Siena:Yinson Production, the operator of the FPSO John Agyekum Kufuor, is set to increase gas export capacity offshore Ghana by more than 60% through the addition of new gas compression and treatment modules. Scheduled for completion by the first quarter of 2028, the US$600 million project will extend the vessel's lease until 2036. The FPSO operates in the Sankofa Field within Ghana's Offshore Cape Three Points field, managed by Italian multinational Eni.
According to Ghana Web, The initiative involves installing gas compression facilities to counter declining reservoir pressure, increasing gas export capacity from 210-220 million cubic feet per day (MMcf/d) to 355 MMcf/d. This development will impact utility tariffs and power generation costs, potentially stabilizing tariffs for consumers by reducing reliance on expensive liquid fuels like Light Crude Oil (LCO) and Distillate Fuel Oil (DFO).
However, the upgrade will heavily favor Sankofa gas, historically the costliest domestic source due to its non-associated nature. This shift will affect the national Weighted Average Cost of Gas (WACOG), as Sankofa's gas becomes more dominant in the supply mix.
The project cost will be absorbed into the vessel's operational day rate, avoiding the need for new field drilling and preventing WACOG spikes. While electricity tariffs may not significantly drop, they will become more predictable, providing a buffer against inflation and currency depreciation.
To accommodate the increased gas throughput, Ghana National Gas Company is constructing a second processing facility, Gas Processing Plant Train 2, adjacent to the existing Atuabo plant. The new plant will have a nominal capacity of 150 MMscf/d, scalable to 300 MMscf/d, and will employ advanced technology to extract up to 80% of Natural Gas Liquids (NGLs), saving the country over US$151 million annually.
The midstream expansion aligns with the offshore timeline to ensure readiness by the FPSO upgrade completion. Any delays could result in large-scale flaring. However, the project is on schedule, with necessary permits and agreements in place. Final completion and testing are expected by early 2028, coinciding with the increased gas stream from Eni.