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Business News of Thursday, 26 November 2020


PIAC report shows indebtedness to Ghana Gas Company hit almost US$1 billion

Ghana National Gas Company Limited Ghana National Gas Company Limited

The cumulative indebtedness to the Ghana National Gas Company Limited (GNGC) has continued to rise to US$942,260,510.63, the Public Interest and Accountability Committee (PIAC) has revealed.

According to the Committee’s 2020 semi-annual report, the indebtedness falls on the part of GNGC’s shareholders refusing to honor their commitments.

“Cumulative raw gas production increased significantly by 65 percent; the highest recorded half-year volume of gas produced since 2010. Total petroleum receipts in the Petroleum Holding Fund (PHF) for the period stood at US$322,571,265.64, indicating a decline of 11.32 percent,” portions of the report said.

“The Ghana National Gas Company (GNGC) received US$1.78 million under the Cash Waterfall Mechanism in order to address their indebtedness to the Ghana National Petroleum Corporation (GNPC) for gas supplied, However, there was no payment to GNPC. Consistently, the non-payment of gas revenue denies the PHF of its due entitlement,” the report added.

PIAC also revealed the GNPC spent only 9 percent of its total receipts on Jubilee Fields equity financing.

This is attributed to the re-phasing of work programmes and disagreements surrounding the Cash Calls submitted by the Operator.

PAIC is the entity established by the Petroleum Revenue Management Act (PRMA) 2011, (ACT 815) to have oversight responsibility over the management and utilization of Ghana’s petroleum revenues.

Read PIAC’s 2020 semi-annual report below: