The Institute for Energy Security (IES) has kicked against the construction of the Liquefied Natural Gas terminal in Tema.
The IES said the country’s short-term and long-term priorities must be set right, so the country does not pay for what it does not need immediately.
Industry report shows that the raw gas exported to Ghana National Gas Company from the three producing fields represent less than 38 percent of produced gas compared to reinjected and flared gas which is in excess of 68,000 million standard cubic feet, constituting 59 per cent-plus of produced gas.
It is therefore clear that the country has failed to make optimal use of its natural gas resource while it struggles to off-take the gas, hence the decision to re-inject and flare.
IES believes with ample proof that there is sufficient supply from domestic sources to meet the country’s gas needs, the contracting of a regasification facility at this moment is a misplaced priority and wasteful.
It said it is wasteful in the sense that it is going to worsen the excess supply situation, resulting in more cost to the country, in the face of the take-or-pay clause embedded in the liquefied natural gas, LNG import contract.
The Institute noted that where there are clearly excesses in supply of the commodity, and the excesses are creating bottlenecks for production and cost to the off-taker, the excess gas production should rather provoke a search for new market.
The IES advised Government to stimulate demand by putting in place relevant gas infrastructure and regulatory policies to resolve the issue of unutilised gas, beyond the use of natural gas for power generation.