Ghana National Gas Managing Director Urges PURC to Review Transmission Tariffs
During a site visit to the Atuabo Gas Processing Plant in the Western Region, Ms Judith Adjobah Blay, Managing Director of the Ghana National Gas Company (GNGC), called on the Public Utilities Regulatory Commission (PURC) to consider an upward adjustment of the transmission tariff. She argued that the current rate does not fully cover the costs needed to maintain and expand the gas‑transport infrastructure that fuels Ghana’s power plants.
Why a Tariff Adjustment Matters
Ms Blay highlighted several reasons why a modest increase in the transmission charge is essential:
- Ensuring continuous, reliable supply of natural gas to thermal power stations, which provide a significant share of Ghana’s electricity.
- Financing routine maintenance and unexpected repairs on the 1,100‑kilometre high‑pressure pipeline network that links Atuabo to demand centres.
- Funding capital projects aimed at boosting transmission capacity, such as compressor station upgrades and pipeline looping.
- Avoiding the higher economic and social costs that would arise from frequent outages or curtailed power generation.
She warned that inaction could lead to far more serious consequences than a small tariff rise, including reduced plant availability and potential reliance on more expensive liquid fuels.
Current Transmission Infrastructure and Challenges
GNGC’s transmission system moves processed natural gas from the Atuabo Gas Processing Plant—capable of handling about 150 million standard cubic feet per day (MMscfd)—to power plants in the southern and middle belts of Ghana. According to the company’s Annual Report 2022, the network comprises:
- Approximately 1,100 km of steel pipeline operating at pressures up to 70 bar.
- Four compressor stations that maintain flow rates across varying topography.
- Metering and regulation stations that deliver gas to end‑users at prescribed specifications.
Operating expenses have risen due to inflationary pressures on steel, labor, and electricity needed for compression. Meanwhile, the transmission tariff set by PURC has remained unchanged since the last major review, creating a widening gap between revenue and the cost of maintaining service quality.
PURC’s Role and Recent Tariff Reviews
The Public Utilities Regulatory Commission is mandated to set fair and cost‑reflective rates for electricity, water, and natural gas services. In its 2022 tariff determination, PURC retained the transmission charge at a level that stakeholders, including GNGC, argue does not adequately reflect current operational expenditures. The commission typically balances consumer affordability with the financial sustainability of utility operators, a process that involves public hearings, technical studies, and stakeholder submissions.
Ms Blay’s appeal aligns with a broader trend observed in West Africa, where gas transmission operators have sought tariff adjustments to fund infrastructure upgrades and ensure long‑term energy security. By engaging PURC now, GNGC hopes to secure a tariff framework that supports both routine upkeep and strategic investments without compromising the reliability of Ghana’s power supply.
Looking Ahead
The Managing Director urged PURC to schedule a timely review that incorporates the latest cost data, projected demand growth, and the national objective of increasing the share of natural gas in the electricity mix. She expressed confidence that a collaborative approach—grounded in transparent data and stakeholder dialogue—would yield a tariff outcome that protects consumers while enabling GNGC to fulfill its mandate of delivering safe, efficient, and affordable gas to the nation’s power plants.
