By Franklin Asare-Donkoh
Management of Ghana National Gas Limited has proposed a 91% increase in its tariff, from US$1.10 to US$2.10 per million metric British thermal units (MMBtu).
According to the gas processing company, the request before the Public Utilities Regulatory Commission (PURC) forms part of efforts to expand and sustain technical operations.
The company said the proposed increment is necessary to sustain operations, expand infrastructure and ensure the long-term reliability of the natural gas transmission system.
Speaking at a stakeholder forum on the tariff review, Manager of Commercial Operations at Ghana Gas, Sylvester Enumi Cudjoe, explained that the proposed cost-reflective tariff is aligned with PURC’s rate-setting guidelines and aims to recover prudent capital investments while ensuring operational efficiency.
“We have proposed to the PURC that our tariff should move from 1.10 as we have today to about 2.10. The basis is the things that I have already elucidated. One, if you want to be a prudent operator, you have to invest in certain key instrumentations,” he said.
According to the proposal, the adjustment covers capitalised expenses, approved short-term investments and revenues from natural gas liquids, which will offset processing costs.
Mr Cudjoe noted that since the last major review in 2022, the company has undertaken critical expansions in gathering and transmission infrastructure to meet rising demand and support industrial growth, much of which has not yet been fully accounted for in the regulated asset base.
Ghana Gas argues that the revised tariff strikes a balance between investor and public interest while positioning the company to play a central role in driving industrialisation, enhancing energy security and supporting the country’s transition to cleaner fuels.
The 91% tariff request follows similar proposals by six other state-owned utilities seeking increases between 59% and over 200%.
All seven tariff proposals remain subject to PURC approval after extensive stakeholder consultations.
