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‘Natural gas is key to addressing Ghana’s energy needs’

By Iddi Yire, GNA

Accra, Aug 7, GNA – The Ghana
National Petroleum Corporation (GNPC) has urged the Government to use natural
gas in addressing the mounting energy needs of the country.

Dr Kofi Koduah Sarpong, the Chief
Executive Officer (CEO) of the GNPC, said natural gas for power production was
the right decision that government could take to ensure cheap supply of
electricity for the nation.

He said the Corporation would
continue to explore the natural gas resources of the country to ensure
sustainable energy supply.

Dr Sarpong made the appeal on Monday
during a panel discussion at the 2017 Ghana Economic Forum (GEF) in Accra,
organised by the Business and Financial Times with Barclays Bank as the lead
sponsor.

The two-day Forum, on the theme:
“Building a Ghanaian Owned Economy, 60 Years after Independence,” brought
together over 500 local and international business leaders to dialogue and
chart a clear path for Ghanaian businesses to own the Ghanaian economy. 

Strategic issues discussed at the GEF
include macroeconomic trends affecting the global economy; the attributes that
have allowed emerging market companies to play an increasing role on the international
stage; the rise of the Ghanaian urban consumer; and the interrelated social and
demographic changes creating new domestic engines of growth.

Dr Sarpong said: “The cost of
production of power is the key issue. Presently we say the cost of production
is very high. But then government has signed so many power purchasing
agreements to the extent that the totality of capacity is far in excess of
demand. But because the price is high, for you to do so, nobody will buy it.”

“For that reason we cannot even look
at the export market; because in the sub-region we are looking at an average of
11 cents per kilowatt hour but we do have, may be the composite average in
Ghana being more than 15 cents, because some agreements have got tariff rates
of up to about 18 cents.

“If that is the case, then you can
have an installed capacity, but it won’t make economic sense to produce. And
for industry, you notice that if you are producing at that high tariff rates
they cannot purchase it.

“So to me you can even have an
installed capacity but you won’t have available power because there is no
available market for it or those who buy eventually you kill their businesses.”

He said the high cost of electricity
arose from the kind of fuel used in power generation, and that the alternative
was to use natural gas.

He Ghana did not have too many
opportunities for hydro energy production and, therefore, had to depend on
thermal energy.

Speaking on the topic: “Making the
most productive use of energy resources in Ghana’s developmental agenda,” Dr
Sarpong said the high debts of the energy institutions, such as the Volta River
Authority, GRIDCO and Electricity Company of Ghana, were major constraints.

He said high overhead debts, high
interest rates and high cost of production would all go a long way to affect
tariff cost in the country.

He therefore, advocated for the use
of natural gas to address the nation’s electricity generation needs.

Dr Ben K. B. Asante, Chief Executive
Officer (CEO) of Ghana National Gas, said fuel really was the first gate for
the thermal generation value chain and gas was the fuel of choice.

Dr Alfred Kwabena Ofosu-Ahenkorah,
the Executive Secretary of the Ghana Energy Commission, said for development to
take place in the country energy must be available, reliable, affordable and
sustainable.

Mr Ishmael Edjekumhene, the Executive
Director, Kumasi Institute of Technology and Environment, called for the
implementation of the Renewable Energy Act and the establishment of a Renewable
Energy Fund.

Ms Harriet Ammisah Arthur, partner,
Arthur Energy Advisors, urged government to put in place a strategy to address
the debts of the energy sector.

Madam Eunice Biritwum, the CEO of
Cent Energy Limited, said Ghana needed adequate power supply to develop as a
lower middle income country; adding that the right environment was needed to
facilitate the growth of the energy sector.

GNA

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