Alex Mold warns government against natural gas deal

News of the Sunday, July 14, 2019

Source: Myjoyonline.com

2019-07-14

An expert in finance and energy warned the government against the lack of transparency of all agreements supporting certain liquefied natural gas (LNG) contracts signed with certain companies.

Alex Mold, who is also the former CEO of the Ghana National Petroleum Corporation, said the contracts for the Helios / China Harbor Engineering (GNPC) and Rosneft LNG regasification project were to be audited.

He expressed concern about the apparent lack of world-clbad technical, commercial and legal advisors of all LNG regasification project agreements signed a year ago on behalf of the Government, taking into account the brevity of the negotiation period.

Helios and China Harbor Engineering and GNPC are building a terminal for the regasification project, which will be managed by Tema LNG Terminal Company.

Last June, the GNPC signed a new agreement with Rosneft on the sale and purchase of gas for the same natural gas supply contract it had signed with Gazprom in September 2017.

The energy experts then questioned the reasons for the repeal of the Gazprom contract and the costs badociated with the repeal of this contract.

"It has now been a year since stakeholders, including Parliament and civil society, do not receive a lot of information on the LNG regasification project from the government, through the Ministry of Energy." 39; Energy or GNPC. There are more outstanding questions that require answers, "Mold told the media during an interview at the LNG Western Africa 2019 conference in Accra.

"I do not know the details of the LNG re-gas contract, I have not seen any agreement, I think it is supposed to build a breakwater, I do not know who will bear the cost. " whether it is government as GHAPOHA or whether it should be transferred to the project. If it is to be forwarded to the project, we must examine the overall economic data. We must also examine the breakwater supply of gas. "

"But it's very interesting that a transaction of this size, size, and difficulty is signed within three months, something we have to look at. East is dotted and Ts are crossed in. It's about getting the right consultants to make sure the feasibility is done before making any decisions. "

"It also requires understanding what security structure is hiding behind the transaction and what commitment Ghana has made to the project – time will tell."