Tariff on gas to go up from March

The tariff paid on gas supply for both domestic and industrial use may be going up from March this year 2019.

This is due to the decision by the government to restrict gas supply from the Jubilee field as a result of the coming on stream of gas from the ENI field.

The restriction follows the government’s agreement with the ENI to consume the gas to be produced from the Sankofa field.

The Sankofa Gas produced by ENI is expected to come on stream from March 2019 to produce associated gas to the Ghana Gas Company to power the Karpowership plant.

The higher price in the commodity is as a result of the processes associated with the processing which is part of an agreement signed between Eni and the government of Ghana.

Speaking at a workshop on gas price formation by the Imani Africa, Commercial Director at Ghana Gas, George Adjei indicated that the price of $7.5 per standard cubic feet of gas transported will make the gas higher than the price Ghana is currently getting from the Jubilee field.

“Transportation of gas from jubilee is restricted and will be taking effect from March this year. We have been asked to make use of the Eni gas from the Sankofa field this year, however, the pricing level for ENI gas is different from that of Jubilee. It means higher gas tariff in 2019 to be paid by consumers” he said.

Energy Economist and senior fellow at IMANI, Dr Theo Acheampong believes even though the agreement is already signed, the government can intervene to get the price down.

“Though I don’t think government can do much, the little taxes and rent charges can be reduced to make the price less for consumers. The charge when transferred onto power tariffs will actually be very significant” he noted.

Most participants at the workshop raised concern about the number of regulators in Ghana’s gas market.

The event was also used to launch a report on gas pricing in Ghana.

Source: Myjoyonline