The tariff paid on gas supply for both domestic and industrial use may be going up from March this year 2019.
This is due to the decision by the government to restrict gas supply from the Jubilee field as a result of the coming on stream of gas from the ENI field.
The restriction follows the government’s agreement with the ENI to consume the gas to be produced from the Sankofa field.
The Sankofa Gas produced by ENI is expected to come on stream from March 2019 to produce associated gas to the Ghana Gas Company to power the Karpowership plant.
The higher price in the commodity is as a result of the processes associated with the processing which is part of an agreement signed between Eni and the government of Ghana.
Speaking at a workshop on gas price formation by the Imani Africa, Commercial Director at Ghana Gas, George Adjei indicated that the price of $7.5 per standard cubic feet of gas transported will make the gas higher than the price Ghana is currently getting from the Jubilee field.
“Transportation of gas from jubilee is restricted and will be taking effect from March this year. We have been asked to make use of the Eni gas from the Sankofa field this year, however, the pricing level for ENI gas is different from that of Jubilee. It means higher gas tariff in 2019 to be paid by consumers” he said.
Energy Economist and senior fellow at IMANI, Dr Theo Acheampong believes even though the agreement is already signed, the government can intervene to get the price down.
“Though I don’t think government can do much, the little taxes and rent charges can be reduced to make the price less for consumers. The charge when transferred onto power tariffs will actually be very significant” he noted.
Most participants at the workshop raised concern about the number of regulators in Ghana’s gas market.
The event was also used to launch a report on gas pricing in Ghana.
More Business Headlines
- No 100% assurance to depositors with axed Savings and Loans companies
- Nigerian gov't ordered to pay $9bn to private gas firm
- Full List of licensed Savings and Loans companies as at August 16
- Detailed reasons behind BoG closure of Ideal, Women's Bank, Midland, and 18 others
- Book to compliment Africa's efforts to meet economic, cultural needs to be launched
- GN Savings is not only solvent but would be highly liquid if... - Nduom reacts
- Eric Nipah appointed Receiver for insolvent Savings and Loans companies
- Why GN Savings and Loans Company Ltd was closed down
- StanChart cleans up, donates to Accra Rehabilitation Center
- Luv FM's maiden Corporate Groove Flavour hits Kumasi
- South Africa debt 'becoming uncomfortable', but no bailout requested – IMF
- GN Savings and Loans, 22 others closed down
- AWA, ASKY, Ethiopian Airlines partner to bring seamless travel to Ghanaians
- Vodacom to invest more than $589m on South Africa network this year
- South African retailer TFG to review Kenya, Ghana stores