Ghana's Gas, Questionable Deals and National Interest. How Ghana's Quest for Energy Security Faces Imminent Danger

For the past three years, the Ghana National Gas Company (GNGC or Ghana Gas) has been in the news for the right and wrong reasons. There is no doubt that the establishment of Ghana Gas brought significant relief to Ghanaians who thought that the country’s long standing desire for energy security and affordable energy services were going to be achieved. However, in the Government’s desperation to secure a cheaper source of fuel through the development of indigenous gas resources, the institutions involved in this process threw caution to the dogs. Ghana Gas has not escaped public anger for its alleged involvement in several contracts without due process, including for instance the sole sourcing of contracts to SINOPEC, Quantum Terminals Ltd. and Africa Power Generation Ltd. (Afgen). Ghana Gas has been accused of signing these contracts without following requirements in the Public Procurement Act 2003 (Act 663), entering into international agreements without parliamentary approval and causing to be granted to SINOPEC tax exemptions outside the parliamentary process. 

It is important to take note of the denials of these allegations by Management and the Board of Ghana Gas, even though in most cases, such denials have not been forceful. These and many others cited on the Ghanaian media have somehow waned public confidence in the rationale behind the establishment of the company. In this analysis report, we sought to examine the various issues in contention and to draw attention to the implications for Ghana; and as well as to propose some recommendations.

The Africa Centre for Energy Policy (ACEP) was established in 2010 to contribute to development of alternative and innovative policy interventions through high-quality research, analysis and advocacy in the energy and extractives sector in Africa.

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