{"id":48822,"date":"2023-08-04T01:00:40","date_gmt":"2023-08-04T00:00:40","guid":{"rendered":"https:\/\/climatechangenews.com\/?p=48822"},"modified":"2023-08-04T11:45:33","modified_gmt":"2023-08-04T10:45:33","slug":"gas-fossil-fuel-africa-ghana-debt-pollution-emissions","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2023\/08\/04\/gas-fossil-fuel-africa-ghana-debt-pollution-emissions\/","title":{"rendered":"Gas lock-in: Debt-laden Ghana gambles on LNG imports"},"content":{"rendered":"

For 15 years, John Gakpo has milled corn to make kenkey \u2013 a cornmeal dumpling and Ghana\u2019s staple food \u2013 in a dimly lit wooden shack in a suburb of Accra, the country\u2019s capital.<\/span><\/b>\u00a0<\/span><\/p>\n

In the past, his earnings have been sufficient to provide for his family. But Gakpo is now struggling to make ends meet.<\/span>\u00a0<\/span><\/p>\n

Once the poster child economy for West Africa, Ghana is suffering from its worst economic crisis in a generation. The debt-laden nation is gripped by soaring inflation and a depreciating currency that has pushed it to default on some of its debt payments.<\/span>\u00a0<\/span><\/p>\n

The energy sector has been a <\/span>major contributor<\/span><\/a> to the country\u2019s financial woes. A lack of planning and unfavourable fossil fuel contracts have previously locked Ghana into paying for gas power far in excess of what it could use, pushing the sector into spiralling debt.<\/span>\u00a0<\/span><\/p>\n

Electricity tariffs have increased <\/span>around 50%<\/span><\/a> for small businesses and households since September alone. Gakpo says his electricity bill has doubled in a year. To cope, he is cutting back buying food for his family.<\/span>\u00a0<\/span><\/p>\n

\"Ghana's

John Gakpo milling corn flour in his workshop in Accra. (Photo: Emmanuel Ameyaw)<\/p><\/div>\n

Yet opposition lawmakers, energy analysts and local NGOs have warned that Ghana\u2019s plans to import liquified natural gas (LNG) under a 17-year agreement with oil giant Shell could make things worse.<\/span>\u00a0<\/span><\/p>\n

The agreement, they say, risks pushing electricity prices even higher, perpetuate a cycle of fossil-fuel related debt and leave little space for renewable energy.<\/span>\u00a0<\/span><\/p>\n

Until 2020, the UK, Germany and the African Development Bank indirectly channelled development funds for a new LNG terminal in the country.\u202f<\/span>\u00a0<\/span><\/p>\n

The project is part of a <\/span>$245 billion<\/span><\/a> expansion of gas infrastructure in Africa, according to <\/span>Global Energy Monitor<\/span><\/a>. But it is among the first to allow commercial LNG imports to a Sub-Saharan African nation.<\/span>\u00a0<\/span><\/p>\n

Threat of EU carbon tax prompts dubious \u201cgreen aluminium\u201d claims in Mozambique<\/a><\/p><\/blockquote>\n

A gamble for economic development \u00a0<\/strong><\/h3>\n

Ghana is <\/span>heavily relying<\/span><\/a> on gas to meet its growing power needs. Gas generates half of its electricity, while <\/span>less than 1% comes from solar<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

The government <\/span>argues<\/span><\/a> importing LNG will shore up Ghana\u2019s energy security as electricity demand is <\/span>projected<\/span><\/a> to double between 2022 and the early 2030s.<\/span>\u00a0<\/span><\/p>\n

Proponents say gas power will need to meet virtually all of this added demand, arguing that domestic gas production is reaching capacity and imports from Nigeria are unreliable.<\/span>\u00a0<\/span><\/p>\n

LNG, they say, will help power the country\u2019s industrial development, displace dirtier and more expensive heavy fuel oil and support the roll out of intermittent renewable energy.<\/span>\u00a0<\/span><\/p>\n

This is tied to the construction of a $400 million LNG terminal in the port of Tema. The project aims to turn Ghana into a hub for providing LNG to the West African market.<\/span>\u00a0<\/span><\/p>\n