Quantum Power Sets Records Right Over LNG Gas Deal

Quantum Power as refuted claims it required the Ghana National Petroleum Corporation (GNPC) to invest in its project to provide the infrastructure required for the importation of Liquefied Natural Gas (LNG).

Quantum, in a statement, said it did not need help from the GNPC as the project infrastructure cost, including all pipelines, “were to be fully borne by Quantum and Höegh LNG. It was GNPC who insisted on having the right to invest in the project.”

“This has been distorted in the media to suggest that Quantum required GNPC to invest in the project. This is false.”

Quantum said false statements have been made regarding the agreement Quantum Power with GNPC on October 21, 2016, to provide the infrastructure required for the importation of LNG from whichever supplier or source Ghana chose.

It attributed these statements to publications in The Statesman and the Daily Graphic newspapers, which pertained to the tarrif structure, among others.

Quantum maintains that its tariff for its infrastructure and regasification service of 250 MMscf/d is $1.30 per MMBtu for a 10-year term, as opposed to indications from the Daily Graphic.

“Any other price, term or capacity published, alleged or reported is false,” it noted in the statement.

“Accusations of Quantum providing ‘an unsolicited and irregular proposal…after the close of submission”,“…only submitting an offer for 20 years…”, or “…based on GNPC's committing to a 100%increase in the minimum volumes….to 500 MMscf/d’ are blatantly false (as well as inconsistent).”

Quantum also said it never offered to provide the LNG but only offered Ghana the mechanism to bring in the LNG, leaving Ghana to choose its LNG supplier, “therefore, any attribution of an LNG price to Quantum's infrastructure, which is not a market-based price, is by definition, arbitrary.”

Quantum's credit support from GNPC (and not from the Government) is less than 40% of that required by Gazprom and was always intended to be covered by the LC for the LNG.

Quantum also said it requested no Government guarantee “and none was granted.”

“It was GNPC who tried to transfer the credit support responsibility to the Government. Quantum working in collaboration with AfDB sought to provide an AfDB partial risk guarantee to cut the Government's credit cost burden to a quarter of the original amount,” the rebutting statement added.

Find the full statement here
–
By: Delali Adogla-Bessa/citifmonline.com/Ghana