Tag: Petroleum sector

  • Ghana targets oil field emissions as EPA unveils strict methane regulations

    Ghana targets oil field emissions as EPA unveils strict methane regulations

    New Operational Standards Aim to Cut Greenhouse Gas Waste and Reinforce National Climate Commitments

    By Adnan Adams Mohammed

     

    Regulatory oversight in Ghana’s petroleum sector took a firm turn forward today as the Environmental Protection Agency launched a comprehensive policy package designed to systematically curb methane emissions from oil and gas fields.

    The new measures establish aggressive monitoring guidelines and operational restrictions aimed at minimizing environmental impacts while maximizing gas recovery across all domestic offshore and onshore projects.

    The newly introduced directives mandate energy companies operating in Ghana’s offshore and onshore blocks to implement advanced Leak Detection and Repair (LDAR) technologies, eliminate routine gas flaring, and submit continuous emission monitoring reports to the agency.

    Speaking at the official unveiling of the regulatory guidelines in Accra, the Executive Director of the EPA emphasized the urgent need to address short-lived climate pollutants that accelerate global warming.

    “Methane is a potent greenhouse gas with a warming impact significantly higher than carbon dioxide in the short term,” stated the EPA Executive Director. “By tightening these controls, Ghana is sending a clear signal to the energy market that environmental responsibility and resource extraction must go hand in hand. Compliance will be strictly enforced across all operational fields.”

     

    Under the updated framework, oil and gas operators will be subject to mandatory third-party audits and potential financial penalties for failure to meet designated reduction targets within established timelines.

    Industry stakeholders and civil society representatives have welcomed the initiative, highlighting its potential to position Ghana as a regional leader in sustainable energy practices while reducing wasteful natural gas losses.

    Commenting on the compliance roadmap, a senior representative from the Petroleum Commission noted that the sector is prepared to collaborate with regulators to ensure a smooth transition toward low-emission operational standards.

    “Our goal is to ensure that Ghana’s hydrocarbon resources are developed responsibly,” the official noted. “Adopting modern monitoring technologies not only mitigates environmental risks but also preserves valuable gas resources that can be processed for national power generation.”

     

    Climate policy analysts have also praised the timing of the regulations, pointing out that reducing methane emissions offers one of the fastest, most cost-effective ways to slow down current rates of global warming.

    “This regulatory tightening reflects Ghana’s proactive stance on international climate obligations,” remarked an environmental policy expert during the event. “Enforcing these standards will safeguard local ecosystems and demonstrate to international investors that Ghana remains dedicated to high-standard, sustainable energy development.”

     

    The EPA confirmed that implementation of the new guidelines will take effect immediately, with a multi-phase transition period granted to current operators to upgrade equipment and integrate state-of-the-art detection systems.

     

  • Stakeholders agree to scrap failed Gold-For -Oil initiative

     

    “Gold-for-Oil policy scrapped; stakeholders push for a better solution.”

    Adnan Adams Mohammed

    Stakeholders in the downstream petroleum sector have resolved to abandon the controversial Gold-For-Oil programme on the basis that it has not fulfilled its objectives. The Energy Minister, has therefore confirmed that the current administration would discontinue the Gold-for-Oil programme and replace it with a better system.

    Ghana’s gold-for-oil policy, marketed as a daring move to stabilize the cedi, now finds itself ensnared in execution flaws, questionable efficacy, and mounting political discord. As its true impact remains cloudy, the policy may soon join the long list of bold yet faltering attempts to tame exchange rate volatility of Ghana’s turbulent currency.

    “There’s a high level of opacity, and the clarity is not there,” John Jinapor said in an interview last week. He referenced the Auditor-General’s report, which had flagged issues with theprogramme, reinforcing claims that it lacked accountability and efficiency. “If it were that clear and transparent, we wouldn’t need the reforms we are pursuing,” he added.

    Instructively the International Monetary Fund had earlier expressed reservations over the initiative, making the Bank of Ghana to retreat from its original role in its implementation.

    Consequent to such widespread reservations, the Chief Executive of the Association of Oil Marketing Companies (AOMCs) and LPG Marketing Companies, Dr. RiversonOppong, expressed disappointment with the much- touted Gold-for-Oil (G4O) programme. Dr. Oppong argued that the initiative did not meet its intended objectives and disrupted the industry’s supply chain.

     

    “In the long run, we have seen how this was introduced, and the fact is, it absolutely didn’t curb energy pricing in any way,” Dr. Oppong stated.

    He noted that towards the end of 2024, Ghana experienced fuel shortages because Bulk Oil Distribution Companies (BDCs) struggled to plan their imports alongside the Gold-for-Oil supply. “As a result, BDCs were reluctant to import fuel, which led to supply challenges,” he explained.

    Dr. Oppong further questioned whether the programme had fulfilled its primary goal of reducing fuel prices, stating emphatically, “The answer is a big no.”

    He emphasized that industry players were waiting for the government to outline a new framework to replace the existing policy.

    “With dialogue, I believe we can come up with a better solution,” he added.

    Meanwhile, the energy minister has pleaded for time to phase out the programme. “You need time to put a workable system in place. In the interim, we are making adjustments to reduce losses and enhance transparency, but ultimately, we will replace it,” he stated.

    The government’s decision to phase out Gold-for-Oil is expected to pave the way for a new fuel pricing policy, with industry players advocating for a more predictable and transparent framework

     

    Ho water crisis to end.. as GWCL promises new

    pumps

     

    The Managing Director of the Ghana Water Company Limited (GWCL), Mutawakilu Adams, has assured residents of Ho and its surrounding communities that steps are being taken to resolve their ongoing water crisis.

    According to Adams, the company has ordered two new machines to replace the old and faulty ones at the Kpeveheadworks, which has suffered multiple breakdowns in recent weeks, disrupting water supply across the municipality.

    The frequent failure of the Kpeve headworks pumps in January has led to a severe water shortage, forcing residents to travel long distances in search of water. Hospitals, schools, and other institutions have also been severely affected by the crisis.

    Volta Regional Minister James Gunu, along with GWCL management and traditional leaders from Ho and Kpeve, toured the Kpeve headworks to assess the situation, last week.

    Speaking to the media after the inspection, MutawakiluAdams reaffirmed the company’s commitment to resolving the issue. “We have placed orders for two brand-new machines to replace the faulty ones, ensuring a more effective and reliable water supply,” he assured.

    Residents remain hopeful that the arrival of the new equipment will bring lasting relief and end the recurring water shortages in the region