The Parliamentary Select Committee on Mines and Energy says its investigation into the deal between the Ghana National Petroleum Corporation (GNPC) and Genser Energy Ghana Limited (GEGL) has revealed no irregularities.

This follows claims by Civil Society Groups, IMANI Africa and Africa Center for Energy Policy (ACEP), that Ghana buys gas for 95.8 million dollars and sells to Genser for 43.5 million dollars accounting for a $1.5 billion financial loss to the state.

But concluding its 11-month-long investigation, the Parliamentary Committee described the computation methods used by ACEP and IMANI as faulty.

Also read: Bright Simons: GNPC risks $1.5b financial loss to Ghana

In a statement signed by the Chairman of the Committee, Samuel Atta Akyea, the Committee rather alleged that more money will be saved by the country.

"Relating to the projected potential loss of US$ 1.5 billion by reason of the GNPC-Genser GSA, ACEP-IMANI hypothesis is defeated by reason of the following; the above computation confuses the penalties to GNPC for contract termination ("Liquidated Damages") under the GSA with the loss to GNPC for performing the contract ("GNPC Revenue Forgone").

"The US$ 1.5 billion was calculated using GEGL Pipeline Gas Discount Charge which is solely used for Shortfall Payments in the GNPC-GSA leading to this confusion.

"The reason is that, under current agreement, GNPC avoids payment of GTA Tariffs for 130 MMSCFD for 25 years ("GNPC Costs Avoided"). If Genser is moved to WAC0G Netback, GNPC will pay Genser a GTA Tariff equal to WAGP or PURC tariff," the report explained.

Again, the Committee stressed that the country stands to benefit from the deal in terms of job creation, and energy sector security.

The report added that the country will make "savings to the tune of US$ I .462 billion as GNPC will lose USS 1.462 billion if GEGL moved to WAC0G Net Back."

Also, there will be a reduction in transmission losses by US$480 million once the Ameri plant is relocated to Kumasi and made operational.

Read more: Claims GNPC is causing financial loss to the state in Genser deal misleading – Deputy Energy Minister

In conclusion, the Committee stressed that there is sufficient gas in the background, hence, Ghana Gas and Genser can operate and run convenient Gas Transmission Plants to power the economy.

"This does not call for a turf war and the agency heads should refer the controversial matters involved in this State institution and private sector partnership to the Minister for Energy, the referee, for resolution. Any petty rivalry in relation to the generation of power would be detriment of the nation," it added.

Meanwhile, the Ranking Member on Parliament’s Mines and Energy Committee, John Abdulai Jinapor, has disassociated himself from the contents of the Genser Energy and Ghana National Petroleum Corporation (GNPC) Sales Agreement Report.

He insists the report does not accurately reflect his views and that of the entire Minority in Parliament. 

In a statement issued on Thursday, August 17, he urged the public to disregard the report.

“For the avoidance of doubt, I wish to categorically disassociate myself from the content and intents of the said report as it does not accurately reflect my position and that of the Minority in its entirety.”

Firstly, it is true that I have consistently maintained that the GSA is not fairly priced and will result in significant losses to the state. It cannot therefore be the case that I disagreed with the position of ACEP/IMANI that the GSA in its current form will result in huge losses to the state.”

“More importantly, it is inaccurate to report that the entire membership of the committee disagreed with my position.”