Ghana Gas proposes $2.15/MMBtu tariff increment for gas processing and supply
Ghana National Gas Company (GNGC), has submitted to the Public Utilities Regulatory Commission (PURC), a tariff increment proposal of $2.15/MMBtu for gathering, processing and transmission of gas within the country.
The $2.15/MMBtu tariff proposal is for the year 2022, for the subsequent four years ie 2023, 2024, 2025 and 2026, the proposed tariff adjustments are $2.03/MMBtu, $2.59/MMBtu, $2.54/MMBtu and $2.46/MMBtu respectively.
According to GNGC, the proposed $2.15/MMBtu tariff for 2022 is based on a total service cost of $132.47m.
Read: Gov’t secures GHS 2.1bn from five issued debt securities last week
Per the tariff adjustment document submitted to PURC by GNGC, the proposed tariffs are justified by the following factors:
- Recovery of fixed operational expenses required to ensure uninterrupted operation of GNGC’s facilities and the delivery of gas.
- Recovery of the cost of investment.
- Return on assets which facilitates repayment of the cost of capital and equity return to shareholders, thereby protecting the investor interest
Meanwhile, key policy issues considered in formulating the proposed tariffs include:
- Recovery of the cost of investment to include the Gathering pipeline
- CDB assets and loan interest to be excluded from the Regulated Assets Base
- NGLs to be retained as revenue by GNGC to offset part of the Natural Gas Processing Service Charge
- Payment of the 14km Deep Water Offshore Pipeline to GNPC initiated and therefore must be included in GNGC’s Regulatory Asset Base.
Peruse details of tariff document below:
Ghana Gas Company by Fuaad Dodoo on Scribd
