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GNGC maintains the Jubilee gas would be competitive in pricing
Posted on: 16-Aug-2012         Source: myjoyonline.com
The Ghana National Gas Company, GNGC has dismissed suggestions that Jubilee gas is likely to be non-competitive in terms of pricing.

According to him, the company’s latest estimates reveal Ghana’s market price could rather be lower compared to that from the West African gas pipeline.

It follows concerns raised by Energy Economist, Mohammed Amin Adams that even though the gas pricing policy is currently under consideration; the capital expenditure of the jubilee field where the gas is being extracted is only most likely shoot-up the price.

“The difference is that in the case of Ghana, the capital expenditure from the Jublieee field has not been factored into the pricing and so if factored into the pricing, it would be way higher than that of the West Africa Gas Pipeline – making it non competitive, he explained.

The CEO of the Ghana National Gas company, George Sipa-Yankey however disagrees.

“The capital expenditure of the Jubilee field would certainly be factored into it else how would the producers be able to recover their cost of production. Ghana gas Company expects to sell the gas below that from Nigeria” he noted.