{"id":1252138,"date":"2022-11-16T19:29:18","date_gmt":"2022-11-16T19:29:18","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/11\/16\/botched-tema-gas-deal-can-cause-1-5bn-loss-to-ghana\/"},"modified":"2022-11-16T19:29:18","modified_gmt":"2022-11-16T19:29:18","slug":"botched-tema-gas-deal-can-cause-1-5bn-loss-to-ghana","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/11\/16\/botched-tema-gas-deal-can-cause-1-5bn-loss-to-ghana\/","title":{"rendered":"Botched Tema gas deal can cause $1.5bn loss to Ghana"},"content":{"rendered":"<p><\/p>\n<div>\n<p>A group of African think tanks and Civil Society Organisations (CSOs) has called for the suspension of the Tema LNG project.<\/p>\n<p>In a statement, the group convened by the Africa Centre for Energy Policy (ACEP) and the IMANI Center for Policy &#038; Education (IMANI) said the deal was botched and could cost a $1.5 billion loss to Ghana.<\/p>\n<p>They also called for the public release of all contracts and related agreements entered into by Ghana National Petroleum Corporation in relation to the Tema LNG project, as well as a halt to further funding and financing for the project.<\/p>\n<p>Giving background to these calls, the CSOs held deliberations on the <em>virtual sidelines of<\/em> COP 27 on 9<sup>th<\/sup> November 2022 and launched case studies intending to show how corruption, mismanagement and onerous off-take terms, have hampered the strategic flexibility of African governments.<\/p>\n<p>This has been done by saddling them with mounting debts and poor response choices.<\/p>\n<p>The first brief looked at the Tema LNG Terminal (Tema LNG), which is a project led by Helios Investment Partners to import LNG into Ghana.<\/p>\n<p>The project was expected to start operations in 2020 but as of November 2022, it is still not online.<\/p>\n<p>\u201cTema LNG poses a major risk to the already strained finances of GNPC. Calculations by ACEP and IMANI suggest GNPC could be paying between $790 million \u2013 $1.357 billion a year (based on average 2022 Brent crude prices) for gas the country doesn\u2019t need,\u201d the group said in the statement.<\/p>\n<p>It also noted that the Tema LNG project was marred by \u201cperverse bid-rigging and attendant procurement irregularities have heightened the corruption risk associated with the project.\u201d<\/p>\n<p>The group lamented that these \u201ccostly investments\u201d in oil and gas have been backed by the international community.<\/p>\n<p>\u201cDevelopment finance institutions have spent at least US$2.8bn in direct project finance to support the development of upstream and downstream fossil fuel projects in Ghana since 2010. Meanwhile, Ghana\u2019s vast renewable energy potential has generally been overlooked.\u201d<\/p>\n<p><strong>Read the full brief <\/strong><strong>here<\/strong><strong>.<\/strong><\/p>\n<p><div class=\"youtube-embed\" data-video_id=\"iVcKIlisATM\"><iframe loading=\"lazy\" title=\"GNPC blames government indebtedness for its financial problems | Business Dashboard\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/iVcKIlisATM?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A group of African think tanks and Civil Society Organisations (CSOs) has called for the suspension of the Tema LNG project. In a statement, the group convened by the Africa Centre for Energy Policy (ACEP) and the IMANI Center for Policy &#038; Education (IMANI) said the deal was botched and could cost a $1.5 billion [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1252140,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[],"class_list":["post-1252138","post","type-post","status-publish","format-standard","has-post-thumbnail","category-politics"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1252138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1252138"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1252138\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1252138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1252138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1252138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}