ACEP raises alarm as Office of President gives Ghana Gas Company top appointment
- The African Center for Energy Policy (ACEP) has raised concerns about the appointment of the National Gas Company (GNGC) as the national gas aggregator
- ACEP argued that GNGC lacks the capacity to effectively play the role of an aggregator in the Ghanaian oil and gas sector
- It recommended that GNGC be placed under the Ghana National Petroleum Commission (GNPC) in that regard
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Information available to YEN.com.gh shows that the Office of the President has appointed the Ghana National Gas Company (GNGC) as the national gas aggregator.
The selection has caused a stir as the African Center for Energy Policy (ACEP) is not convinced GNGC can effectively play the role.
Reacting to the appointment, ACEP argued that GNGC lacks the capacity to assume the liabilities of the commitments that come with the role of an aggregator in the Ghanaian oil and gas sector.
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Per a report by citibusinessnews.com, it added that it would be better if GNGC is made a subsidiary of the Ghana National Petroleum Commission (GNPC).
This, ACEP explained, would help achieve optimal results for Ghana’s oil and gas sector using a top-down integration model with GNPC at the top as an anchor.
The think tank went on to say that the model would allow GNPC to support subsidiaries along the value chain with their balance sheet.
ACEP further indicated that the presidency approved the proposal based on a document submitted by GNGC which called for an adjustment of the institutional framework in the oil and gas sector.
Meanwhile, ACEP has raised concerns about the government’s decision to absorb 50% of the electricity bills of residential and commercial users for the next three months.
The Centre is convinced that the decision could be the final nail in the coffin of the debt-stricken sector which is already facing challenges.
ACEP revealed that the decision is likely to cost the government about GHC1 billion each month, bringing the total cost to approximately GHC3 billion.
READ ALSO: Latest report shows that Ghanaians pay more for locally produced gas
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Source: YEN.com.gh
