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China-Africa Trade Information Service
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China-Africa Trade Information Service
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Ghana government has been urged to take a critical look at the gas production sector by reviewing the pricing system which has a lot to do with the high price of electricity power in the country.
Dr Acheampong, who doubles as a Senior Fellow with IMANI, made the call at a workshop on “Gas utilisation, gas pricing and inclusive development” on organised by IMANI Centre for Policy and Education and the Fondazione Eni Enrico Mattei (FEEM), a research institution, in Accra.
At the workshop, a research and analysis on the Gas Price Formation in the country was discussed and the need for the gas price systems to be reviewed was highlighted.
The gas sector has been said to offer Ghana significant cost saving security of supply and meeting environmental benchmark than other fuel choices.
It however, faced with structural non-payment issues, from the inability to recoup costs of gas supplied by exploration and production companies to the Ghana National Petroleum Company through the Ghana National Gas Company for use by the Volta River Authority and other Independent Power Producers in power generation, posing systemic risk.
Dr Acheampong said in Ghana, a lot of power generation, about 60 per cent come from thermal power which uses gas as the fixed stock for fuel and this is being generated at 13 to 14 cent per kilowatt per hour while that of neighbouring Cote d’Ivoire was generated at 10 cent power kilowatt per hour.
He suggested that the country should rather export almost all of its oil and use all of it gas that it produces.
