves has had a significant impact on the national…

Analysis

Moving forward: The refining industry attempts to overcome challenges to meet domestic demand and establish itself as a regional centre
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The main benefit of a domestic refining industry is that value is maintained in country, reducing the need to import expensive refined products from elsewhere. This benefit is particularly pronounced with complex refineries, which produce high-value products, such as petrol, and middle distillates, such as home heating oil for the domestic market. Over recent decades, advanced economies have been weighing up the advantages and disadvantages of domestic refining against importing from abroad, taking…

Interview

Big rewards: Paul McDade, CEO, Tullow Oil, on increasing investment security and nurturing strong relationships between players
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Interview :Paul McDade How would you evaluate the current West African hydrocarbons extraction landscape? PAUL MCDADE: West Africa is a very important contributor to the global oil market. A key factor that distinguishes the region is the diversity in the maturity of its oil basins. From established deepwater sites in Nigeria to significant new finds in Ghana, the full life cycle of basins is available in relatively close proximity. This variety is valuable because it permits varied operations.…

Analysis

On the rise: Solar lamps and panels become more widespread thanks to a mix of government initiatives and foreign investment
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Ghana’s bid to increase the nation’s solar capacity is taking place across a number of fronts. Most of this capacity is derived from the 20-MW photovoltaic (PV) plant operated by independent producer BXC Ghana. The government has expressed its determination to end reliance on kerosene lanterns in rural regions – which are known to be particulate polluters and contributors to global warming – and replace them with new solar-powered equivalents. In this initiative, the government’s approach…

Overview

Generating momentum: Plans to improve connectivity and gas supply hope to help boost the power sector and increase export potential
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The expansion of the oil and gas sector adds momentum to a trend that has seen Ghana move from traditional forms of energy, such as firewood and charcoal, towards energy provided by the national grid. The share of biomass in Ghana’s energy mix declined from 52% of total primary energy supply in 2009 to 37% in 2016. Conversely, Ghana’s grid-supplied energy usage has increased, and at the end of 2017 the nation had an installed generation capacity of around 4310 MW. Thanks to this, Ghana has one…

Interview

Going to market: Jonathan Amoako-Baah, CEO, Ghana Grid Company (GridCo), on political stability and establishing a new regional network
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Interview :Jonathan Amoako-Baah How can investment be tailored to meet the increase in demand for electricity? JONATHAN AMOAKO-BAAH: The increase in electricity demand can be attributed to industrial growth, real estate development and increased economic activity. Energy growth over the last five years has averaged about 7-10%. Investment must match this increase in demand, which is not always easy in a low-liquidity market such as Ghana. We are successfully working to avoid the emergency…