Ranking Member of the Mines and Energy Committee John Abdulai Jinapor, recently commended Genser Energy Ghana Limited (GEGL) for the combined gas and pipeline infrastructural project that it has started undertaking following the agreement with the Ghana National Petroleum Corporation (GNPC).
He indicated that Genser Energy is an indigenous company that is boosting local capacity by training Ghanaians and hence needed to be protected by the laws of Ghana.
Speaking to journalists after a recent field tour of the Genser facility to ascertain for himself the work of the company, the Yapei Kusawgu lawmaker said “I think so far it has been very impressive, I have had the brief already even before this field research but sometimes it is better you come and see it for yourself.
“Having spent all these days touring, asking questions, and experiencing for ourselves the work Gener is doing, I can only say that it is highly commendable. This is where we need the private sector to partner government, to partner with the nation to ensure that we bring about the development, we bring about the structural development and deal with the challenges facing us especially as we move into the gas era, it is important that we continue such project so that we can shift from the ordinary liquid fuels and utilize our own gas.
“We don't want to flare gas, we have a zero policy to flare gas and so clearly, I want to commend them. What we can do is to support them, and give them the needed environment and the needed legal framework in order that they can work well. We look forward to them completing this project and I will wish that they even extend this project into the northern part of the country because that will be very useful.”
He added “I am told that it is largely an indigenous company and so we must protect them with all the laws that will favor them, environmental laws and so many other things. Sometimes it is very difficult for them to get the right of way, impediments here and there but the government can intervene and ensure that all these things are addressed. Parliament can also pass some very good legislations that will boost the local capacity. If local entrepreneurs can do this then they need the support of parliament, they need the support of the executive, they need the support of the judiciary and they need the support of the whole Ghanaian society and so let us give them whatever support they need.
“We will also encourage Genser to do the right thing, to do what is proper, and to take into account the national need. But I am very satisfied so far with the work that I have seen, it is highly commendable and I think that we ought to give them the needed boost.
“I have realized that they are training a lot of Ghanaians, which is highly commendable and I think that that is what they should focus on so that even as they expand they build capacity, they improve on their technology, know-how technical logical transfer. So far what I have seen is highly commendable, I also think that they should boost their public relations, it does appear that they are doing a lot but a lot of people do not know what they are doing, and a lot of members of parliament are very impressed and surprised that local enterprises can do this massive industrial project.”
The Parliamentary Select Committee on Mines and Energy has found no evidence of any losses from a deal between the Ghana National Petroleum Corporation (GNPC) and Genser Energy Ghana Limited (GEGL), concluding an investigation into unfounded claims of irregularities.
The investigation was initiated in response to claims made by the African Centre for Energy Policy (ACEP) and the IMANI Center for Policy and Education in July 2022 alleging incorrectly that the deal incurred a loss of $1.5 billion for the nation. The Committee's report instead found benefits for Ghana far exceeding that sum.
If it were about math and not politics, the report would settle the matter.
The ACEP and IMANI reports raised concerns over a Gas Sales Agreement (GSA) between GNPC and Genser Energy Ghana Limited (GEGL), asserting that Ghana stood to lose the “whopping and galactic sum of $1.5 billion” due to this arrangement.
The allegations raised by ACEP and IMANI claimed GNPC sold gas to Genser at significantly reduced rates compared to its purchase price, resulting in a perceived subsidy.
Following an 11-month-long investigation, the Parliamentary Committee has refuted the claims made by ACEP and IMANI, stating that the GSA is not a “sweetheart contract.”
The Committee found the computation methods used by ACEP and IMANI faulty. The CSOs calculated a hypothetical loss based on the contractual sum of $2.79/MMBtu. But that price reflects offsets from a capacity charge of $3.29/MMBtu.
The Committee found the arrangement much to the Nation's benefit, presenting 11 key economic advantages associated with the deal ranging from energy security to job creation; from the development of future industries to foreign direct investment.