By Mabel Adorkor Annang
Fair gas pricing for electricity producers to attract investment is a major challenge in the power sector.
Stakeholders in the Oil and Gas Industry say the gas pricing depends on the rate of returns and the gas production field.
During a panel discussion at the 2nd Ghana Upstream Chamber Oil and Gas Conference in Accra, industry players said fair gas pricing depends on effective negotiations between government and investors.
Head of Ghana Business Unit at KOSMOS Energy, Joe Mensah explains how fair gas pricing is necessary.
“Because of the 1.3 billion dollars we want to invest in TEN to get more gas, we were asking for 360 and we’ve been going back and forth for the longest. Hopefully we can close that within the next few weeks, because there is an urgency for us to have an agreement, which is very important.”
The Director of Local Content at Petroleum Commission Kwaku Boateng said the Gas Pricing Policy clearly outlines the principles for pricing gas in the country.
He added that “there are two key components in the gas pricing policy. Investors are given adequate rates of return to invest in gas resources and at the same time the pricing is such that the investors should be able to recover their investment and the price must be fair to the consumer.
At this year’s Oil and Gas Conference, the Ghana Upstream Petroleum Chamber launched the 2023 industry report on the Upstream Sector.
The Report touched on harnessing Natural Gas for Ghana to become Energy self-sufficient.
The Chamber recommended to Government to optimize domestic gas production and utilization with clear pricing policies to incentivize investors.
The recommendations are aimed at fostering sustainability, creating an environment conducive to attract investment, promoting growth and ensuring long term prosperity.
Chief Executive of the Upstream Energy Chamber, David Ampofo said the 2023 Ghana Upstream Petroleum Industry Report is to encourage Government to come up with a good gas pricing regime to attract investors into the sector.
He emphasized that “we might get the gas but now the price. The companies might produce gas but it has to be bought and there are always challenges around that part of our aim is to push that subject a little, see how we can find a price that’s good for country, consumer and also for the investor”
The Upstream Petroleum Chamber wants Government to resolve legal disputes expeditiously and protect the sanctity of oil and Gas contracts and ensure fair and timely resolutions of disagreements.