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Business News of Saturday, 14 May 2022

Source: www.ghanaweb.com

Free gas for electricity generation from Jubilee Fields to stop by end of year - GNPC

A power generation facility play videoA power generation facility

Free gas negotiated under Kufuor’s govt

Gas will be cheaper, but more expensive than now, GNPC

End of free gas won’t cause increment in electricity tariffs, Jantuah


The Ghana National Petroleum Commission has noted that the free gas arrangement from the Jubilee fields, negotiated by the erstwhile Kufuor government will come to an end soon.

A GNPC representative, during a presentation on the proposed tariffs, noted that the Ghana National Petroleum Corporation (GNPC) had considered this development in their calculation of gas prices.

“The Jubilee Foundation Volume, which we have enjoyed over the years as free gas, is coming to an end."

“The good news is that it will still be cheaper, but it won’t be the cheapest particularly; it will be more expensive than now.”

Speaking on JoyNews, Energy Expert, Kwame Jantuah, stated that the closure of the arrangement will not necessarily result in an increment in electricity tariffs in the country.

“They are negotiating a certain price. And from what I understand, it is a very low figure because PURC’s [Public Utilities Regulatory Commission] responsibility is to ensure that there is no unwarranted burden on the people.'

“So they have to really go through whatever proposal that has been brought with a fine-tooth comb and look at what kind of negotiation GNPC have had with the other IUCs to be able to satisfy themselves with the kind of tariffs that they are asking for," he noted.



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