President Mahama’s 24-hour economy policy has disrupted shady deals buried in the crucial Gas Processing Plant II (GPP II) that the erstwhile Akufo Addo administration was setting up as a private cash cow.
The swift action taken by the new administration to kick-start the GPP II project has already started unearthing murky dealings and reported grand plans by the then-Akufo Addo administration to sideline parliamentary oversight. These dealings have been revealed in explosive documents.
Barely months into office, Mahama’s government has wasted no time in prioritizing this vital infrastructure, recognizing its pivotal role in ensuring a reliable and affordable power supply – the very bedrock of a thriving 24-hour economic activity, and in the process has discovered the rot left behind by the past administration.
SHADY DEALS UNDER AKUFO-ADDO EXPOSED
Shocking details have emerged exposing a potentially scandalous attempt to award the lucrative GPP II project through questionable means. Documents suggest that a company, Gas Gathering Limited, was hastily formed by Intel Logistics Bureau – linked to the son of President Akufo-Addo’s cousin and Executive Secretary, Asante Bediatuo. The company was set up alongside the consortium Jon Moore and Axxela.
Disturbingly, it appears this consortium sought to bypass crucial parliamentary scrutiny. M/s Phoenix, the leading contender during the initial tender process, was relegated to the role of international technical consultants for this newly formed Gas Gathering Limited.
Further damning revelations indicate that a Project Implementation Agreement was signed with Gas Gathering Company despite no such entity being evaluated during the tender process.
Adding fuel to the fire, former Energy Minister Mathew Opoku Prempeh allegedly directed that an additional 100 million standard cubic feet per day (mmscfd) of gas from the Jubilee and TEN fields be diverted to an onshore gas conditioning plant owned by Genser.
He also reportedly approved the construction of an offshore pipeline by Genser in collaboration with the Ghana National Petroleum Corporation (GNPC), raising fears of Genser potentially taking over the vital roles of the Ghana National Gas Company (GNGC) through agreements that would be “difficult to reverse.”
Even more astonishing is the revelation that the former CEO of GNGC, Dr. Ben Asante, while reportedly undergoing medical treatment in the USA, convened an emergency ETC meeting to approve the award of the contract to the controversial Gas Gathering Company.
The details of the proposed Operations and Maintenance (O&M) agreement are equally eyebrow-raising. This 15-year deal, based on a Build-Co own- Co operate and Transfer (BCCT) model, would have seen Gas Gathering Company handed over all liquids and a staggering 60% of lean gas for investment recovery.
A NEW DAWN FOR GHANA’S GAS SECTOR!
Fast forward to the new Mahama administration, and the narrative has dramatically shifted. Recognizing the critical importance of GPP II, the government has swiftly initiated a transparent and strategic approach to bring the project to fruition.
Dubbed the “Atuabo GPP Expansion Project – GPP2,” the ambitious plan will see the construction of a second gas processing plant adjacent to the existing Train 1 facility in Atuabo, Western Region. This expansion will boost Ghana’s capacity to process up to 150 million standard cubic feet per day (150MMSCFD) of rich natural gas from the Jubilee, TEN, and other offshore sources.
Crucially, GPP II is urgently needed to utilize the excess raw gas from upstream producers, preventing potential waste and ensuring optimal resource utilization.
The state-of-the-art plant will employ turbo-expander technology to maximize the recovery of valuable Liquefied Petroleum Gas (LPG) and condensate. This will not only enhance domestic LPG supply but also provide feedstock for the burgeoning petrochemical industry.
NDC’S COMMITMENT TO GPP II
The Mahama government has clearly signaled its unwavering commitment to seeing this project through. By opting for a “Turnkey EPCC + Financing Contract” with a strategic investor, Ghana Gas aims for a swift and efficient execution, with a projected timeline of just 24 months for completion after financial closure.
The financial framework is equally strategic, incorporating an “NGLs Offtake Contract” that will allow the investor to monetize the incremental volumes of LPG and condensate produced by the new plant. This innovative approach ensures a sustainable financial model for the project.
POWERING MAHAMA’S 24-HOUR ECONOMY
The significance of GPP II to President Mahama’s 24-hour economy policy cannot be overstated.
A reliable and affordable supply of lean gas is essential for powering industries and businesses around the clock. The increased production of LPG will also have a direct positive impact on households and reduce reliance on imported fuels.
Furthermore, the project is projected to generate substantial revenue for the government and Ghana Gas, with an estimated gross annual revenue of around US$ 270 million and a net revenue of US$ 117 million. This will not only contribute to the national coffers but also ensure the long-term sustainability of the gas processing infrastructure.
A CLEAN BREAK FROM THE PAST
The proactive and transparent approach adopted by the Mahama administration stands in stark contrast to the alleged underhand dealings that characterized the previous government’s handling of the GPP II project.
This decisive action demonstrates a clear commitment to good governance and prioritizing the national interest.
With the wheels now firmly in motion for the Atuabo GPP II expansion, President Mahama’s vision of a vibrant 24-hour economy is gaining significant momentum, promising a brighter future for Ghana’s economic landscape.
The nation watches with anticipation as this crucial project unfolds, delivering on the promise of progress and prosperity for all Ghanaians.