The Chief Executive Officer (CEO) of the Ghana National Gas Company Limited, Dr. Ben K.D. Asante, has indicated that Africa has enough resources to address the persistent Energy Poverty across the continent but that can be done on the heels of optimum balance of export and local utilization of these resources.
According to him, the utilization of these resources is a necessary platform for ensuring sustainable, affordable and accessible energy.
Dr. Ben K.D. Asante was speaking at the 14th Multi-year Expert Meeting of the United Nations Conference on Trade and Development in Geneva, Switzerland.
According to him, prudent management of resources, provision of the requisite fiscal environment to ensure access to capital, and building of Local Intellectual Capacity, will be some of the key drivers for development across the continent.
Dr. Ben Asante enumerated that Africa’s gas share in the global market was 6% in 2021 and this is expected to increase to over 11% by 2050, whilst production is projected to increase from 260 billion cubic meters in 2021, to 585 billion cubic meters in 2050.
In view of all these projections, he said, there exist some challenges in the development and utilization of energy resources in Africa.
These challenges he enumerated are lack of access to capital for projects, lack of adequate requisite infrastructure, unattractive fiscal regime/taxation requirement, unclear institutional and regulatory framework, lack of adequate requisite intellectual capacity, inadequate local/private sector participation in the energy sector and non-cost reflective delivered commodity price.
Dr. Asante also talked about the oil and gas industry in Ghana, making references to the policies guiding the industry in Ghana and averred that, “The policy is to look at using some of the gas for power generation because it is like a direction that the government wants to take in terms of increasing our electricity penetration, especially in the rural areas.”
Dr. Asante said that country-specific policies must be formulated to meet the needs of respective citizens.
The 14th session of the expert meeting is a neutral platform for sharing country experiences in terms of successful strategies and policies implemented at national, regional, and international levels to effectively manage commodity price volatility.
More precisely, the expert meeting assesses the links between commodity price volatility and key macroeconomic indicators in commodity-dependent and Developing Countries (CDDCs), and the links between commodity price volatility and food security in net-food-importing countries.
The meeting in Geneva also discussed market and technology-based instruments that can help manage price risks.
The next session, to which the Ghana Gas boss has been invited, is scheduled to be held in Belgium.