Ghana not in a rush to transition from crude oil to wind, solar energy – Energy Ministry

We cannot abandon oil and gas now, Energy Minister

Ghana can develop with oil and gas, Dr. Amin Adam

GNPC to acquire two additional oil blocks valued in excess of $2billion

Deputy Minister of Energy, Dr Mohammed Amin Adam has stated that there is a lot of untapped resources in the oil and gas sector therefore Ghana will not be rushed into transitioning from

Read full article.fossil fuel to renewable energy.

The deputy minister stated that the country will transition at its own pace because it needs to fully maximize the benefits from crude oil production to help develop the country.

Speaking in an interview with TV3, Dr. Amin Adams said, “Ghana will transition at our own pace, we want to produce oil and gas, we want to continue to do that because we need the resources, we need the revenue to develop our country, we need the value addition and therefore, we cannot abandon it now.

“Also, natural gas has just been recognized by the European Union as a transition fuel because it is the cleaners in the fossil chain and so, when Europe has agreed that natural gas is a transition fuel, then there is no basis for us to even contemplate abandoning natural gas. We can use natural gas for power production, we can use natural gas for fuel or transportation, we can convert natural gas into petrochemicals.

“There are so many ways we can develop our country using these resources.”

There have been several calls for Ghana to transition from fossil fuel to wind and solar energy.

However, the country says there is the need to maximize its full potential in the crude oil sector since it has multiple oil blocks.

Finance Minister Ken Ofori-Atta stated, “Ghana has multiple oil blocks and as we speak now, our own GNPC is looking to acquire stakes in just two blocks which are valued by an external valuer in excess of 2billion. Potentially, we could bring in billions of dollars if we are given the chance to develop these multiple blocks. But now, all of a sudden, the West is saying we should move to clean energy.

“Taking funding on the table for oil and gas investments is not the solution. The delivery of low-cost energy to fuel our development will require a whole new approach towards investments in developing oil and gas.

“We will need to make investments on a long-term basis delivered through a competitive evaluation that are optimized to reduce cost. Our ultimate aim will be to developing term decarbonization pathways that do not jeopardise our growth prospects and chances of attaining industrial transformation,” Mr Ofori-Atta said while speaking at a National Energy Transition forum organized by the Ministry of Energy in Accra on Tuesday, February 22.

“In certain places where the energy transition is being implemented people have felt alienated by such policy and they perceive these policies as elitists. Such persons have the feeling that the elites are out of touch with their lives and are not aware or do not care about what really matters to them. We, therefore, need everybody to be on board if we are to succeed in this quest. We need to develop plans and implement options that people can relate to or be comfortable using.

“Consequently, it is imperative that we listen to the people on how they want energy transition to occur. I commend the Ministry of Energy and the hardworking Minister for Energy Dr Mathew Opoku Prempeh for using this approach and I am hopeful that at the end of the day the new options that we implement will improve the lives of our people rather than hit the pockets of the poor. We should give equal opportunities to all citizens to enjoy the benefits of the energy transition and ensure social justice in the process,” Dr. Bawumia said.

He noted that “There is less funding available for oil exploration and exploitation and you are seeing this in an increase in oil prices globally today, as this transition is being talked about and is taking place. But we, in many of the developing countries are facing these very high costs of petroleum prices that is resulting in many economic impacts such as inflation in many countries as prices of goods increase in response to the increase in petroleum prices. So we have to be very aware of where this is going.

“There are many who have said that the petroleum prices increase is going to remain as such high levels, we are not going to see any major declines, then how do we as developing countries like Ghana adjust to this new reality if it becomes the new normal of high oil prices and petroleum prices and its impact on the macro variable in our respective economies. It is clear that we need to have a plan hence this is what this stakeholder conference is about,” he added.