Business News of Friday, 4 January 2019
A former Petroleum Minister, Emmanuel Armah Kofi Buah has accused the ruling NPP government of failing to relocate the karpower badge to Takoradi.
But the government has only been interested in changing Fuel suppliers with karpower and fruitless renegotiations.
Head of Communications and Public Affairs at the Energy Ministry, Nana Kofi Oppong Damoah, in a statement on Wednesday blamed the NDC government for failing to ensure the infrastructure was installed.
He said, “the NDC signed a contract with ENI to flow 180 mmscfd in 2015. They committed Ghana to a take or pay obligation, which will be 90% of total gas produced but did not plan for the utilization of the gas nor planned for gas transportation infrastructure to flow the gas to the market.”
“The NPP realized after assuming office that such plans did not exist and Ghana would be required to pay monthly for the gas produced whether we used it or not. Since there was no plan for utilization of the gas, it meant that Ghana was going to lose millions of dollars monthly,” the statement reads further.
But the Member of Parliament for Ellembele constituency in a statement says before the NDC left office they initiated processes to interconnect the Ghana National Gas Transmission System with the West African Gas Pipeline System part of the broader Long Term vision to ensure a sustainable and reliable supply of Gas.
“This is to allow a reverse flow of gas from the West (Takoradi) to the East to serve power plants in the Tema enclave.”
Read below the Minister’s full statement
NPP’s INCOMPETENCE ON DISPLAY AGAIN-IN THE HANDLING OF ENI’s OCTP PROJECT
The NDC government in a comprehensive effort to address Ghana’s energy challenge as well as address the issue of fuel security for our thermal plants embarked on the production of indigenous gas and initiated the no flaring policy.
After the successful completion of the Atuabo gas project, the next effort was the historic ENI’S OCTP project to utilize the associated and non-Associated Sankofa gas. This project represents a game-changer in the country’s gas-to-power ambitions with about 45,000 barrels of oil per day (bopd) and 180 mmscf of Gas, enough to generate 1000 MW of power daily.
The task then was to ensure that power plants were in place and ready to receive the ENI Gas. This culminated in the process of implementing an aggressive and well-coordinated programme by contracting Thermal Plants such as the Karpowership, Ameri, AKSA, KTPP aimed at utilising the anticipated Gas to be delivered from the ENI Gas.
Before the NDC left office we initiated processes to interconnect the Ghana National Gas Transmission System with the West African Gas Pipeline System part of the broader Long Term vision to ensure a sustainable and reliable supply of Gas.
This is to allow a reverse flow of gas from the West (Takoradi) to the East to serve power plants in the Tema enclave. This initiative received cabinet approval before the NDC left office. This was so critical to ensuring that the ENI Gas was not stranded.
The NDC government also commenced the process of locating the 450MW Karpowership Badge to Takoradi to replace the 250MW Ship in Tema to off-take part of the Gas.
After two long years of inertia and procrastination, the NPP government has lost focus and failed to relocate the karpower badge to Takoradi. Instead, this government has only been interested in changing Fuel suppliers with karpower and fruitless renegotiations.
Secondly, the interconnection of the Ghana Gas pipeline and the West African Gas pipeline has also not been done. In fact, the contract for the interconnection was only awarded six months ago- The NPP government has also failed to release funds for Wapco as required, all of which has resulted in costly and avoidable delays.
It is therefore preposterous to blame the NDC for the failures of the present administration in ensuring that the infrastructure to receive the Gas is completed, which is critical towards ensuring a sustainable and reliable supply of power to the ordinary Ghanaian.
The Present government must take full responsibility and stop pointing accusing fingers at the NDC.
Ghanaians will not buy it.
MP Ellembele/ Former Petroleum Minister