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Jun 27, 2011

Energy Minister describes supply of natural gas as erratic

The Minister for Energy, Dr. Oteng Adjei, has described the inconsistent natural gas supply from Nigeria since the inception of the West Africa Gas Pipe Line Project in August 2010 as erratic.

According to him, supplies since January 2011 ranged from 120,000 million British thermal units per day (MMBtu/day) to nothing with an average volume of about 80,000 (MMBtu /day).

Dr. Adjei who said this in Parliament in a response to a question, indicated that the current price of natural gas was about $6.61 per million British thermal units (S/MMBtu) equivalent to $40 per barrel compared to the current crude price of more than $100 per barrel.

He said government noted that the price was indexed to six month average of the crude oil price and therefore changed over time, adding that the availability of gas has significantly reduced the cost of hydro- power generation, which he explained have been passed to the consumer by the Public Utility Regulatory Commission in the tariff adjustment of March 2011.

In a response to another question on monies received as training allowances from oil Exploration and Production companies, the Minister explained that the funds have been utilized for staff training –advanced educational programs and short courses, educational support for public institutions, staff attachment and development programs, conferences, seminars and workshops, attachment training for university students and the acquisition of office equipment.

He also responded to other questions regarding rural electrification in the Volta Region.

Source: ISD (Gilbert Ankrah)