Former Member of Parliament for Dormaa East, Paul Apreku Twum Barimah, has called for the urgent establishment of a National Gas Act to regulate Ghana’s gas industry and address what he describes as growing institutional confusion in the sector.
A Gas Act is a legislative instrument that will provide the necessary legal impetus to run the gas industry
According to him, despite Ghana producing natural gas since 2011, successive governments have failed to enact a comprehensive legal framework to govern the industry, creating uncertainty over regulatory authority and operational responsibilities.
Mr. Twum Barimah observed that the absence of a dedicated gas law has contributed to regulatory overlaps between the Ghana National Petroleum Corporation (GNPC) and the Ghana National Gas Company (GNGC/Ghana Gas).
He explained that GNPC appears to interpret its mandate broadly, believing it has oversight responsibility not only for the upstream petroleum sector but also for the regulation of the country’s gas industry, while viewing Ghana Gas as a subsidiary operating under its supervision.
However, Ghana Gas, he noted, sees itself as an independent institution with a distinct mandate in the processing and management of the country’s gas resources, a situation he says has contributed to institutional tensions and policy uncertainty.
“The lack of a clear legal framework for the gas industry is creating avoidable regulatory mishaps,” he stressed, adding that Ghana’s growing gas sector cannot continue to operate without a clearly defined governance structure.
Mr. Twum Barimah argued that the passage of a National Gas Act would clearly spell out the mandates, responsibilities and limits of the institutions operating in the sector, thereby eliminating ambiguity over who regulates the industry.
He further called for the drafting of a National Gas Bill to be submitted to Parliament for deliberation and eventual passage into law, before receiving presidential assent.
According to him, such legislation would help establish a coherent regulatory regime for Ghana’s gas industry, improve institutional coordination, attract investment and ensure greater accountability in the management of the country’s natural gas resources.
He maintained that with Ghana increasingly relying on natural gas for power generation and industrial development, the country can no longer afford policy and regulatory uncertainty in such a strategic sector.
