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PURC Meets Ghana National Gas Company to Strengthen Energy Sector Collaboration

The Management of the Public Utilities Regulatory Commission (PURC), led by the Executive Secretary, Dr. Shafic Suleman, on Wednesday, August 6, 2025, paid a courtesy call on the Acting Chief Executive Officer (CEO), Madam Judith Adjobah Blay and Management of the Ghana National Gas Company (GNGC) at the company’s headquarters. The visit provided an opportunity for both institutions to share perspectives on the current state of the gas sub-sector and to discuss policy matters affecting national gas transmission and gas market regulations.

Madam Judith, in her opening remarks, warmly welcomed the PURC delegation and expressed her appreciation for the visit. The GNGC Chief Executive Officer viewed the PURC’s visit as timely and mutually beneficial.

GNGC emphasized its role in Ghana’s energy sector, beginning with its substantial contribution to fuel cost savings. The CEO noted that GNGC is currently responsible for generating annual fuel cost savings of approximately USD 1.1 million for the country. These savings are realized through the efficient delivery of processed gas, thereby avoiding more expensive alternatives, the cost of which would otherwise be transferred to consumers.

The CEO further indicated that GNGC also contributes significantly to the domestic energy supply chain through the production and marketing of by-products. The company supplies approximately 34,000 metric tonnes of condensate to the Ghanaian market and also produces over 95,000 metric tonnes of domestic Liquefied Petroleum Gas (LPG). She also noted that GNGC supplies approximately 83% of the gas used in Ghana’s power generation, emphasising its foundational role in national energy security. The CEO noted the current and proposed infrastructure investments being undertaken by GNGC, some of which were outlined in the company’s proposal at the PURC investment hearings.

The CEO of GNGC expressed growing concerns about the proliferation of third parties constructing the company’s pipeline infrastructure or exerting influence over segments of pipelines which should be under the control of the National Gas Transmission Utility (NGTU). “Such activities directly infringe upon our mandate as the designated operator of national gas transmission infrastructure and therefore require immediate policy rectification” she stated.

She further stated that “the lack of clarity regarding which entity is legally authorised to enter into gas sales agreements and oversee gas commodity sales in Ghana, and the absence of a consolidated policy framework or authoritative directive on this matter, creates confusion and overlapping roles, with potential implications for sector coherence.”

The Executive Secretary of PURC, Dr. Shafic Suleman, on his part, acknowledged the importance of the issues raised, noting that the Commission is keenly aware of the institutional gaps surrounding gas transmission and commercialization.

Dr. Suleman proposed the formation of a strategic unit comprising representatives from the Ministry of Energy and Green Technology, GNGC, PURC, and the Energy Commission, which would be tasked with developing a comprehensive policy document which clearly outlines GNGC’s legal rights and operational boundaries, particularly as they relate to the sole control over the national gas transmission infrastructure. Recommendations of the committee will also help to address the matter of third-party encroachment on the NGTU facilities and the broader questions surrounding gas sales authority. The policy document, once finalized, could then be submitted to the Minister for Energy for further escalation to the Cabinet level, to secure formal approval and enforcement.

Dr. Suleman further advised GNGC to adopt a more proactive approach in anticipating national gas infrastructure needs. Rather than reacting to third-party developments, GNGC should take the lead in identifying underserved areas across the country and initiating infrastructure investments to meet the potential gas demand. He explained that, this would not only reaffirm GNGC’s operational leadership but also prevent future encroachments.

Dr. Suleman informed GNGC of the intention of PURC to strengthen its internal technical capacity by assigning liaison officers to be briefly attached to GNGC to work directly with the company. These officers would support the development of Key Performance Indicators (KPIs), service benchmarks, and other regulatory instruments to enhance supervisory and performance measurements within the gas sector.

Dr Suleman concluded by reaffirming that while individual issues such as mandate infringement, gas sales agreements, and commodity sales are all important, it would be most effective for the proposed joint strategic unit to examine them holistically. By consolidating the perspectives on a shared regulatory pathway, the gas sector would avoid duplication and overlays of roles.

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