Energy Ministry debunks ACEP-IMANI claims of wrongdoing over GENSER/GNPC deal

The Ministry of Energy is debunking claims in a report authored by the Africa Centre for Energy Policy (ACEP) and IMANI Center for Policy & Education regarding an enquiry report by the Parliamentary Select Committee on Mines and Energy pertaining to the Gas Sales Agreement between the Ghana National Petroleum Corporation and Genser Energy Ghana Limited.

The ACEP and IMANI in their report, among others accused the Energy Minister, Dr. Matthew Opoku Prempeh of inconsistencies when he appeared before the Parliament’s Select Committee on November 24, 2022.

In a swift rebuttal, the Ministry states that it would ordinarily not respond to the two organizations especially as it does not speak for the select committee and the report is directly in relation to that same.

The Ministry said it however finds it necessary to respond to portions of the report that relate to false accusations of wrongdoing by the two organizations on the part of the Energy Minister.

In explaining the statement by the Minister that the Ministry was not aware of the gas price negotiated between Genser and GNPC, the statement said the Hon. Minister indicated that the Ministry is not a party to the Contract and therefore could not speak to the detailed pricing components off-head, especially when the matter as at the time was in court.

He, however, informed the Committee that upon a written formal request, the Ministry will assist in providing the details of the contract, as well as any other issue of importance to the Committee.

On the issue of the Committee's claims during the hearings that Genser was given DIDT status by the Ministry of Energy, the Ministry said Genser was first issued a DIDT by the GNGC in 2017.

Subsequently, DIDTs were issued by the Ministry to other industrial customers (ceramic manufacturing companies) as an incentive to boost gas consumption in the period of excess gas with the associated take or pay commitments.

However, it must be made clear that the DIDT policy predates the assumption of office by the current Energy Minister, Dr. Matthew Opoku Prempeh, who has since advocated for the removal of the DIDT policy.

The Ministry stated unequivocally that in as much as it has oversight responsibility over energy sector institutions, it is not obliged to meddle in direct contract negotiations between the sector institutions and potential investors unless the Ministry’s assistance is expressly sought.

The Energy Minister must, therefore, be understood within this context.

The statement further implored the discerning public to disregard any attempt to soil the reputation of the Energy Minister whose major preoccupation since assuming office has been to bring to the barest minimum disruptions in power supply and improve the resilience of the energy sector.

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