Ghana Gas still doesnt have a business plan. Thats the real problem. If someone doesnt get that on track it would become a massive loss making venture. Especially with the falling price of gas. In this particular fight the finance ministry bureaucrats are also moving towards the GNPC side. Being pig - headed is not enough. Ghana Gas must show how they intend to train enough technicians and managers quickly to take over the running of the plant, and how they intend to get to profitability quickly enough to find and manage their own working capital. Jubilee gas alone is below the threshold required to survive as a trading concern (in fact we argue that the gas quantities on the horizon are simply too small for sufficient economies of scale), meanwhile becoming a tolling plant is not feasible because the regional market for gas lacks the infrastructure to emerge. Moving into LNG gasification is the sensible trajectory, but once again there is no compelling strategy from Ghana Gas folks to get there. When you tell them this kind of stuff they say you are sabotaging them. SMH.
Posted on: Fri, 12 Dec 2014 09:18:00 +0000
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