Ghana Gas denies $500 million pipeline story

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• Priscy baby 7 years ago

  Please we want to know the truth if that is not the truth I dnt know why some leaders in these country dnt say the truth to the people of the nation....

  Please we want to know the truth if that is not the truth I dnt know why some leaders in these country dnt say the truth to the people of the nation....

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• Senyo A. 7 years ago

  Looks like the numbers don't add up in the Stateman's story. As an engineer living in Texas, there is no way we build a mile of pipeline for $211,000. It costs us over $3M per mile and that is on the conservative side.

  Looks like the numbers don't add up in the Stateman's story. As an engineer living in Texas, there is no way we build a mile of pipeline for $211,000. It costs us over $3M per mile and that is on the conservative side.

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• Maxwell Akuffo 7 years ago

  Upon reading the article published in the statesman publication and hearing the various exchanges between the Ghana Gas communications rep and various radio personalities I felt morally obliged to shed some light on this outr ...
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  Upon reading the article published in the statesman publication and hearing the various exchanges between the Ghana Gas communications rep and various radio personalities I felt morally obliged to shed some light on this outrageous story.
  
  Before I start I think it is important to mention that I am a Ghanaian pipeline engineer with many years’ experience working in the USA for nearly a decade. Based on common sense and basic arithmetic which most people with a basic high school education should be able to grasp I will explain to Ghanaians the true facts involved in this story.
  
  As advertised in many news outlets Ghana Gas has actually entered in to a “BOT” BUILD,OPERATE,TRANSFER agreement with a Chinese company to construct the pipeline , by definition this means that Ghana has not taken a loan to build this infrastructure, neither will Ghana gas be responsible for footing the cost of the construction, the truth of the matter is that pipelines are charged based on a tolling fee just like roads, hence every cubic foot of GAS which flows through the pipeline is charged at certain tolling fee just like cars which travel on a toll road.
  
  Bearing in mind what I have said, the real question that Ghanaians should be asking is,” what is the tolling fee for the pipeline”? Not” what is the project cost of the pipeline”? From my understanding Ghana currently uses the West African Gas Pipeline (WAPCO) which charges around 4.5 USD per MMBtu of gas which flows through the pipeline.
  
  If the Ghana gas pipeline is cheaper than 4.5 USD then Ghana gas should be commended for performing a miracle since ownership of the pipeline will be transferred to Ghana after 15 years without Ghana spending a penny on the construction of the pipeline. (That is how BOT projects work my friends).
  
  Bearing in mind what I explained all the hula Ballou about a 500 Million USD pipeline is totally ridiculous based on the fact that the Chinese are bearing the full cost of the pipeline not Ghana or Ghana GAS.
  
  What shocked me more was the abhorrently embarrassing illiteracy and innumeracy displayed by the writers at the statesmen who in a frenzy of propaganda completely miscalculated the numbers which they themselves stipulated in their own article I will explain as follows, (however feel free to roll around your living room in fits of laughter when you release how pathetic this partisan publication has made themselves look).
  
  The article in the statesman talks about an American pipeline project which costs around 1.2 Billion USD for 570 miles of comparable pipeline it quotes this pipeline cost as approximately 211,000 USD per mile, however the simple use of a calculator would tell these people that 211,000 USD multiplied by 570 miles does not equal the 1.2 Billion which they quote for the so called “American project” it actually equals 121 Million hence the cost per mile for this project is actually 2.11 Million USD per mile not the 211,000 USD which the statesman uses to compare to the Ghana Gas pipeline.
  
  Hence Claiming that the Ghana project is ten times more expensive when it is actually nowhere near that figure, by way of a primary school error of basic calculation the statesman has quoted the US project at one tenth of its actual cost per mile, that my friends is either journalistic malpractice or sycophantic propaganda I will not speculate which one.
  
  Moving on to the details of the two projects, when making comparisons it is important to consider that the “American project “ which the statesman refers to is a 16-inch gas pipeline constructed by Oneok partners company in the US to transport gas from the US midcontinent to the Texas gulf coast, simply using a search engine such as google would have told the Statesman reporters that the American pipeline is 16-inches diameter as compared to the Ghana Gas pipeline which is a 24-inch pipeline project.
  
  Bearing this in mind the industry standard calculation unit used to cost the pipeline is a cost per inch mile not a cost per mile, making that comparison is like comparing the cost of a 10 meter wide road to that of a 15 meter wide road, then subsequently concluding that the 15 meter wide road is overpriced because its cost per mile is more than that of a road which is 5 meters narrower. This again my friends is either journalistic malpractice or sycophantic propaganda again I will let you speculate which one.
  
  In Summary of the above you can simply calculate that the American project cost is 132,000 USD per inch-mile based on the 1.2 Billion cost and the 16-inch diameter of the pipeline, compared to the Ghana project which is around 115,000 USD per inch mile based on the 500 Million USD cost and the 24-inch diameter. This makes the Ghana gas project around 15% cheaper than the so called “American project “referred to in the statesman article.
  
  Bearing in mind that the above is the only way in which the petroleum industry measures the cost of pipelines I would strongly encourage the partisan hacks at the statesman to seek some technical advice or learn how to use google before quoting these types of projects in the future.
  
  In summary if the 500M figure of the Ghana gas project is to be believed, the executives at Ghana Gas must have performed an absolute miracle to be able to construct such a pipeline at a unit cost which is 15% lower than a comparable project in the USA.
  
  Bearing in mind that such projects are typically way more expensive to execute in Africa due to the fact that the pipeline components are not manufactured in Africa and must always be imported and transported at exorbitant cost from developed countries.
  
  If one is to believe these numbers the contractors involved must be building the pipeline at loss in order to come in at a price which is so much lower than that of an American project. In short the writers at the statesman are an absolute disgrace to the profession of journalism and should be made to print a full retraction on the front page of their publication for all 15 of their patrons to read.

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• Nyatefetor 7 years ago

  We are often bombarded by tabloid articles which are consumed by the masses without thinking.
  
  Lots of intellectual deceptions by so called journalist with absolutely no area of specialization other than lies and fabricati ...
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  We are often bombarded by tabloid articles which are consumed by the masses without thinking.
  
  Lots of intellectual deceptions by so called journalist with absolutely no area of specialization other than lies and fabrications.

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• Yaw Mensah 7 years ago

  So, Mr. Ogbamey, how much is it going to cost? If the New Statesman's $500 figure is wrong, then please educate us. What is the correct amount?

  So, Mr. Ogbamey, how much is it going to cost? If the New Statesman's $500 figure is wrong, then please educate us. What is the correct amount?

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• Ebola Ford Mahama 7 years ago

  So what implementation Agreement that did not include COST DID YOU SIGN?. These are people leading Ghana.

  So what implementation Agreement that did not include COST DID YOU SIGN?. These are people leading Ghana.

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• not a begger 7 years ago

  Why do officials have to do things in secret. Ghanaians deserve to know what is being done for them by their leaders. If the people of Ghana were informed as you have explained there would not be any speculations.

  Why do officials have to do things in secret. Ghanaians deserve to know what is being done for them by their leaders. If the people of Ghana were informed as you have explained there would not be any speculations.

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• Boni 7 years ago

  I like the comment from the engineer in the USA. Clearly the statesman writer made himself look like a fool by publishing figures without doing even basic math.
  
  Its one thing to mscalculate other peoples figures but its a ...
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  I like the comment from the engineer in the USA. Clearly the statesman writer made himself look like a fool by publishing figures without doing even basic math.
  
  Its one thing to mscalculate other peoples figures but its another thing to miscalculate the numbers in your own article. (now that's pathetic journalism)
  
  By the way does anybody knows who is behind the statesman or if they are a political newspaper?

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• Mr Bond 7 years ago

  Folks the thieves has been exposed of loot Ghana money and now they are finding ways and holes to run into it.Folks am not surprise at all.Have you folks remember Ridge Hospitals cost us $306 million and when Nana Ado talk ab ...
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  Folks the thieves has been exposed of loot Ghana money and now they are finding ways and holes to run into it.Folks am not surprise at all.Have you folks remember Ridge Hospitals cost us $306 million and when Nana Ado talk about it they said they lie about the fingers and up till now they have not tell us the true cost of Ridge hospital.We are watching.Criminals and thieves.

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• Mac D 7 years ago

  The story from the statesman piblucation is clearly false.And lacks even basic integrity.Yes we want change but fabrication and propoganda s not the kind of change we are looking. The statesman should be more diligent and re ...
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  The story from the statesman piblucation is clearly false.And lacks even basic integrity.Yes we want change but fabrication and propoganda s not the kind of change we are looking. The statesman should be more diligent and responsible with articles in the future.

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• FORSEN 7 years ago

  I agree with you my brother as much as i hate the corruption which is bankrupting our nation I also hate partisan propaganda where semi literate journalists seek to progress there political agenda with lies and exagreation.Th ...
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  I agree with you my brother as much as i hate the corruption which is bankrupting our nation I also hate partisan propaganda where semi literate journalists seek to progress there political agenda with lies and exagreation.The statesman article was a pure fabrication with some very embarrasing Math.

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• Gifty 7 years ago

  Ladies and gentlemen.
  
  Why cant we just think in the interest of Ghana instead of being obsessed with tribe and party. Any fool can see that the statesman article was completely inaccurate with some amazing miscalculations ...
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  Ladies and gentlemen.
  
  Why cant we just think in the interest of Ghana instead of being obsessed with tribe and party. Any fool can see that the statesman article was completely inaccurate with some amazing miscalculations in the article, clearly if the statesman does not apologize for the article, nobody will take there publication seriously ever again. I am not NDC but even I can see that the article was absolute nonsense. Let us fight battles we can win instead of supporting irresponsible stupidity in the media.

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• Charles 7 years ago

  I agree with many of the comments on this article .The statesman article was really over the top and showed a lack of journalistic integrity. How on earth can somebody quote figures in a publication without even adding up his ...
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  I agree with many of the comments on this article .The statesman article was really over the top and showed a lack of journalistic integrity. How on earth can somebody quote figures in a publication without even adding up his own figures. It is rather a shame that some journalists can use a newspaper to perform sabotage and propaganda the good news is that they were caught red handed this time. (How pathetic)

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• Nathaniel 7 years ago

  The Statesman used to be a credible publication many years ago and was once even owned by the current NPP flag bearer Nana Addo. This article with falsified numbers and made up facts was truly beyond the pale and is not worth ...
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  The Statesman used to be a credible publication many years ago and was once even owned by the current NPP flag bearer Nana Addo. This article with falsified numbers and made up facts was truly beyond the pale and is not worthy of the founders of the publication. I suggest a swift retraction to save face.

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• Nsiah 7 years ago

  I remember some weeks back on tv3 I saw sipa yankey signing this contract with 500million mentioned . ogbamey so how much is it? Nanab3ba exconvict Sipa will go back to jail

  I remember some weeks back on tv3 I saw sipa yankey signing this contract with 500million mentioned . ogbamey so how much is it? Nanab3ba exconvict Sipa will go back to jail

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• Mapo 7 years ago

  Nana beba you are a very foolish and ignorant person Delete repeated word Sipa Yankee has worked hard for Ghana as a trusted public servant. He single handedly spearheaded the Gas infrastructure project for Ghana, which has e ...
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  Nana beba you are a very foolish and ignorant person Delete repeated word Sipa Yankee has worked hard for Ghana as a trusted public servant. He single handedly spearheaded the Gas infrastructure project for Ghana, which has ended dumsor you ungrateful ignoramus.
  
  I belive that Ghana gas has done a good deed for the country by getting the Chinese to build the pipeline without any loan or any financial contribution from Ghana. The man deserves to be commended not insulted by partisan buffoons like you. Please show me the Gas infrastructure built by Kuffor and Nana Addo during NPP times.

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• Nsiah 7 years ago

  See you , singlehandedly indeed dont make me laugh so the directors engineers didn't do a thing. He was jailed once and will be jailed again he is the worst kind of politician the one who will still in private and be an angel ...
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  See you , singlehandedly indeed dont make me laugh so the directors engineers didn't do a thing. He was jailed once and will be jailed again he is the worst kind of politician the one who will still in private and be an angel in public. BTW the Chinese don't give free lunch ask ghana gas how much of the 1billion dollar loan they've paid so far? Nanab3ba , kabo euro hahhaha

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• Bernice 7 years ago

  Look this issue is very simple.The statesman article claims that a 24inch gas pipeline can be consyructed in America for 200k per mile.Why dont we go online and research if even a mile of tarred road or concrete U drain can ...
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  Look this issue is very simple.The statesman article claims that a 24inch gas pipeline can be consyructed in America for 200k per mile.Why dont we go online and research if even a mile of tarred road or concrete U drain can be constructed for 200k per mile.
  
  Now even illiterates have become journalists at the statesman.

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• Deny Manu 7 years ago

  Come on statesman are you trying to convince Ghanians that 200k times 570 is equal to 1.2 Billion.
  
  Please stop with the Tomfoolery

  Come on statesman are you trying to convince Ghanians that 200k times 570 is equal to 1.2 Billion.
  
  Please stop with the Tomfoolery

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• Nsiah 7 years ago

  The statesman might have given some figure which is wrong but the fact is he signed the contract i saw it on tv3 news and the sum was 500million dollars. Is it value for more or convict sipas 10% is part?

  The statesman might have given some figure which is wrong but the fact is he signed the contract i saw it on tv3 news and the sum was 500million dollars. Is it value for more or convict sipas 10% is part?

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