The Ghana Gas Senior Staff Association (GGSSA) has rejected the report of the Mines and Energy Committee of Parliament on the agreement between the Ghana National Petroleum Corporation (GNPC) and Genser Energy Ghana Limited (GEGL).
The GGSSA is totally against the agreement for the combined gas and pipeline infrastructural project.
The Parliamentary Select Committee on Mines and Energy has found no evidence of any losses from a deal between the GNPC and Genser Energy Ghana Limited (GEGL), concluding an investigation into unfounded claims of irregularities.
The investigation was initiated in response to claims made by the African Centre for Energy Policy (ACEP) and the IMANI Center for Policy and Education in July 2022 alleging incorrectly that the deal incurred a loss of $1.5 billion for the nation. The Committee’s report instead found benefits for Ghana far exceeding that sum.
The ACEP and IMANI reports raised concerns over a Gas Sales Agreement (GSA) between GNPC and Genser Energy Ghana Limited (GEGL), asserting that Ghana stood to lose the “whopping and galactic sum of $1.5 billion” due to this arrangement.
The allegations raised by ACEP and IMANI claimed GNPC sold gas to Genser at significantly reduced rates compared to its purchase price, resulting in a perceived subsidy.
Following an 11-month-long investigation, the Parliamentary Committee has refuted the claims made by ACEP and IMANI, stating that the GSA is not a “sweetheart contract.”
The Committee found the computation methods used by ACEP and IMANI faulty. The CSOs calculated a hypothetical loss based on the contractual sum of $2.79/MMBtu. But that price reflects offsets from a capacity charge of $3.29/MMBtu.
The Committee found the arrangement much to the Nation’s benefit, presenting 11 key economic advantages associated with the deal ranging from energy security to job creation; from the development of future industries to foreign direct investment.
In a statement reacting to this development, the GGSA said “Its attention has been drawn to the above report addressed to the Right Honorable Speaker, dated 16th of August, 2023, currently in circulation in the media space, albeit classified as confidential.
“The Association would like to put on record our rejection of this report, expressing our disappointment in the analysis of the critical issues as captured in the report.
“The Association copiously raised concerns about the Genser deal and its consequent risk implications to the energy sector infrastructure efficient management, and further called for Parliamentary probe.”