The Ghana National Petroleum Corporation (GNPC) has, upon the approval of the board, concluded negotiations of a Gas Sale and Purchase Agreement (GPSA) with Gazprom.

The agreement is based on the supply of Liquefied Natural Gas (“LNG”), which will subsequently be converted to gas, through an LNG regasification facility located in Tema.

Gazprom is the world’s largest supplier of natural gas and the largest owner of gas-related infrastructure, with a turnover of $100 billion, double Ghana’s GDP.

The long-term supply contract is expected to significantly increase the country’s energy security, providing Ghana with 250 MMscf/d of competitively priced gas.

The contract volumes are sufficient to satisfy more than 1000 MW of thermal generating capacity and will go a significant step towards permanently removing the scourge of dumsor.

The commercial terms of the agreement will deliver approximately a $1billion in savings when compared to agreements signed previously.

Sources close to the contract disclosed to the GRAPHIC BUSINESS that following an open and transparent review of all proposals undertaken by the sector ministry, GNPC extracted further material value through direct bilateral negotiations with Gazprom.

In addition, the negotiated structure of the Gazprom transaction will remove the previous requirement for any capital from GNPC and the government of Ghana, while at the same time taking $2bn of risk previously held by GNPC.

The GRAPHIC BUSINESS understands that the review undertaken by the ministry and GNPC in its decision to award, also exposed some discrepancies in contracts of certain companies which contained $600m in unsupported profits.

Source :https://www.graphic.com.gh/business/business-news/gnpc-concludes-negotiations-with-gazprom.html