In the realm of Ghana’s energy landscape, the GNPC-Genser gas deal has emerged as a contentious topic, raising eyebrows and concerns over potential financial losses. The involvement of valuable natural gas owned by Ghana being sold at a questionable rate to Genser, a private company, triggered an investigation by two reputable think tanks – IMANI Ghana and ACEPA.
Their probing analysis, published in September and October 2022, shed light on a possible loss of $1.5 billion for the nation. However, Atta Akyea, an influential NPP MP and Chair of Parliament’s Mines and Energy Committee, entered the fray with his own report, aiming to counter these findings. Yet, a closer examination of his report reveals five key misconceptions.
Akyea’s first claim centers around the price at which GNPC purportedly sells gas to Genser – $6.08 per MMBtu, with a reimbursement of $3.29 due to “netbacking.” However, GNPC’s submitted calculations to PURC suggest that the gas’s cost surpasses $6.5, even before accounting for transportation.
Akyea’s narrative crumbles, as the evidence points toward the inadequacy of the reimbursement amount and the actual cost of gas. In June 2023, PURC adjusted raw gas prices to $6, rendering Akyea’s figures starkly off-balance.
Another discrepancy arises from Akyea’s assertion that Energy Minister NAPO was ignorant of the deal, while letters from March 2021 tell a different story. These letters unveil NAPO’s active role in instructing GNPC to collaborate with Genser and even granting preliminary approval. This contradiction underscores the complexity of Akyea’s claims and raises concerns about the accuracy of his report.
Akyea’s contention that the GNPC-Genser deal operates within a “deregulated market” falls short in light of Ghana’s overarching policies. The entire process revolves around nationalized natural gas distribution, with Ghana Gas, a state-owned entity, serving as the sole distributor. A March 2020 policy stipulates that gas prices in the “deregulated market” are overseen by the Ministry of Energy, highlighting Akyea’s misinterpretation of the scenario.
Furthermore, Akyea’s report purports consensus between him and John Jinapor on the cost of the Genser deal, an assertion that Jinapor vehemently denies. Jinapor’s public rejection of Akyea’s claim and his clear denunciation of widespread committee support for the report cast doubts on Akyea’s narrative.
Akyea’s final claim rests on Genser’s supposed authority to impose a $3.29 transmission tariff for transportation. However, the absence of a gas transmission license for Genser contradicts this assertion, effectively unraveling his claim.
The evidence that emerges from thorough sources, such as Bright Simons’ analysis (“Unpatriotic Parliamentary Report on GNPC-Genser Gas Deal Riles”) and ACEP’s comprehensive response to Akyea’s report, underscores the depth of these misrepresentations. Akyea’s credibility comes into question, particularly as a senior politician entrusted with uncovering the truth. As Ghanaians, it is crucial to demand accuracy, transparency, and impartiality in matters of national significance.
References:
- Bright Simons (August 17, 2023). “Unpatriotic Parliamentary Report on GNPC-Genser Gas Deal Riles.” Retrieved from: https://brightsimons.com/2023/08/17/unpatriotic-parliamentary-report-on-gnpc-genser-gas-deal-riles/
- ACEP (August 2023). “ACEP & IMANI Response to Genser-GNPC Gas Deal Committee Report.” Retrieved from: https://acep.africa/acep-imani-response-to-genser-gnpc-gas-deal-committee-report-august-2023/?amp=1
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