The claim by the Director of Public Affairs at the Ghana National Gas Company (GNGC), Mr. Ernest Owusu Bempah Tuesday, November 1, 2022, that the Sankofa Gas is the most expensive gas in the whole world is completely false and baseless.
As can be seen from the attached document ( the Weighted Average Cost of Gas (WACOG)) by the PURC which accounts for the various Gas sources and their prices, the price per MMBTU for Sankofa is $6.1 whilst that of the Tema LNG which was signed under the Akufo-Addo Government is $8.32.
Clearly from this, the claim by Mr. Owusu Bempa that the Sankofa Gas (OCTP) price is the most expensive in the world is false and can only be a figment of his imagination.
In addition, the Sankofa field has been supplying about 210MMBTU per day which is more than the contractual volume of 170MMBT per day.
Therefore, it is warped logic for Mr. Bempa to make the wild claim that the Government has paid some phantom $3.6bn on a so-called take or pay charges about the Sankofa project.
For the record, The World Bank is supporting the Sankofa Gas Project with a $500 million payment guarantee for the payment obligation under the Gas Sales Agreement.
Also, the International Finance Corporation the World Bank Group’s private sector investment arm was one of the Lead Arrangers in a bank consortium that mobilized more than $1 billion, including $300 million from the IFC, while the Multilateral Investment Guarantee Agency provided a $217 million Political Risk Insurance for the successful implementation of the project.
It is therefore complete hogwash for the Director of communication to make the wild allegation that the IMF kicked against this noble project which has contributed significantly towards providing power at a cheaper price.
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