Business News of 2014-03-19

Ghana cannot solely rely on Nigeria for gas - Bawa

The Communications Consultant to the Energy Ministry, Edward Bawa, has said the country cannot solely rely on Nigeria for its gas supply.

According to him, Ghana needs about 400 million cubic feet of gas per day to run its power plants efficiently but that amount cannot be provided by Nigeria.

The West African giant is already breaching a contract for the supply of gas to Ghana and two other West African countries- Benin and Togo- under the West African Gas Pipeline project.

Per the contract, Ghana was to receive on daily basis, a minimum of 120m standard cubic feet of gas but Nigeria has reneged on its responsibility to provide the required quantity of gas.

Edward Bawa told Myjoyonline.com "they have not met the contractual volumes and Ghana has consistently drawn their attention to it."

He said Ghana has been forthright in demanding that Nigeria does not renege on its part of the contract and has not spared any opportunity to make that point clear to the Nigerians.

He cited an instance of the committee of Energy Ministers meeting last held in Benin in which Ghana's Energy Minister demanded answers for the delay in the completion of the West Africa Gas Pipeline project.

Bawa also hinted of plans by the West Africa Gas Pipeline Authority to take steps, including, legal remedies, against the suppliers of gas for reneging on the contract.

He was however, emphatic that Ghana needed to explore other opportunities for the provision of gas to facilitate its energy production.

Key among the opportunities is the Atuabo gas processing plant, which is currently being built in the Western Region, he noted.

Edward Bawa said the Atuabo project is expected to be completed by close of year 2014.

The Communication consultant also hinted of plans by government to collaborate with a Chinese company for the use of coal as an alternative resource in the power generation mix.

He was optimistic the power crisis will soon be a thing of the past if the current projects are religiously undertaken.