Extract from GNPC- Genser Contract

Ghana Gas has the largest pipeline complex in the country. Roughly $1.6 billion of equity and public/ publicly-guaranteed debt have gone into this huge infrastructure base. All the offshore pipelines that bring the gas from the sea to land (the most expensive form of gas transmission) belong to Ghana Gas. Yet Ghana Gas is paying an average wholesale price of about $5.4 per unit for the gas it retails. Ghana Gas provides clear local benchmarks for how to value the contribution of pipeline infrastructure to cost buildup.

In 2020, Genser Energy signed a deal to buy natural gas from GNPC at a cost of $2.79 per Metric Million British Thermal Unit (MMBtu). “MMBtu” is a unit used to measure gas flow in the gas industry. This was after it had committed in 2018 to buy gas at $6.5 from Ghana Gas if it succeeds in being classified as an “strategic industrial consumer” and if not then at $7.29. When Ghana Gas tried in February 2019 to get the Energy Commission, a key regulator, to designate Genser as a strategic consumer and thus to justify the lower price, Energy Commission refused.

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