• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, July 9, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

GNPC’s role in acquiring gas for GNGC, financially unsustainable in the long term

September 6, 2021
Stephen M.Cby Stephen M.C
in Extractives/Energy, Sub Top Stories, Sub Top Stories2
0
political interference

Matthew Opoku Prempeh, Minister of Energy

The current role that sees the Ghana National Petroleum Corporation (GNPC) acquire gas for the Ghana National Gas Company (GNGC) has piled up debts for the National Oil Company (NOC), and this ongoing trend is only to continue unsustainably in the long-term.

The role of GNPC in connection with gas supply to GNGC involves collecting associated and non-associated gas from Ghana’s producing fields (negotiating the price of gas) and selling it to Ghana Gas.

Accordingly, GNPC has been paying the foreign oil operators for the gas, with the exception of associated gas uptake from the jubilee field but has not received any payment from Ghana Gas Company since September 2014.

RelatedPosts

Ghana Poised to Reap Big from Soaring Gold Prices

E&P Defends $100M Azumah Mine Acquisition, Rejects Allegations

Ghana’s IMF Programme Goes Off Track

However, the NOC has not been paid by Ghana Gas, and not financially compensated by government, which makes this role financially unsustainable in the long run and will eventually require government’s intervention.

That said, the cumulative indebtedness to the Ghana National Gas Company (GNGC) is almost a billion dollars according to the Public Interest and Accountability Committee’s (PIAC) half-year report for 2020.

While PIAC has warned that the debt which has amounted to US$942,260,510 has reached an unsustainable level, this amount is fully owed GNPC.

  • Gov’t interference to be the biggest hurdle for GNPC’s Operatorship
Challenges facing Ghana Gas

On the other hand, Ghana Gas Company’s mandate is to build, own and operate infrastructure required for the gathering, processing, transporting and marketing of natural gas resources in Ghana. Ghana Gas Company, in turn sells the gas to the Volta River Authority (VRA), which generates electricity.

However, this is also faced with the irregular or partial payments of gas deliveries to the Volta River Authority (VRA). Added to this is the fact that, GNGC for so many years has been faced with a plethora of setbacks chiefly among which are technical and operational challenges, the overlaps between its institutional mandates and those of GNPC.

For instance, despite the large amounts of gas supplied to the Ghana National Gas Company, the PIAC notes that there were no payments from GNPC into the Petroleum Holding Fund in respect of gas revenue during the first half of 2018.

During that period, as an example, GNGC received a total of 14,637.25 MMScf valued at approximately US$45 million. GNGC processed the raw gas and sold it with an invoice value of US$160 million, but only received US$46mn (29 percent).

  • Financial Shortfalls in Ghana’s Gas Sector are a growing challenge
Minister’s take on GNGC’s challenges

Besides, the Minister of Energy, Matthew Opoku Prempeh acknowledged this escalating debt during the swearing-in of the GNGC Board, commenting that:

“As sector Minister, one of my priorities is to rid the sector of avoidable debts especially, ones I call intra-energy sector debts. This will ensure liquidity of companies in the carrying out of their operations as well as other financial obligations.

“I am aware that in the past one of the major challenges Ghana Gas has faced is VRA’s indebtedness to it; payments for the gas supplied to them in their operations were quite irregular.”

Matthew Opoku Prempeh, Minister of Energy

This notwithstanding, the Gas Master Plan whose implementation was abandoned in 2016, just five months after becoming operational, would have made GNGC a fully owned subsidiary of GNPC.

Although this recommendation is supposed to encourage coordination between GNPC and GNGC, the Minister has hinted a revision of the Gas Master Plan. Albeit, some experts in the field have indicated that the role of the GNPC as a national gas aggregator should be maintained.

READ ALSO: World Beard Day: grooming tips for each face shape

Tags: gasGhana GasGNPCJubilee fieldTEN field
Please login to join discussion
Previous Post

Population growth contributing to increased crime rate- Dr. Akenteng

Next Post

D Black set to launch his radio station

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

July 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

July 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

July 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

July 9, 2025
GoldBod CEO Champions Value Addition in Mining
Extractives/Energy

Ghana Poised to Reap Big from Soaring Gold Prices

July 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

July 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

by Esther Korantemaa OffeiJuly 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

by Lawrence AnkutseJuly 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

by Silas Kafui AssemJuly 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

by Comfort AmpomaaJuly 9, 2025
GoldBod CEO Champions Value Addition in Mining
Extractives/Energy

Ghana Poised to Reap Big from Soaring Gold Prices

by Prince AgyapongJuly 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

by Evans Junior OwuJuly 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Mustapha Gbande, Party, President.
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
GoldBod CEO Champions Value Addition in Mining
Hon. Haruna Iddrisu, Ghana's Minister for Education
[/vc_row_inner]

Recent News

  • Debby Reveals Professionalism Fuels Female Musicians
  • Mass Jail Sentences Deepen Tunisia’s Political Crisis
  • Every NDC Member Is Better Off Today – Gbande
  • Mass Casualty Incidents Besmirch Gaza’s Aid Struggle
  • Ghana Poised to Reap Big from Soaring Gold Prices
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.