Ghana has paid $3.6bn for Mahama’s Sankofa Gas pipeline deal – Ghana Gas

The Akufo-Addo administration has said it has so far paid an amount of $3.6 billion in the past seven years for an ENI Sankofa gas pipeline deal signed by the Mahama administration.

Director of Public Affairs of the Ghana National Gas Company (GNGC), Ernest Owusu Bempah, told journalists in Accra on Tuesday, November 1, that the contract is the most expensive gas contract in the world.

He explained that every month, Ghana is paying $46 million, making it $552 million yearly.

This contract, he intimated, was signed for 20 to 25 years.

He said that the Akufo-Addo government had no choice but to continue with the contract because of the terms and conditions.

“This contract was signed for 20 to 25 years, monopoly for that period, and the IMF questioned it,” he said.

“We wouldn’t be going to the IMF but for some of these reckless dubious contracts signed by the Mahama administration,” he stressed.

Mr Owusu Bempah further explained that the contract is partly to blame for the country’s current economic challengesssed that the government is unable to reduce the electricity cost for thermal generation.

Former President Mahama signed the agreement with ENI and Vitol Energy at a ceremony at the Peduase Lodge near Aburi in 2015.

This was, at the time, probably the most significant single most significant foreign direct investment in West Africa and Ghana since independence.

The project was situated in the Western Region.

The oil production from the offshore cape three points was estimated at eighty thousand barrels per day.