Gov’t urged to prevent gas shortage as Tullow starts maintenance shutdown

Government is being urged to take swift action to prevent potential natural gas shortages following Tullow Ghana’s commencement of a 16-day maintenance shutdown on the Jubilee oil field today.

Market analysts within the energy sector warn that the temporary halt in production could lead to a deficit of approximately 50 to 90 million standard cubic feet of natural gas per day, potentially impacting power generation and industrial activities.

Speaking to Citi Business News, Executive Director of the Centre for Environmental Management and Sustainable Energy, Benjamin Nsiah, cautioned that without timely intervention, the shutdown could exacerbate Ghana’s energy challenges.

“FPSO Kwame Nkrumah is one of the major suppliers of natural gas for our power generation locally and if it is going to go through a maintenance process for 16 days it means that we are going to have some amount of shortfall in the supply of natural gas,” he said.

He added that :”So what it means is that as a country we need to have some sort of funding or financing available to continue to procure emergency fuels which are also quite expensive and this also balloon the expenditure at the time government also needs revenue to offset the liabilities in the sector.”

He emphasized the need for alternative supply arrangements and strategic planning to mitigate any disruptions.

“We must be proactive  because if we don’t take steps and if this maintenance begins and we don’t have any other fuels available then we are likely to experience dumsor.”

Citi Business News understands that the  government has reportedly reached an agreement with Tullow Ghana to temporarily source gas from the TEN fields during the maintenance period.

However, analysts argue that additional measures, such as optimizing domestic production and exploring LNG imports, may be necessary to ensure energy security.

Meanwhile,  the oil and gas exploration company has explained that the shutdown forms part of long-term efforts to extend the operational life of the FPSO and is a precursor to a mini-drilling campaign scheduled for May 2025.

With Ghana’s energy sector already facing financial constraints, stakeholders are closely watching how authorities navigate this critical period to maintain stability in the power supply.

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