NPP still telling lies- No US$ 1 billion Savings made on Gas Contracts

It has emerged that the Mahama led NDC govt was only in discussions with companies that wanted to sell Natural Gas to Ghana and that no completed binding Contracts were signed for Liquified Natural Gas (LNG) nor for a Floating Storage Regassification Unit (FSRU).

This reveals yet another untruth being peddled by the Akufo Addo government to tarnish the reputation of his predecessor.

The only signed Gas contract was with eniGhana/VITOL to develop the Sankofa Gye Nyame fields (SGN) in the eniGhana operated OCTP block;

All the three companies were to provide their own LNG and regassification units (FSRU).

Checks at GNPC indicate that they were even prepared to give two of the companies (excluding the Sahara led Consortium) some security structure (LCs and guarantees) so that they could all raise the financing to provide the FSRU.

GNPC had signed some form of pre-Facility Utilization Agreements (FUA) which had Conditions Precedents for the suppliers to meet which they all have not met.

Therefore the spurious savings the minister of finance, Ken Ofori Atta, is talking about does not arise. Per the eni/VITOl field development contract, the contractor (signed in Dec 2014 under President Mahama) was to use the ACTUAL AMOUNT spent in developing the field in arriving at the final price of Gas and not the POD estimates which was used at arriving at the preliminary nominal Gas price.

So, there is no renegotiation as purported by Mr Ken Ofori Atta, but rather an actual price using final development expenditure as against the forecast prices used in the PoD to arrive at the nominal price of $9.80.

What do you think?

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