Genser and the ministry avoid criticism over local content

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A local association accused Genser Energy of failing to meet local content commitments, prompting denials from the energy ministry and the company.

Ghana Gas Senior Staff Association (GGSSA) has released a statement calling on the Ghanaian President to cancel Gensers’ plans to build a processing plant.

The Genser deal will gradually lead to the collapse of state-owned enterprises, GGSSA said, drawing a comparison with the challenges at the Tema Oil Refinery (TOR). Ghana Gas workers feel totally betrayed by the Minister of Energy, he said. The support for the Genser plan was a stab in the back considering all the efforts made by Ghana Gas to support the sector.

Gensers’ plans for a second gas processing plant do not match government plans for increased local participation in the sector, the group said. The GGSSA statement was signed by its president, Richmond Alamu.

The Department of Energy released a statement in response saying the House Mines and Energy Committee was investigating. The ministry denied having signed an agreement with Genser. Instead, he said, the company had entered into agreements with Ghana Gas and Ghana National Petroleum Corp. (GNPC).

The GGSSA chief misled them for reasons he knows best, the ministry said.

Local packages

Genser denied allegations that he failed to meet local content requirements. Local staff hires account for more than 80%, Genser representative Anna Klapper said. She went on to note the company’s work with young graduates and the low turnover rate.

The company is still largely Ghana-owned, she said. The law requires that these companies be majority-owned by Ghanaians.

The dispute is not expected to impact the company’s plans, she said. We have a strong commitment and were talking to people in government. Were keen to clarify misunderstandings, Klapper said.

In July 2022, Genser reported reaching financial close on a $425 million local build financing package. It plans to build a 100 km gas pipeline to the city of Kumasi and a 200 million cubic feet per day processing plant in Prestea. It will also construct an NGL storage terminal at Takoradi port.

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