Gas price reduction will make a big difference – Awotwi

Gas price reduction will make a big difference – Awotwi

Kweku Awotwi, Managing Director of Tullow Ghana Gas is relatively expensive and reducing the price will go a long way to stimulate growth not only among businesses but the country as a whole, the CEO of Tullow Oil, Kweku Andoh Awotwi, has suggested

There have been calls by energy experts for the reduction of gas prices, and Mr. Awotwi reckons those calls are germane.

“It is true that the terminal gas pricing in the country is quite high. I think PURC has a price of US$7-30 a million btu, and that translates to about US$40 a barrel of oil. When you look at other countries, for instance the US, gas price is less than US$3. People ask why it is so expensive, and among the reasons is that it’s tied to infrastructure that was built for the first time; but it is true that gas is relatively more expensive, and it may make a difference when prices are reduced.

“I think there is a challenge between reducing prices and recovering the cost of initial investment, but it could make a difference,” he told B&FT on the margins of the first investiture and induction ceremony of the Chartered Institute of Supply Chain Management (CISCM) Ghana, in Accra on Thursday.

Reports have already indicated that the tariff paid on gas supply for both domestic and industrial use may be going up from March this year, 2019.

This is the result of government’s decision to restrict gas supply from the Jubilee Field due to the coming onstream of gas from the ENI Field.

The restriction follows government’s agreement with ENI to consume the gas to be produced from the Sankofa Field.

The Sankofa Gas produced by ENI is expected to come onstream from March 2019 to produce associated gas for the Ghana Gas Company to power the Karpowership plant.

Ghana has made significant savings and met environmental benchmarks due to the gas sector.

However, it’s faced with structural non-payment issues due to inability to pay for gas supplied by exploration and production companies to the Ghana National Petroleum Company through the Ghana National Gas Company for use by the Volta River Authority and other Independent Power Producers.

In Ghana about 60 percent of power comes from thermal sources, statistics show. Conduct research into innovation At the CISCM event, he urged supply chain management practitioners to conduct research into integrated supply chains to facilitate policy initiatives of businesses and government.According to Mr. Awotwi, […]

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.

Leave a Reply