Vice President Dr Mahamudu Bawumia says the delicate nature of the gas industry in the country makes it one that must be highly regulated.
He said government will soon complete work on the transformation of the existing gas master plan into a gas law which will be used to regulate the Industry.
The new law is expected to provide the enabling environment for investors as well as help government to implement new technologies for the gas sector.
The Vice President was speaking at the ongoing Ghana International Petroleum Conference in Accra.
“Government recognizes that there are some regulatory challenges that must be addressed to provide regulatory certainty and predictability in the downstream natural gas market,” he said.
He added, “The proposed Gas Act will provide an enabling environment and appropriate incentives for investors that are willing to invest in Ghana.”
Dr Bawumia said through the Ministry of Energy there is an ongoing process of ensuring institutional and regulatory re-alignment of the midstream gas subsector to bring clarity and a degree of certainty to players within that subsector.
“The Minister for Energy would soon conclude the process of realignment and commence the process of legislative consolidation of the Gas Master Plan into a Gas Act,” he said.
He assured the petroleum downstream industry that government will create an enabling environment for downstream business to thrive competitively, efficiently and with the highest of safety standards.
The vice president said the Gas Act and others are some initiatives in the sector to invigorate.
The Vice President believes such initiatives are an important requirement for the development of Ghana into a petrochemical hub in the sub-region.
“Government recognizes that there are some regulatory challenges that must be addressed to provide regulatory certainty and predictability in the downstream natural gas market.
“The proposed Gas Act will provide an enabling environment and appropriate incentives for investors that are willing to invest in Ghana.
Dr Bawumia also assured investors that security of natural gas supply as feedstock for petrochemical plants is a priority for government.
Procurement of natural gas from domestic sources has already been secured under regulations governing the Domestic Supply Obligations of Upstream gas producers, he reiterated.