Ghana Secures $800 Million Gas Loan From China

The Ghanaian government has secured $800 million Chinese loan to be used for the development of gas infrastructure in the country, the deputy minister for finance and economic planning said Friday, months after the country became Africa’s newest major oil producer.

“An agreement has been reached and we have secured $800 million (560 million euros) from the Chinese Development Bank for the project to take off,” George Sipa-Adzah Yankey said on Friday, months after the country became Africa’s newest major oil producer.

The project, which is expected to get underway at the end of this month, would produce first gas at the end of next year or early 2013. The facility is expected to produce 120 million cubic feet of gas, but initially the company doesn’t intend to export any of the gas produced, he said.

In recent months Ghana has suffered from severe shortages of liquid petroleum gas due to capacity constraints at the Tema refinery.

Earlier this week, Emmanuel Armah-Kof Buah, the deputy energy minister, said the shortage has been due to increased use of gas in the country. “LPG usage, as of the year 2008 was 5,000 metric tons a week, but now it has increased to 8,000 metric tons a week and over 250,000 metric tons a year, hence the shortage in supply,” he said.

Leave a Reply