By Prospectus Mojiddo
Ghana National Gas Company (Ghana Gas) is owing Ghana National Petroleum Corporation close to $1Billion, being cost of raw gas it has received from the state hydrocarbon company without paying the latter.
Between January and June 2018, Ghana Gas sold processed gas with total invoice value of $160,648,513.18. This amount comprised expected revenue from the sale of Lean Gas ($ 137,248,841.58), representing 86% percent, expected revenue from LPG, $19,723,641.34 (12%) and condensates, $3,676,030.26 (2%), according to a report by the Public Interest Accountability Committee PIAC, on the management of Petroleum Revenues in Ghana.
Even though Ghana Gas received $46,342,944.10 as proceeds from gas revenues, it made no payment to Ghana National Petroleum Corporation (GNPC) in respect of gas supplied, for which reason no gas receipts were realised in the Petroleum Holding Fund, PHF.
Ghana Gas explained to the PIAC that it used the realised revenues to cover its operational cost.
In the event, Ghana Gas’ indebtedness to GNPC stood at $45,170,192.14, between January 1 and June 30, 2018, with an outstanding opening balance of $230,315,198.37, bringing the total indebtedness to $275,485,390.51.
Cumulatively, receivables due Ghana Gas as at June 2018 stood at $873,767,914.87 (including interest charges for the period January to June 2018).
PIAC advises that Ghana Gas must discontinue the practice of retaining gas revenues. Receipts from the sale of gas must be applied to defray the cost of raw gas supplied by GNPC, for lodgement in the PHF in accordance with Sections 2 & 3 of the PRMA.
This article was published in the March 2019 edition of the Africa Oil+Gas Report