GNPC told to assess risks to energy transition plan
The Natural Resource Governance Institute (NRGI) is urging the Ghana National Petroleum Corporation (GNPC) to proactively assess the risks associated with the ongoing global energy transition.
The Institute emphasizes the importance of scenario planning and risk assessment, advocating for a cautious selection of oil and gas projects that are both low-cost and high-viability. The call comes as the energy sector undergoes transformative shifts, with companies worldwide increasingly diversifying into renewable energy.
Dennis Gyeyir, the Africa Senior Programme Officer at NRGI, underscores the significance of GNPC adopting a proactive stance. He points out that while it’s not necessary for GNPC to halt its investments in oil and gas, the focus should be on strategically selecting projects that align with global energy transition goals. By opting for low-cost, high-viability endeavors, GNPC can mitigate potential risks and adapt to the evolving energy landscape.
Mr. Gyeyir further emphasizes the need for GNPC to acknowledge the direction of the global energy transition, particularly the growing prominence of electric vehicles (EVs) and the expanding renewable energy sector. The risk assessment and scenario planning, he notes, are essential steps to ensure GNPC’s sustainability and competitiveness in the long run.
The NRGI’s survey, designed to inform oil companies about transition strategies and risks, revealed that many national oil companies are adapting to the energy transition. Notably, companies like Ecopetrol of Colombia, PEMEX of Mexico, and YPF of Argentina, which have embraced private investment and partial listings, are at the forefront of transition readiness. This approach has resulted in greater transparency, stakeholder engagement, and a proactive response to changing industry dynamics.
In light of this, proposals have emerged for GNPC to explore partial privatization as a means to enhance governance, transparency, and accountability. Suggestions range from partial listings to injecting private ownership, all aimed at fostering a more sustainable and adaptive corporate structure.
As the energy landscape continues to evolve, the NRGI’s insights urge GNPC to seize the opportunity to be a proactive participant in the energy transition journey, ensuring its relevance and sustainability for the future.
