Ghana Gas Archives - Citi 97.3 FM - Relevant Radio. Always https://citifmonline.com/tag/ghana-gas/ Ghana News | Ghana Politics | Ghana Soccer | Ghana Showbiz Thu, 18 Jan 2018 14:13:42 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.8 https://citifmonline.com/wp-content/uploads/2019/05/cropped-CITI-973-FM-32x32.jpg Ghana Gas Archives - Citi 97.3 FM - Relevant Radio. Always https://citifmonline.com/tag/ghana-gas/ 32 32 Gov’t signs agreement with ExxonMobil https://citifmonline.com/2018/01/govt-signs-agreement-exxonmobil/ https://citifmonline.com/2018/01/govt-signs-agreement-exxonmobil/#comments Thu, 18 Jan 2018 14:13:42 +0000 http://citifmonline.com/?p=392769 Government is anticipating increased activities in Ghana’s oil exploration activities with the coming on board of ExxonMobil. The Minister of Energy, BoakyeAgyarko tells Citi Business News the move will also increase government’s revenue from the sector to propel economic growth and transformation. ExxonMobil’s investment in the oil sector becomes the first major one in Ghana following the […]

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Government is anticipating increased activities in Ghana’s oil exploration activities with the coming on board of ExxonMobil.

The Minister of Energy, BoakyeAgyarko tells Citi Business News the move will also increase government’s revenue from the sector to propel economic growth and transformation.

ExxonMobil’s investment in the oil sector becomes the first major one in Ghana following the landmark ruling by ITLOS in the maritime border dispute between Ghana and Ivory Coast, in September last year.

The apparent victory by Ghana gives the country an appreciable reputation among the global oil giants.

The Energy Minister, BoakyeAgyarko explains to Citi Business News the move is set to trigger further investments in the short to medium term.

“Exxon Mobil is coming in with the highest standard of safety, financial accounting and all that we need to get done as a country…we have received a lot of expression of interests from other major players; the BP, Shell, Chevron, among others. All of them are now coming to operate in Ghana,” he stated.

On his part, the CEO of the Ghana National Petroleum Corporation (GNPC), Dr. K.K. Sarpong, stressed the enforcement of local content policies.

In his view, the plan will give Ghanaians access to opportunities in Exxon Mobil’s operations where necessary.

“In terms of local content policies, the laws have been strengthened the Petroleum Commission is at the forefront of enforcing the laws and we at GNPC have the sustainability and localization department which tries to make sure that we bring our partner’s attention to the mode of operation so that we take advantage to get benefits from our local people both corporate and individuals.”

ExxonMobil joins other operators in Ghana’s petroleum upstream sector including, Tullow, Kosmos, ENI, among others.

Exxon 4

Earlier, some industry analysts raised concern over the Energy Minister’s failure to subject the contract to competitive bidding as spelt out in the Petroleum Exploration and Production law.

Reacting to this however, the Energy Minister maintained that the negotiations started before the passage of the law, it couldn’t have taken retrospective effect.

“There were four issues which put the negotiations into abeyance; they bordered on the treatment of foreign exchange, tax issues, among others. When we came in in 2017, the company approached us again and expressed their interest to revive the negotiations with the country but outlined the need to work around the issues so it could pave the way for their operations,” he stated.

“ExxonMobil started its program of operating in Ghana before the passage of the E&P law was passed in 2016 as such the law could not take a retrospective effect,” Mr. Agyarko added.

The company is expected to start its exploration activities fully after Parliament ratifies the deal.

Ghanaian ownership is estimated at thirty percent.

This comprises 10 percent royalty to the government of Ghana while the GNPC owns 15 percent stake as Carried and Participation Interest.

Also, the local partner for ExxonMobil is entitled to five percent of the company’s stake.

By: Pius AmihereEduku/citibusinessnews.com/Ghana

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Industry divided over reduced cost of gas https://citifmonline.com/2018/01/industry-divided-reduced-cost-gas/ Wed, 17 Jan 2018 06:06:27 +0000 http://citifmonline.com/?p=392305 There have been mixed reactions to government’s announcement of a 26% reduction in the cost of gas to businesses that rely heavily on the product. While industry has wholly welcomed the move, some industry analysts have cautioned against the outstanding debts facing institutions involved in the supply of gas. Citi Business News spoke to a couple […]

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There have been mixed reactions to government’s announcement of a 26% reduction in the cost of gas to businesses that rely heavily on the product.

While industry has wholly welcomed the move, some industry analysts have cautioned against the outstanding debts facing institutions involved in the supply of gas.

Citi Business News spoke to a couple of players involved in the sector and their perspectives have been backed with strong arguments which suggest possible ways that the government could use to ensure maximum benefit of its intended program.

President Akufo Addo first mentioned the reduction at the Commissioning of the Twyford ceramics factory at Shama over the weekend.

Per the reduction, businesses would buy a million British Thermal Units of gas at 6 dollars 50 cents, down from the 8 dollars 84 cents.

This also translates into some 26 percent reduction.

For industry, this is pleasant news as it will ultimately reduce the cost of power hence their operational costs.

The CEO of the Association of Ghana Industries (AGI), Seth Twum Akwaboah said,

“The reduction is good for businesses and it has positive impact on the cost of electricity and therefore reducing the cost of production and we consider that to be important for businesses and I also like the President’s emphasis on industrial consumers.”

But the Executive Director of KITE, Ishmael Egyekumhene and the Vice Chairman of the Public Interest and Accountability Committee (PIAC), Kwame Jantuah share divergent views on the immediate benefits of the move.

Mr. Egyekumhene explained possible reasons for the reduction as, “There is a foundation volume of gas that the Jubilee partners give to the government at no cost but in the build-up, GNPC actually charges Ghana Gas for the gas supplied.”

Mr Jantuah believes otherwise as he argues that, “It sounds like the government is trying as much as possible to satisfy Ghanaians through words but the government needs to be clear and explain to the people that for certain reasons, they will be able to reduce gas rates by a certain percentage.”

VRA indebted to Ghana Gas

According to the semi-annual report of the Public Interest and Accountability Committee, for 2017, VRA owed Ghana Gas to the tune of 107.18 million dollars with interest.

Ghana Gas in turn also owed GNPC to the tune of 132.03 million dollars.

A situation analysts believe requires pragmatic solution to turnaround the fortunes of the companies.

Regarding the use of the energy bond to settle the debts, Mr. Ishmael Egyekumhene and Kwame Jantuah had these to say.

“The debt that VRA is owing to Ghana Gas, those debts must be cleared because the country would have to pay the loans that it secured to build the gas processing plant,” Mr. Egyekumhene stated.

The PIAC Vice Chairman also maintained, “Let’s make sure that we pay these debts once and for all so that everybody knows the state of the companies involved. I am not too happy with the fact that we are playing yo-yo with tariffs. We cannot do that at all!”

Meanwhile, the AGI is optimistic that the affected institutions should put in place mechanisms to absorb them from any potential shock due to the reduction.

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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DVLA, Ghana Gas should have stopped unsuitable tankers – LPG Marketers https://citifmonline.com/2017/10/dvla-ghana-gas-should-have-stopped-unsuitable-tankers-lpg-marketers/ Tue, 17 Oct 2017 12:00:40 +0000 http://citifmonline.com/?p=362514 The LPG Marketing Companies Association has suggested that the Driver Vehicle and Licensing Authority (DVLA), and Ghana Gas, should be held accountable for failing to ensure the suitability of the gas dispensing tankers in recent gas explosions. According to the Association, whose members have received a lot of flak for an apparent failure to adhere […]

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The LPG Marketing Companies Association has suggested that the Driver Vehicle and Licensing Authority (DVLA), and Ghana Gas, should be held accountable for failing to ensure the suitability of the gas dispensing tankers in recent gas explosions.

According to the Association, whose members have received a lot of flak for an apparent failure to adhere to safety measures at their outlets, DVLA and Ghana Gas should not be absolved of blame for recent explosions, including the one at Atomic Junction last week, which claimed seven lives.

[contextly_sidebar id=”jCXuG4bBUhjB941bsyZeN2dAlWoLKPsx”]In a bid to curb such occurrences, the government has put in place a number of policies including the implementation of a gas re-circulation programme, which the LPG marketers are opposed to.

Speaking on Eyewitness News on Monday, the Public Relations Officer of the LPG Marketers Association, Kwame Owiredu, said that the LPG distribution outlets cannot be held solely responsible for the explosions, as the two aforementioned entities were mandated to ensure the road worthiness of the vehicles that transport and dispense the gas.

“We must have a broad view approach to LPG distribution. If there was a problem with the tanker, we don’t license tankers; we don’t license the BRVs. We have a licensing regime, the DVLA has to make sure that the BRVs are road-worthy and are worthy of what they are going to be used for. That is why we think the discussion of LPG should not be reduced to retailers and marketers alone,” he said.

“You can’t have one isolated issue and decide to make it the norm or what has been happening on a regular basis. Our drivers are being regulated by the NPA, they have training procedures that they go through. We are making the discussion look as though it’s [caused] by only LPG people. As an LPG operator, I don’t sign off on the road-worthiness of the tankers carrying gas from Atuabo or their worthiness to carry on the business. We have other institutions and regimes who have to do that.”

Kwame Owiredu explained that, the tanker drivers had expressed concerns about the gas which had been supplied from Atuabo, and drawn the attention of Ghana Gas and the NPA, who had not taken it up.

He insisted that, the LPG outlets and the drivers were being unfairly singled out for blame, while those mandated to regulate them had been let off the hook.

“The drivers observed that, with the gas they carry from Atuabo, they had noticed some mishaps with the carriage and reported the matter to Ghana Gas. They also alerted the NPA. At the point of loading at the depot, [Ghana Gas] could have checked that per the specification of their gas, the BRVs that are carrying their gas meet their specifications,” he said

“That is why this whole discussion should not be reduced to LPG retailers alone, because if you are loading a BRV at the depot and it doesn’t meet the specification to carry that particular gas, you should make the driver aware. You don’t let the driver carry something you know his vehicle is not worthy of carrying and discharge it at a point and when there’s a problem, you blame someone else. The whole safety issue should start from the depot.”

By: Edwin Kwakofi/citifmonline.com/Ghana

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Our gas did not cause Atomic Junction explosion – Ghana Gas   https://citifmonline.com/2017/10/our-gas-did-not-cause-atomic-junction-explosion-ghana-gas/ Mon, 16 Oct 2017 18:23:04 +0000 http://citifmonline.com/?p=362422 The Chief Executive Officer (CEO) of the Ghana Gas Company, Dr. Ben Asante, is refuting allegations that high pressures from gas produced by the company caused the leakage that led to the Atomic Junction gas explosion. Dr. Asante also disputed claims that gas from Ghana Gas is not odorized, hence cannot be detected early when there […]

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The Chief Executive Officer (CEO) of the Ghana Gas Company, Dr. Ben Asante, is refuting allegations that high pressures from gas produced by the company caused the leakage that led to the Atomic Junction gas explosion.

Dr. Asante also disputed claims that gas from Ghana Gas is not odorized, hence cannot be detected early when there is a leakage.

[contextly_sidebar id=”rohxJAVOxgLoqeISa4o7TXjBAUQWzQ0R”]Speaking to Citi Business News after a press conference, Dr. Asante explained that, Ghana Gas adheres strictly to the rules set by the Ghana Standards Authority in the production of gas to avert explosions.

“Ghana Gas LPG is made from raw gas. Its pressure is a little high. But I want to say this again, it is still within the limits of what Ghana Standards Authority (GSA) has stipulated”.

“Even if you put that aside, it is incumbent on any containing or handling vessels to make sure that the design of your vessels are not just to a very narrow bound of five bar. Even in most cases, for the piping, it’s got to be one and half times what you have,” he added.

Dr. Asante stated that, it is misleading for a section of the public to blame the Atomic Junction gas explosion on Ghana Gas product just because it has a pressure of 7.5.

“I don’t buy it that because Ghana Gas has got a vapour pressure of 7.5, so all our hoses are being damaged. It is easier to change that hose than to say we are not going to get our own indigenous gas. This is not the only LPG on the commercial market, and you will also note that it has been used over the last two years,” he maintained.

Dr. Asante disclosed that, the gas that leaked at the Atomic Junction gas station was not a product of Ghana Gas.

“It is instructive to note that, some of the accidents that happened at the discharge facilities actually didn’t have gas coming from Ghana Gas. These are low pressure gas coming from elsewhere” he stated.

The explosion at Atomic Junction in Accra killed seven persons, and left some 132 injured.

By: Lawrence Segbefia/citibusinessnews.com/Ghana

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Ghana Gas denies reports of ‘missing’ $47.4m gas funds https://citifmonline.com/2017/06/ghana-gas-denies-reports-of-missing-47-4m-gas-funds/ Tue, 20 Jun 2017 06:03:07 +0000 http://citifmonline.com/?p=329821 The Ghana National Gas Company has dismissed reports suggesting that it is unable to account for some $47.4 million accrued from the sale of raw gas to the Ghana National Petroleum Company (GNPC). Ghana Gas, in a statement signed by the Corporate Communications Manager of Ghana Gas, Ernest Owusu Bempah, described such reports as “untrue […]

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The Ghana National Gas Company has dismissed reports suggesting that it is unable to account for some $47.4 million accrued from the sale of raw gas to the Ghana National Petroleum Company (GNPC).

Ghana Gas, in a statement signed by the Corporate Communications Manager of Ghana Gas, Ernest Owusu Bempah, described such reports as “untrue and misleading.”

[contextly_sidebar id=”exVyyy1dCANSsKUelTjnJuBxs1rAMsad”]It further rejected claims that the Volta River Authority (VRA) owed Ghana Gas an amount of $ 434 million, saying “it is also incorrect that the Volta River Authority (VRA) owes Ghana Gas an amount of $434 million. Ghana Gas like any other entity acknowledges that it owes some of its partners in the energy sector but the figures being churned out are inaccurate.”

The company indicated that on the contrary, the “VRA as at 31st May owed Ghana Gas to the tune of $534.2 million, while Ghana Gas owed the GNPC an amount of $162.5 million as at 31st May this year [2017].”

Ghana Gas further explained that “VRA complains that its inability to settle debt to Ghana Gas is as a result of Electricity Company’s failure to pay huge debts owed VRA, while ECG blames its failure to settle debts to VRA on its consumers.”

It however indicated that, “government is working assiduously to resolve these cyclical debt issues to make the sector more financially solvent.”

“As a way of resolving these debt issues the government is creating a holding fund for all receivable in the power generation sector. This move is expected to create a cash waterfall to cater for the needs of all the stakeholders in the Energy industry,” the statement added.

GHANA NATIONAL GAS COMPANY REACTS TO MISCONCEPTION ON PIAC REPORT

Ghana National Gas Company (Ghana Gas) has taken note of various media reports on the Public Interest & Accountability Committee (PIAC) allegations that the company cannot account for $47.4 million being revenue from sales of raw gas to Ghana National Petroleum Company (GNPC).

The company wishes to state that the story is untrue and misleading. It is also incorrect that the Volta River Authority (VRA) owes Ghana Gas an amount of $434 million. Ghana Gas like any other entity acknowledges that it owes some of its partners in the energy sector but the figures being churned out are inaccurate.

Ghana National Gas Company also wishes to state the there is a cyclical debt challenge within the energy sector and the company is the most owed. To set the record straight, as at 31st May this year, VRA was indebted to Ghana Gas to the tune of $534.2 million. Ghana Gas on its part owes GNPC an amount of $162.5 million as at 31st May this year.

VRA complaints that its inability to settle its debt to Ghana Gas is as a result of Electricity Company’s failure to pay huge debts owed VRA whiles ECG blames its failure to settle debts to VRA on its customers.

However, we wish to state that the government is working assiduously to resolve these cyclical debt issues to make the sector more financially solvent.

At a way of resolving these debt issues, the government is creating a holding find for all receivables in the power generation sector.

This move is expected to create a cash waterfall to cater for the needs of all the stakeholders in the energy industry.

Ghana Gas wishes to indicate that it is collaborating with its partners and stakeholders in the sector to create a harmonious working relationship that has the potential to resolve challenges confronting the sector.

Signed

Ernest Kofi Owusu-Bempah Bonsu

Corporate Communications Manager, Ghana Gas

By: Marian Ansah/citifmonline.com/Ghana

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Our helicopters with Air Force, not missing – Ghana Gas https://citifmonline.com/2017/05/our-helicopters-with-air-force-not-missing-ghana-gas/ Wed, 24 May 2017 19:13:57 +0000 http://citifmonline.com/?p=322252 The Management of Ghana Gas has clarified that the helicopters procured for the security surveillance of the oil and gas enclave in the Western Region are currently stationed at the Air Force Headquarters at Burma Camp. There were claims that some helicopters purchased by the Mahama administration in 2015 for Ghana Gas were missing. [contextly_sidebar […]

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The Management of Ghana Gas has clarified that the helicopters procured for the security surveillance of the oil and gas enclave in the Western Region are currently stationed at the Air Force Headquarters at Burma Camp.

There were claims that some helicopters purchased by the Mahama administration in 2015 for Ghana Gas were missing.

[contextly_sidebar id=”TEVrZwUCymItjfHSLc8x4IIcRHyIlY24″]But responding to allegations concerning the whereabouts of the helicopters, Ghana Gas in a statement explained that “four (4) helicopters in total, not seven (7) as reported by some media outlets, were acquired.”

“The said helicopters were procured from China National Aero-Technology Import and Export Corporation (CATIC). The contract to that effect was signed on 21st December, 2017. The helicopters are currently stationed at the Air Force Headquarters at Burma Camp.”

The statement also noted that Ghana Gas does not have the expertise and hangars to operate and maintain the helicopters hence the reliance on the Air Force.

“The Ghana Air Force, however, possesses such facilities. Ghana Gas, therefore, mandated the Ghana Air Force to operate and maintain them on its behalf. The helicopters are in good working condition and not “broken down” as erroneously reported.”

helicopters for ghana gas (2)

At the time of commissioning of the four Z-9 EH helicopters, it was noted that they were going to be operated by the Ghana Airforce.

The allegations on the helicopters followed claims by the Co-chair of the Ghana Extractive Industry Transparency Initiative (GHEITI), Dr. Steve Manteaw that the $1 billion cost of the Atuabo Gas plant was overpriced by $40 million.

He also alleged that Chinese company which undertook the project, SINOPEC, engaged in fraudulent activities in the execution of the project.

Find below the full Ghana Gas statement

The Management of Ghana Gas wishes to respond to an allegation circulating in the media regarding the whereabouts of the helicopters, procured to provide surveillance services to the oil and gas installations in the Western Region.

The Company wishes to make it known to all stakeholders and the public that on Wednesday, 23rd September 2015, then President, His Excellency, John Dramani Mahama commissioned the four Z-9 EH helicopters at the Air Force Station at Burma Camp. The helicopters were to ensure adequate security surveillance of the nation’s oil and gas enclave in the Western Region.

Four (4) helicopters in total, not seven (7) as reported by some media outlets, were acquired. The said helicopters were procured from China National Aero Technology Import and Export Corporation (CATIC). The contract to that effect was signed on 21st December, 2017. The helicopters are currently stationed at the Air Force Headquarters at Burma Camp.

Ghana Gas does not have the expertise and hangars to operate and maintain the helicopters. The Ghana Air Force, however, possesses such facilities. Ghana Gas, therefore, mandated the Ghana Air Force to operate and maintain them on its behalf. The helicopters are in good working condition and not “broken down” as erroneously reported.

It is worth noting that, there is a helipad at the Atuabo Main Camp.

Dated: Wednesday, 24th May, 2017

ISSUED BY:

The Corporate Communications Department

Ghana Gas

By: Delali Adogla-Bessa/citifmonline.com/Ghana

 

 

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Chinese firm Yantai clarifies deal on Aboadze-Tema gas pipeline project https://citifmonline.com/2017/04/chinese-firm-yantai-clarifies-deal-on-aboadze-tema-gas-pipeline-project/ Fri, 28 Apr 2017 10:00:34 +0000 http://citifmonline.com/?p=314670 Chinese multinational firm, Yantai Jereh, has clarified issues surrounding a project implementation contract it signed with the Ghana National Gas Company (Ghana Gas). Yantai Jereh had disclosed that it has an agreement with Ghana Gas for the construction of an onshore 278 kilometer natural Gas pipeline infrastructure from the Takoradi Aboadze enclave to the power […]

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Chinese multinational firm, Yantai Jereh, has clarified issues surrounding a project implementation contract it signed with the Ghana National Gas Company (Ghana Gas).

Yantai Jereh had disclosed that it has an agreement with Ghana Gas for the construction of an onshore 278 kilometer natural Gas pipeline infrastructure from the Takoradi Aboadze enclave to the power enclaves in Tema in the Greater Accra Region.

[contextly_sidebar id=”WU842IfFZxLBXRPoe8W3f0RFr3OvNjeT”]The company noted that the agreement was entered on April 11, 2016.

But Ghana Gas in a statement argued that “the natural gas transmission pipeline has not been concluded nor executed.”

Meanwhile, a counter statement signed by Gao Yong, Senior Group Vice President of Yantai Jereh Oilfield Services Group Co. Ltd and Managing Director of Yantai Jereh Ghana Ltd explained that “the agreement signed by Ghana Gas and the Yantai Jereh group on 11th of April 2016 triggers the immediate commencement of specific on-site civil construction works, as well as various other activities related to the project which include but are not limited to geotechnical surveys and procurement of all long lead items such as pipes which will be used for the implementation of the project.”

“It is also of importance to clarify that the most recent agreement signed does not constitute the final Build Operate Transfer Agreement which is still being finalized by the parties prior to parliamentary approval,” the statement added.

Below is the full statement from Yantai Jereh:

YANTAI JEREH CLARIFICATION OF GHANA GAS AGREEMENT-“GHANA GAS SEALS DEAL WITH YANTAI JEREH GROUP”

As a publically traded listed company it is important that we clarify various news reports and media speculation around the agreement recently executed between our organization and the Ghana National Gas Company (Ghana Gas). As stated in some recent media reports, Yantai Jereh and Ghana Gas have indeed signed an exclusive Project Implementation Agreement for the construction of a natural gas pipeline from Takoradi to Tema which was a revival of a previous agreement signed in 2016.

However contrary to some misguided media reports, this agreement does not pertain to merely a front end engineering design contract. Since Jereh is a multi-national oil fields services conglomerate, it is important to clarify that the company does not engage in projects which are limited to merely engineering design activities.

It is also of importance to clarify that the most recent agreement signed does not constitute the final Build Operate Transfer Agreement which is still being finalized by the parties prior to parliamentary approval.

The agreement signed by Ghana Gas and the Yantai Jereh group on 11th of April 2016 triggers the immediate commencement of specific on-site civil construction works, as well as various other activities related to the project which include but are not limited to geotechnical surveys and procurement of all long lead items such as pipes which will be used for the implementation of the project.

Since this project is strategically key to both the Jereh Group and the Republic of Ghana, we strongly advise that all media outlets verify key facts prior to making reports which may not be accurate.

A statement by the Senior Group Vice President of Yantai Jereh Oilfield Services Group Co. Ltd, Gao Yong, indicated that “the Yantai Jereh Group values the strategic relationship which we have cultivated with both the Ghanaian Government and the Ghana National Gas Company and we look forward to executing the project in an expeditious and professional manner”.

Yours Sincerely,

Gao Yong

Senior Group Vice President of Yantai Jereh Oilfield Services Group Co. Ltd

Managing Director of Yantai Jereh Ghana Ltd

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana

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Probe tax waivers granted Chinese company – CSOs to Parliament https://citifmonline.com/2017/04/probe-tax-waivers-granted-chinese-company-csos-to-parliament/ Thu, 27 Apr 2017 09:46:25 +0000 http://citifmonline.com/?p=314318 Ghanaian civil society groups within the tax space, have urged Parliament to investigate tax waivers granted a Chinese Petrochemical Corporation, the SINOPEC Group, through an Engineering, Procurement, Construction and Commissioning (EPCC) agreement in 2014. The $152 million tax waiver was approved by Parliament on goods and equipment imported or purchased locally for the Western Corridor […]

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Ghanaian civil society groups within the tax space, have urged Parliament to investigate tax waivers granted a Chinese Petrochemical Corporation, the SINOPEC Group, through an Engineering, Procurement, Construction and Commissioning (EPCC) agreement in 2014.

The $152 million tax waiver was approved by Parliament on goods and equipment imported or purchased locally for the Western Corridor Gas Infrastructure Development Project.

Following its conference on illicit financial flows into Ghana, the groups, led by the Integrated Social Development Center (ISODEC), accused the then Parliament of negligence hence the call.

In a Citi News interview, ISODEC’s Campaign Coordinator, Dr. Steve Manteaw, said Parliament did not follow the due process, but still found time to approve the tax waivers.

Dr. Stephen Manteaw
Dr. Stephen Manteaw

“Parliament was a bit negligent in not ensuring that due processes were followed in terms of ratifying that transaction which was essentially an international transaction between Ghana Gas, a Ghanaian entity, and an international entity, SINOPEC.”

Waivers approved without perusing contract

Dr. Steve Manteaw also noted that “the same Parliament, however went out of its way to approve tax waivers which were contained in the contract without seeing the contract itself, and therefore not able to satisfy itself on the grounds for the tax waivers.”

He conceded that, an investigation may not correct this mistake, “but will help to lay down processes that will forestall a re-occurrence of these situations.”

Sinopec International Petroleum Services Ghana Limited, a subsidiary of China Petroleum & Chemical Corporation SINOPEC of China, is helping the Ghana National Gas Company Limited (GNGCL) build a multipurpose port facility.

The facility at Domunli in the Jomoro District of the Western Region,  is primarily meant for exporting Liquefied Petroleum Gas (LPG) and condensates from the Atuabo Gas Processing Plant (GPP) by sea to Tema.

The company in an earlier arrangement was able to raise funding towards construction of the Atuabo Gas Processing plant with about $1 billion within a year to complete development of the gas plant.

By: Sixtus Dong Ullo/citifmonline.com/Ghana

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Ghana Gas seals deal with Chinese multinational company https://citifmonline.com/2017/04/ghana-gas-seals-deal-with-chinese-multinational-company/ Wed, 26 Apr 2017 06:20:17 +0000 http://citifmonline.com/?p=314059 The Ghana National Gas Company (Ghana Gas) has signed a project implementation contract with a Chinese multinational oil fields service conglomerate known as the Yantai Jereh group. The project agreement is for the construction of an onshore 278 kilometer natural Gas pipeline infrastructure from the Takoradi Aboadze enclave to the power enclaves in Tema in […]

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The Ghana National Gas Company (Ghana Gas) has signed a project implementation contract with a Chinese multinational oil fields service conglomerate known as the Yantai Jereh group.

The project agreement is for the construction of an onshore 278 kilometer natural Gas pipeline infrastructure from the Takoradi Aboadze enclave to the power enclaves in Tema in the Greater Accra Region.

The recent execution of the agreement dated 11th April 2017 represents a revival of a project which was initially conceived in 2016.

This enabled the immediate commencement of site work such as topographical/ geotechnical site surveys and Front end engineering designs (FEED) which are already underway, as well as on site  civil construction activities which will commence within the next ten days.

a-pix-of-a-pipeline

The financial structure of the project includes an innovative  15 year Build operate and transfer (BOT) model where by the Yantai Jereh group along with their investment partners will fully pre-finance  all construction activities related to the project with absolutely no upfront cost being born by the Ghanaian government.

The entire investment made by the Chinese conglomerate will be recouped by charging transportation fees based on volumes of gas being moved through the pipeline over a period of 15 years after which ownership of the entire infrastructure will be transferred to the Ghanaian government completely free of any recurring charges or financial encumbrances.

The proposed gas transportation charge of approximately $1.56USD per MMBtu (A standard unit of measurement used to denote the amount of heat energy in fuels and the ability of appliances) is a fraction of the $4.05 USD per MMBtu historically charged by the offshore West African Pipeline Company (WAPCO) for similar natural gas transportation services.

Other advantages of the onshore pipeline include the fact that it will enable the secure transportation of natural gas energy resources generated from oil fields located in the Western region to the East of the country whilst traversing multiple regions along the coast line of Ghana.

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Multiple regional natural gas distribution stations will be constructed between the two major load centers of Takoradi and Greater Accra with stations being located in Takoradi, Cape Coast, Winneba, Nsawam, and Tema  earmarked for phase one as well as a  potential station in the Volta region in phase two of the project ,these stations will   enable manufactures wishing to construct factories to connect directly to the infrastructure thus receiving cost effective natural gas to power their  industrial operations.

The project marks a momentous milestone for the newly elected NPP government who has pledged massive infrastructure development and industrialization initiatives such as “one district, one factory” to spur economic growth.

Yantai Jereh’s Ghana based Senior Vice President for West Africa, Gao Yong, who will take responsibility for the implementation of the project went on record to say “This project represents a massive opportunity of growth for both Ghana and the Yantai Jereh group, we have been highly impressed with the new administration and their ability to get things done quickly and professionally”.

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana

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Nzema paramount chief backs new Ghana Gas CEO https://citifmonline.com/2017/03/nzema-paramount-chief-backs-new-ghana-gas-ceo/ Wed, 01 Mar 2017 15:30:39 +0000 http://citifmonline.com/?p=298198 The Paramount Chief of the Western Nzema Traditional Area, Awulae Annor Adjaye III, has said he was not part of other members of the Nzemamanle Council, who opposed the appointment of Dr. Ben Asante, as the CEO of Ghana National Gas Company Limited. According to him, the opposition against Dr. Asante’s appointment on tribal lines, […]

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The Paramount Chief of the Western Nzema Traditional Area, Awulae Annor Adjaye III, has said he was not part of other members of the Nzemamanle Council, who opposed the appointment of Dr. Ben Asante, as the CEO of Ghana National Gas Company Limited.

According to him, the opposition against Dr. Asante’s appointment on tribal lines, is not in the best interest of the country.

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Awulae Annor Adjaye III made these comments at Benyin in the Jomoro District of the Western Region, when Dr. Ben Asante paid a courtesy call on him.

Awulae Annor Adjaye III thus declared his support for Dr. Ben Asante, and wished him well in his new appointment. He urged him to consider employing qualified Nzema sons when the opportunity comes, as well as making his administration open to all.

Dr. Asante in his response pledged to work to the satisfaction of all, and to support Nzema youth as part of the corporate social responsibility of Ghana Gas.

Dr. Ben Asante had in sometime last week visited the Paramount Chief of the Eastern Nzema Traditional Area, Awulae Amehere Kpanyinli III, who also declared his support for his appointment.

For now, it is becoming evident that the earlier opposition declared by the Paramount Chief of the Nsein Traditional Area, Awuale Agyefi Kwame, and Awulae Angamatu Agyan II, Paramount Chief of Bamianko, was not the position of all the seven chiefs on the Nzemamanle Council.

Dr Ben K. D Asante, a Renowned Engineer, was on January 30, appointed as the Caretaker Chief Executive Officer (CEO) of the Ghana National Gas Company (Ghana Gas).

His caretaker position means he will act as the CEO of Ghana Gas until a substantive one is approved. In his acting role, he is also not permitted to take decisions that have policy implications.

About Dr Ben K. D Asante

Dr. Ben Asante has over 25 years of experience in the oil and gas industry. He was the technical Director of Ghana’s first Gas Infrastructure project and also developed the gas infrastructure master plan for Ghana in 2008.

He has also served as a consultant to the Ghana National Petroleum Corporation (GNPC) and provided engineering services, project management and technical support for various projects across the world including UAE, Argentina, Brazil, Canada, China, Mexico, Russia, Thailand and USA.

He has worked for major companies including Nova/TransCanada and Enron and Jacobs Engineering.

Dr. Ben Asante is a product of Mfantsipim school and holds a BSc in Chemical Engineering (KNUST, Ghana), and an MSc in Chemical Engineering from the University of Calgary, Canada.

He also has a PhD in Chemical Engineering from Imperial College, London /University of Calgary and has taught gas processing and pipeline engineering at Imperial College, UK and KNUST, Ghana.

By: Obrempong Yaw Ampofo/citifmonline.com/Ghana

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