Free gas from Jubilee Fields for power generation to cease by year-end

Gas for electricity generation from the Jubilee Fields will no longer be free by year-end.

Under the erstwhile Kufour government, Ghana negotiated this free gas arrangement with Tullow oil.

Gas is cheaper than crude when used for a generation, but free Gas from jubilee had always been preferred due to the impact on pricing.

But at a presentation on the proposed tariffs, the Ghana National Petroleum Corporation (GNPC) said they had considered this development in their computation of gas prices.

“The Jubilee Foundation Volume, which we have enjoyed over the years as free gas, is coming to an end.

“The good news is that it will still be cheaper, but it won’t be the cheapest particularly; it will be more expensive than now,” the GNPC representative said.

But speaking on JoyNews’ News Desk, an Energy Expert, Kwame Jantuah, cast doubt that the change will cause an increment in electricity tariffs in the country.

According to him, currently, the problem at stake is insignificant and wouldn’t affect the pricing.

“They are negotiating a certain price. And from what I understand, it is a very low figure because PURC’s [Public Utilities Regulatory Commission] responsibility is to ensure that there is no unwarranted burden on the people.

“So they have to really go through whatever proposal that have been brought with a fine-tooth comb and look at what kind of negotiation GNPC have had with the other IUCs to be able to satisfy themselves with the kind of tariffs that they are asking for.”
Source: Free gas from Jubilee Fields for power generation to cease by year-end –