Business News of 2014-03-21

‘Blame MoFEP for Ghana Gas hitches’

Chief Executive Officer (CEO) of the Ghana National Gas Company (GNGC), Dr. Sipa-Yankey says his outfit cannot be blamed for failing to meet its schedule.

According to him, the Ministry of Finance failed to release funds on time for the project.

He said Ghana Gas has so far used two years and three months to execute the gas project.

The CEO, in the past, announced completion dates for the project but all have failed to materialize.

Dr Sipa-Yankey noted that the company would begin processing gas for commercial and domestic use by the end of June this year, adding that work on the Atuabo gas plant is more than 80 percent complete.

If the gas plant becomes operational, it would help reduce power outages currently being experienced in the country because the plant would draw gas from the Jubilee Oilfield to power the Aboadze thermal plant, he indicated.

The company lost a container with 34 fabricated plates, among others, meant for the construction of an LPG storage tank last year.

The consignment sank off the coast of South Africa as a result of bad weather, authorities at Ghana Gas explained.

In February, the Ghana National Gas Company (Ghana Gas) signed a construction, pre-commissioning and tie-in agreement (CTIA) with Tullow Ghana Limited (TGL) to allow TGL and Ghana Gas to construct, pre-commission and tie-in Floating Production Storage and Offloading (FPSO) vessel and the Ghana Gas Deep Water Pipeline.

Ghana Gas Company (GNGC) also contracted AECOM Technology Corporation (AECOM), a US-based provider of professional technical and management support services, to offer project management consulting services for the implementation of the Western Corridor Gas Infrastructure Development Project costing US$ 15.6 million.

Ghana Gas, established in July 2011 by the Government, is a 100 percent-owned commercial enterprise of it.

The first tranche of the capitalization of GH¢20 million was released by the Ministry of Finance on 25th October, 2011 to the company.

The capitalization was meant for topographical & geographical studies, compensation to project-affected persons on the Right of Way (ROW) and the Gas Processing Plant (GPP) site, onshore and offshore Environmental and Social Impact Assessments, land acquisition for the GPP site, ROW, as well as reinforcement of the Amanzure, Ankobra, Ebi Bridges.

Source: Daily Guide
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