The Ghana National Gas Company Limited has firmly denied allegations reported by various media outlets suggesting that the CEO is under pressure to sign a dubious $812 million contract for the second phase of the Ghana Gas project.

In a strongly worded statement released by Ghana Gas, the company categorically denied any wrongdoing and condemned the misleading publications. The statement emphasized that the contract was awarded following a rigorous and transparent tender process, adhering to the Public Procurement Act, 2003 (Act 663), as amended.

“As a Company that owns and operates infrastructure required for the gathering, processing, transporting, and marketing of natural gas resources in Ghana and internationally, Ghana Gas embarked on this infrastructure expansion project. [This is] to process incremental gas flows from the Upstream Partners to meet the rising demand for gas for power generation and industrial use.”
Ernest Kofi Owusu-Bempah Bonsu, Head of Corporate Communications, Ghana National Gas Company Limited

According to Ghana Gas, the process began in 2021 when the Board of Directors approved the commencement of the GPP2 project. The company then sought and received approval from the Public Procurement Authority (PPA) to use the Restricted Tender procurement method under Section 38(a) of Act 663.

This method involved inviting bids from four firms, with their technical and financial submissions evaluated by the Entity Tender Committee. The Central Tender Review Committee (CTRC) of the Ministry of Finance also reviewed and approved the selected tenderer.

Following the selection process, Ghana Gas signed a Project Implementation Agreement with the chosen contractor, who has since established a Special Purpose Vehicle (SPV) to manage the project. The company is currently negotiating the relevant agreements with the SPV to facilitate the project’s implementation.

The company refuted claims of external pressure on the CEO to sign the agreements, describing the allegations as baseless and harmful. Ernest Kofi Owusu-Bempah Bonsu, the Head of Corporate Communications at Ghana Gas, urged the public to disregard the reports and called on the media to ensure accurate and responsible reporting.

Ghana Gas reiterated its commitment to maintaining high ethical standards in its operations and underscored the importance of responsible journalism in safeguarding the reputations of individuals and organizations. The company called for media houses to verify their facts before publication to avoid spreading misinformation.

Recent reports alleging undue pressure on the CEO of the Ghana National Gas Company Limited (Ghana Gas) to sign a controversial $812 million contract for the second phase of the Gas Processing Plant (GPP2) have sparked concerns among stakeholders and the public.

Media Allegations

These allegations, published in the Daily Post newspaper and on Ghanaweb, along with other media outlets, have prompted Ghana Gas to issue a strong rebuttal, emphasizing the transparency and legality of the procurement process.

The reports, first published in the Daily Post on May 6, 2024, and subsequently on Ghanaweb on May 7, 2024, alleged corruption and opacity in the contract awarding process for the Engineering, Procurement, Construction, Commissioning (EPCC), and financing of the Gas Processing Plant Train 2 (GPP2) project.

The company’s statement concluded with a caution to media outlets to be circumspect in their reportage, urging them to cross-check facts to prevent damaging the reputations of innocent parties.

This response by Ghana Gas aims to clarify the situation and assure stakeholders of the integrity of their processes and the transparency with which they operate. The company continues to focus on its mission to expand infrastructure for the gathering, processing, transporting, and marketing of natural gas resources both locally and internationally.