The Ghana National Gas Company (GNGC) says the indebtedness of the Volta River Authority (VRA) has risen to $850million as at May 31, 2018.
This is higher than the $750m that the Public Interest and Accountability Committee (PIAC) reported as the indebtedness as at the end 2017.
Ghana Gas also owes Ghana National Petroleum Corporation (GNPC) an amount of $265million.
Head of Communication at Ghana Gas, Ernest Kofi Owusu-Bempah Bonsu, in a statement to clarify portions of publications emanating from PIAC’s Annual Report on the Management of Petroleum Revenues for 2017, said government is collaborating with the Ministry of Energy, upstream and downstream partners as well as stakeholders in the industry to clear the cylindrical debt in the sector.
He explained that Ghana Gas was commissioned on November 2014 and started full-fledged operations in April 2015 pointing out that the earlier story erroneously stated that Ghana Gas has been in operation for six years.
“We wish to clarify that the amount of gas flaring and re-injection is based on the Calorific Value (HVC) of gas which is related to the volume by the Heating Value (HV), which is about 1,000 Btu/scf.
“Thus, 30,831 MMscf multiplied by 1,000 Btu/scf will give 30,831,000 MMBtu and not a calorific value of 2,681,617.92 MMBtu as PIAC stated,” he added.
Owusu-Bempah noted that the price of raw gas of $2.90 per MMBtu charged by GNPC for Jubilee is accurate, but the price of the lean gas stated as $8.8424 is in fact the delivered gas price.
He said this is a composite of the commodity of $2.90 plus associated tariffs for processing and transportation in addition to Public Utilities Regulatory Commission (PURC) regulatory levy.
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