Business News of Friday, 4 January 2019
Source: Graphic.com.gh
2019-01-04
Emmanuel Armah Kofi Buah
Former Petroleum Minister Emmanuel Armah Kofi Buah, says the New Patriotic Party administration should take full responsibility for the failure of Ghana to install infrastructure to off-take gas from the OCTP Sankofa fields for which Ghana is paying $28 million monthly.
Nana Kofi Oppong Damoah, Head of Communications and Public Affairs on Thursday had blamed the erstwhile National Democratic Congress government for failing to ensure the infrastructure was installed.
He was responding to a Graphic Online expose that had said Ghana was paying $40 million monthly as part of the OCTP agreement, particularly a take-or-pay clause that obligated the country to pay whether Ghana off-take the gas or not.
But Armah Buah, also Member of Parliament for Ellembele in the Western Region, has in a statement asked the NPP to stop pointing accusing fingers at the NDC and recover from its inertia on the project because it is “preposterous to blame the NDC for the failures of the present administration.”
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.
NPP’s FAILURE:
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.
Kofi Buah
MP Ellembele/ Former Petroleum Minister
