Ecowgas wins contract to build LNG storage, regasification facilities in Burkina Faso

Energy infrastructure development company Ecowgas has been awarded a contract to build LNG storage and regasification facilities in Burkina Faso as it looks to expand its presence in West Africa, it said Nov. 4.

Ecowgas -- an affiliate of the Tema LNG Terminal Company (TLTC) that owns the soon-to-be-commissioned LNG import facility in Ghana -- had already won exclusive rights to build and operate storage and regasification facilities in Liberia and Sierra Leone.

The award of the Burkina Faso contract is based on Ecowgas utilizing the Tema LNG terminal in Ghana, which will act as a storage hub for LNG in the region.

With construction of the terminal now complete, the first LNG cargo into Tema is expected in the coming weeks, according to industry sources.

Ecowgas said that by sourcing fuel from Tema, it aims to introduce a reliable supply of LNG into the West African energy mix. "Burkina Faso now joins Sierra Leone and Liberia as the latest part of Ecowgas' regional infrastructure network," it said.

Burkina Faso demand

Burkina Faso has existing gas demand of around 25 MMcf/d, which is likely to double in the next four years, according to company estimates.

The domestic market is dominated by the supply of gas to gas-powered power stations operated by the state-owned electricity company, Sonabel, and large private sector industrial users, such as mine operators and electricity generators.

Burkina Faso's energy minister Bachir Ismael Ouedraogo said the supply of LNG would benefit industry and communities.

"LNG's introduction to our country is in line with our government's priorities to provide a platform to continue our energy transition towards a cleaner future while committing to sustainable economic growth," Ouedraogo said.

The Tema LNG terminal is expected to create a regional LNG hub with a storage capacity in excess of 180,000 cu m to serve the regional market.

Land-locked Burkina Faso could take LNG by truck given that the Ghana facility also has the ability to load LNG directly onto trucks.

It means that the need for large amounts of capital expenditure and credit costs to introduce LNG into new countries has been removed.

The West African region has a large extractive industry with an appetite for power that is currently mainly served by distillate fuels at high prices.

There is a requirement of an estimated 1 million mt/year of LNG across the region for power generation and displacement of distillates in the extractive sector.

This is expected to grow to about 1.8 million mt/year over the next decade as countries in the region invest in further generation and the transition away from heavier fuels continues.