By Kofi Ahovi
The Ministry of Energy is expected to come up with a draft Gas Pricing Policy by the end of March this year, BusinessWeek has gathered.
It is expected that the Gas Pricing Policy will demand the sector to create a structured and transparent framework for gas pricing.
The draft policy will enable the government to adequately and efficiently price its gas thereby providing incentives for a more efficient gas industry. The draft policy will be presented to cabinet for scrutiny and eventually presented to parliament for approval
To this effect, the Ministry of Energy would be meeting with a consultant this week to draft the modalities. The World Bank is sponsoring the consultancy.
“The pricing policy does not fix gas prices but provides a framework for establishing minimum gas price that can be charged to any category of buyer,” the source told Business Week.
The government recently secured a US$3 billion Chinese loan facility of which US$150 million will finance an ICT-enhanced surveillance and monitoring facility for the oil and gas enclave project and US$850 million to finance the western corridor gas infrastructure development project.
The two-part financial facility which is expected before Parliament for consideration and approval is part of a master facility agreement between Ghana and China Development Bank Corporation.
In another development, the Ghana National Gas Company (GNGC) and Sinopec signed an agreement late last year for the completion of the first phase of a US$700 million gas project, which is expected to be completed in December 2012.
The first phase of the project will involve the construction of a gas processing plant, a 36-kilometer shallow-water offshore pipeline from the FPSO to the plant, a 120-kilometer onshore pipeline to a power plant in Aboadze and a 75-kilometer onshore pipeline to the town of Prestea.
During the first phase, the gas output will be supplied to power plants in the Western Region. The plant is expected to process 150 million cubic feet of gas daily, and this would increase as the project continued.
The Ministry of Energy is expected to come up with a draft Gas Pricing Policy by the end of March this year, BusinessWeek has gathered.
It is expected that the Gas Pricing Policy will demand the sector to create a structured and transparent framework for gas pricing.
The draft policy will enable the government to adequately and efficiently price its gas thereby providing incentives for a more efficient gas industry. The draft policy will be presented to cabinet for scrutiny and eventually presented to parliament for approval
To this effect, the Ministry of Energy would be meeting with a consultant this week to draft the modalities. The World Bank is sponsoring the consultancy.
“The pricing policy does not fix gas prices but provides a framework for establishing minimum gas price that can be charged to any category of buyer,” the source told Business Week.
The government recently secured a US$3 billion Chinese loan facility of which US$150 million will finance an ICT-enhanced surveillance and monitoring facility for the oil and gas enclave project and US$850 million to finance the western corridor gas infrastructure development project.
The two-part financial facility which is expected before Parliament for consideration and approval is part of a master facility agreement between Ghana and China Development Bank Corporation.
In another development, the Ghana National Gas Company (GNGC) and Sinopec signed an agreement late last year for the completion of the first phase of a US$700 million gas project, which is expected to be completed in December 2012.
The first phase of the project will involve the construction of a gas processing plant, a 36-kilometer shallow-water offshore pipeline from the FPSO to the plant, a 120-kilometer onshore pipeline to a power plant in Aboadze and a 75-kilometer onshore pipeline to the town of Prestea.
During the first phase, the gas output will be supplied to power plants in the Western Region. The plant is expected to process 150 million cubic feet of gas daily, and this would increase as the project continued.
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