Prez. Akufo-Addo secures gas deal with Equatorial Guinea

• Posted on August 23, 2017
• by Nana Kwesi Coomson
• Comment

President Akufo-Addo is hopeful of striking a 15-year deal with the government of Equatorial Guinea for the supply of Liquefied Natural Gas (LNG) to Ghana.

This is intended to augment domestic supply of the product.

He made the revelation at a state dinner held in his honour by his colleague President Teodoro Obieng Nguema Mbasogo of Equatorial Guinea on Monday.

In June 2017, the Ministers of Energy of the two countries signed a Memorandum of Understanding (MoU) in relation to the supply of LNG from Equatorial Guinea.

“My presence here is a consummation of this bilateral agreement, and represents a significant step towards matching Equatorial Guinea’s excess gas supply to Ghana’s ever growing demand,” Nana Addo articulated.

President Akufo-Addo continued, “It is my expectation that during this visit, we shall sign a government-to-government Heads of Agreement for the supply to Ghana of LNG from Equatorial Guinea, for a period of 15 years, reviewable every five years. If cocoa was the first seed to nourish the relationship between our two countries, gas is going to be the second.”

The MoU provides that Equatorial Guinea will supply the equivalent of 150 million standard cubic feet of natural gas per day to Ghana. It also provides for the building and operation of an LNG regasification terminal in Takoradi.

The three-day visit is also intended to strengthen the bilateral ties that exist between the two countries, as well as explore areas of co-operation to the mutual benefit of their respective peoples.

According to President Akufo-Addo, at the diplomatic level, the two countries have maintained strong relations for several decades, adding that he is following in the footsteps of three of his predecessors in the 4^th Republic, who also paid official visits to Equatorial Guinea.

“They have laid a solid foundation for the relations between our two countries, on which, with God’s help, I am hoping to help build a bright future of cooperation,” he said.

With the last meeting of the Permanent Joint Commission of Co-operation between the two countries held in Accra in 2010, President Akufo-Addo was hopeful that his visit to Malabo would re-commence the formal sessions of the Commission – the last one of which was held in Accra.

The president was therefore keen on reviving the Air Services Agreement, and re-establish direct flights between Accra and Malabo. His government, he added, has also committed itself to expanding the Tema Port into a trans-shipment hub to improve sea trade within Africa.

Continental Integration

With Ghana and Equatorial Guinea being two important members of the Africa Union (AU), President Akufo-Addo indicated his willingness to do whatever he can to strengthen the AU.

“I believe it is extremely important for the welfare of the 1.2 billion people of the continent that we, the leaders, demonstrate strong political will to make the AU an economic and political success, and to make the project of integration real. I am fully committed, and I know President Teodoro Obiang Nguema Mbasogo is, too,” he said.

The fact that Africa’s population is projected to reach about 2 billion people in 20 years’ time, according to President Akufo-Addo, presents immense opportunities to Africa, with hard work, enterprise and creativity.

“The time for African integration is now. Ghana and Equatorial Guinea should be at the forefront of the process that will convert the AU into a true continental market hence, the importance of the success of the Continental Free Trade Area. A working, common continental market has to be a very fundamental objective of all peoples and governments on the continent,” he charged.

By Charles Takyi-Boadu, Presidential Correspondent