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Ghana Gas Senior Staff Association Rejects Committee Report on GNPC/GEGL Deal

Accra, 21st August 2023 – The Ghana Gas Senior Staff Association (GGSSA) has expressed its disappointment with the analysis presented in the Committee on Mines and Energy’s report regarding the GNPC/GEGL deal. The Association has raised concerns about the Genser deal and its potential risks to the efficient management of the energy sector infrastructure. They have also called for a parliamentary probe into the matter.

In a press statement, the GGSSA highlighted several discrepancies and issues with the Committee’s report. They noted that the summary of the Energy Commission’s testimony was not included in the report, despite being referenced in clause 7.3. Additionally, they pointed out that the submission captured under clause 7.4 contradicted the testimony summary under clause 5.1.8, which stated that the gas cost GNPC nothing until 31st December 2022.

The GGSSA also raised concerns about the analysis of the delivery point of gas to Genser and the need for GNPC to buy pipeline capacity. They argued that if GNPC had to deliver the gas to the off-take point, Genser should pay for the transportation service cost. They further questioned the justification for buying pipeline capacity to the tune of 130mmscfd under “free flow” and raised concerns about the surcharges imposed by Genser.

Furthermore, the Association disagreed with certain assertions made in the report, such as suggesting that certain companies did not have to pay for gas transportation costs and questioning the financing structure and strategy proposed by Genser.

The GGSSA emphasized that their opposition to the GNPC/GEGL deal is not against private participation but rather aimed at protecting the interests of Ghana and all industry stakeholders. They believe that the main transmission pipelines should not be under the control of a private player as they are vital national security assets. They called for the engagement of global industry experts by the Parliamentary Committee on Mines and Energy and the Finance Committee to provide guidance on the complex situation at hand.

The GGSSA’s rejection of the Committee’s report highlights the ongoing concerns surrounding the GNPC/GEGL deal and the need for further scrutiny and expert input. The parliamentary probe into the matter will be crucial in ensuring transparency and accountability in the energy sector moving forward

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