The Africa Centre for Energy Policy (ACEP) says government’s deal with the Chinese government to export gas to China is not feasible.
Finance Minister, Seth Terkper has confirmed the New Patriotic Party’s claims that government intends to offer gas from one of the country’s gas fields to China for a loan from China Development Bank for a period of 19 years.
The deal which starts in 2018 will have gas drawn from the Atuabo plant only under the Ghana National Petroleum Corporation.
Seth Terkper says the agreement is in line with government’s self-financing loan strategy.
But head of policy unit at ACEP, Dr. Ishmael Ackah says the deal is not feasible.
“The various means through which gas can be transported, including using a pipeline in not feasible between Ghana and china,” he emphasized.
According to Dr Ackah, the move also contradicts provisions in the petroleum revenue management law.
“So when you look at the PRML, it preaches against going for a loan and using any of the oil reserves, of which the natural gas forms part as collateral”, he stated.
The gas supply is to re-activate the remaining $2 billion of the $3 billion loan which the Chinese discontinued after disbursing $1 billion to Ghana. But government, according to the Finance Minister, does not intend to go for all the remaining $2billion.
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