Why Ghana must expand the use of natural gas

The global economy is changing rapidly since the Ukraine war and Ghana must be ready to take advantage of the transition.

From the steam engines floating the oceans to explore the world, to jet fuel engines soaring the skies for global reach, and to diesel engines powering the global economy.

The energy evolution to renewables is speeding up since Russia’s invasion of Ukraine. The investment in renewable energy globally in 2022 has so far increased by 8% compare to only 3% in fossil fuels.

Europe is accelerating its plans to reduce fossil energy sources by ramping up energy efficiency and the use of renewable energy sources in order to wane off Russia’s oil and gas. They are witnessing a wave of multi billion Euro investment in renewable energy.

The European Union is heavily reliant on Russia for its energy needs, with Moscow supplying approximately 40 percent of the bloc’s natural gas last year. They depend on the fuel to power industry, generate electricity and heat homes.

Since the sanctions by the west due to the invasion of Ukraine by Russia, President Vladimir Putin has repeatedly warned that his country’s supply of natural gas to Europe could see dramatic cut.

Russia is no longer reliable source of natural gas to Europe. It has reduced gas deliveries everywhere in Europe and always citing technical challenges caused by sanctions from the west.

As winter looms in Europe, there’s a lot of anxiety about the supply of natural gas for heating homes and some of the European countries are considering rationing natural gas.

Ghana should take advantage of the situation and build LNG (Liquified Natural Gas) conversion plants to supply natural gas to Europe for premium price. In the upcoming years the European Union will be looking for alternate source of natural gas to replace Russian gas—Ghana is well positioned to make a business case to supply the gas to the Europeans.

Instead of expanding the use of natural gas in the country, it’s more economically profitable to ramp up more renewable energy in our power generation mix and sell the gas to Europe to help our ailing economy. It’s very important as a nation to be strategic as the world marks the beginning of an evolution into the new energy economy.

 

Writer: Benjamin Amponsah Mensah