ACEP raises red flag over Ghana Gas’ international deals

The African Centre for Energy Policy (ACEP) has raised issues with some agreements it says the Ghana Gas Company had signed with some international companies without following due process.

In a report released Tuesday, ACEP questioned the basis of three agreements signed by Ghana Gas.

The policy group is  asking why Ghana Gas did not provide the opportunity to other Bulk Distribution Companies (BDCs) in Ghana to bid for the project but went ahead to sign an MOU with Quantum Terminals Ltd.

According to the MoU, Quantum Terminals will build and operate an LPG holding facility with exclusive rights for 25 years and will solely market the Ghana Gas LPG in the downstream market.

Again, ACEP claims Ghana Gas solely sourced the construction of another power plant to GTG Ltd. without going through any competitive tendering process.

The Centre fears this GTG deal could prove wasteful if government gets the West African Gas Pipeline working as it has promised.The building of the GTG power generation plant is already one year behind schedule.

Furthermore, ACEP believes Ghana Gas is exporting jobs outside the country by building Liquefied Natural Gas re-gasification facility in Benin though the gas is from Ghana transported through the West African Gas Pipeline.

The Ghana Gas and Afgen has signed a Joint Venture Agreement to build this facility.

SINOPEC delays, Government pays
The policy group is also unhappy with delays by China Petroleum & Chemical Corporation (Sinopec Limited) in constructing the Gas infrastructure at Atuabo.  It estimates that SINOPEC’s delay in constructing the first phase of the Gas Infrastructure Project at Atuabo in the Western Region of Ghana has cost the country about 550 million dollars annually amounting to 2.2 billion in four years.

SINOPEC, has failed to meet several completion dates due to funding challenges and due to the difficulties in accessing the $3 billion Chinese Development Bank (CDB) loan.

ACEP is convinced this is an avoidable cost if government had taken the joint venture deal with Trinidad and Tobago or borrowed elsewhere instead of accepting the complex CDB loan. 

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