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Home General News Featured

No gas exports to China: Govt

Attah Dabone by Attah Dabone
August 10, 2018
in Featured, Voice Business
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No gas exports to China: Govt
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Ghana’s Ministry of Petroleum has refuted allegations that the government plans to exchange gas for US$2billion from China.

The ministry said in a statement that: “There is no basis for the assertion that Ghana’s gas would be exported for $2 billion. All of Ghana’s gas are being used and would continue to be used in Ghana for power generation.”

The New Patriotic Party’s Policy Advisor, Boakye Agyarko, had alleged at a press conference on Wednesday, 26 October, at the party’s headquarters in Accra that President John Mahama is engaged in a deal that will essentially mortgage volumes of Ghana’s gas supply to China in return for a US$2billion loan.

According to him, “The NDC is busily entering into a deal with the Chinese that will mortgage all our gas supply away over the next 19 years.”

But government insists that the accusations are not factual.

Below is the full statement:

NPP ALLEGATION ABOUT GAS OFFER TO CHINA UNTRUE

The Ministry of Petroleum has observed with concern media reports on false allegations made by the New Patriotic Party (NPP) suggesting that:

In 2017 gas supply from the Jubilee Fields will stop as the FPSO is expected to shut down for a period of six months and, therefore, this will plunge the country into power supply challenges;

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Ghana plans to export all its gas to China in return for $2 billion.

The Ministry views these statements as reckless, untrue, and are calculated at best to create fear amongst Ghanaians. The Ministry, therefore, wishes to clarify these issues.

1. In 2017 gas supply from the Jubilee Fields will stop as the FPSO is expected to shut down for a period of six months and, therefore, this will plunge the country into power supply challenges.

This is not true. In Ghana, gas supply is routed to our power plants through the gas plant in Atuabo. Gas supply shutdowns are part of normal maintenance regimes on fields. Thanks to the hard work of the NDC government, under the able leadership of President John Mahama, gas supply in 2017 will no more be from one field but from both the Jubilee and the TEN Field. Therefore, any shutdowns on one field will be substituted by gas supply from the other field. Due to diligent planning, any shutdowns for maintenance on the Jubilee field would be more than compensated for by supply of gas from the TEN Field.

2. Ghana plans to export all its gas to China in return for $2 billion.

There is no basis for the assertion that Ghana’s gas would be exported for $2 billion. All of Ghana’s gas are being used and would continue to be used in Ghana for power generation. We should not confuse the use of proceeds or revenues from the sale of gas or its derivatives to support financing arrangements with the actual sale of lean natural gas and liquids. It is ridiculous to say that Ghana’s gas would be sold to China.

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The CDB facility simply anticipates the use of revenues from the sale in Ghana to power plants of lean natural gas to support financing. No natural gas will be sold to Chinese to facilitate the financing. Any excess lean gas which is not sold to power plants in Ghana will be dedicated to petrochemical industry development including fertiliser production to support agriculture in Ghana. Any excess LPG or other natural gas liquids not used in Ghana can also be exported either to our neighbours or to any potential buyer.

The Ministry, therefore, entreats Ghanaians to disregard these reports as they do not represent the facts.

We once again assure Ghanaians that our offices are opened to all persons who genuinely seek information on the happenings in the sector.

Source: Ghana/AccraFM.com

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