Although
Ghana produces natural gas and has several gas reserves, the country still
depends on supplies from neighbouring countries for power generation due to
challenges like fuel supply inefficiencies and increasing cost of gas production. Gas supply is thus a
limiting factor for power generation. This study explores strategies to improve
gas supplies for sustainable power generation in Ghana. The study examined the
underlying factors inhibiting gas supplies in Ghana, investigated the risks in
the gas supply industry, and explored strategies for improving gas supplies in
Ghana. The study adopted an inductive approach that utilises both qualitative
and quantitative research methods. With the use of questionnaires, data were
collected from 151 respondents who were selected by purposive and snowball
sampling procedures. The collected data were descriptively and inferentially
analysed with analytical tools in the SPSS. The study’s findings conclude that factors that inhibit gas
supply in Ghana include the lack of growth and supply investment in the gas
supply industry, power sector debt on the gas market, and the lack of an
extensive distribution infrastructure/network. Also, the gas industry in Ghana
lacks the requisite investment drive which culminates into inefficiency and
ultimately undermines efforts to achieve sustainable power generation. Politics
influence in issues relating to gas supplies in Ghana inhibits long-term supply
relationships and permanent infrastructure in gas supply, both locally and on
the world market.
References
[1]
World Bank (2013) World Bank Development Indicators. http://documents.worldbank.org/curated/en/449421468331173478/World-development-indicators-2013
[2]
Panford, K. (2017) Africa’s Natural Resources and Underdevelopment: How Ghana’s Petroleum Can Create Sustainable Economic Prosperity. Springer, Berlin.
[3]
Energy Commission (2011) Liquefied Petroleum Consumption Survey, 2003-2007. Energy Survey in Households, Industries, Commercial and Services. http://www.energycom.gov.gh/planning/data-center/energy-outlook-for-ghana?download=79:energy-outlook-for-ghana-2011
[4]
Asumadu-Sarkodie, S. and Owusu, P.A. (2016) A Review of Ghana’s Energy Sector National Energy Statistics and Policy Framework. Cogent Engineering, 3, 115-204. https://doi.org/10.1080/23311916.2016.1155274
[5]
Asante, F.A., Tagoe, C.A. and Boakye, A.A. (2010) Effects of Rising Food and Oil Prices on Rural Households in Ghana: A Case Study of Selected Communities in the Dangme West District Using the CBMS Approach. DLSU Business & Economics Review, 20, 47-63. https://doi.org/10.3860/ber.v20i1.1668
[6]
Essah, E.A. (2011) Energy Generation and Consumption in Ghana. West Africa Built Environment Research (WABER) Conference, Accra, 19-21 July 2011, 391-401.
[7]
Gaudard, L., Gilli, M. and Romerio, F. (2013) Climate Change Impacts on Hydropower Management. Water Resources Management, 27, 5143-5156. https://doi.org/10.1007/s11269-013-0458-1
[8]
Eshun, M.E. and Amoako-Tuffour, J. (2016) A Review of the Trends in Ghana’s Power Sector. Energy, Sustainability and Society, 6, 9. https://doi.org/10.1186/s13705-016-0075-y
[9]
Aboagye, B., Gyamfi, S., Antwi, E.O. and Djordjevic, S. (2020) Status of Renewable Energy Resources for Electricity Supply in Ghana. Scientific African, 11, e00660. https://doi.org/10.1016/j.sciaf.2020.e00660
[10]
Kemausuor, F. and Ackom, E. (2017) Toward Universal Electrification in Ghana. Wiley Interdisciplinary Reviews: Energy and Environment, 6, 225. https://doi.org/10.1002/wene.225
[11]
Mensah, J.T. and Adu, G. (2015) An Empirical Analysis of Household Energy Choice in Ghana. Renewable and Sustainable Energy Reviews, 51, 1402-1411. https://doi.org/10.1016/j.rser.2015.07.050
[12]
U.S. Energy Information Agency (2018) Eia.gov, Ghana-Overview. https://www.eia.gov/beta/international/analysis.php?iso=GHA
[13]
Mensah, J.T., Marbuah, G. and Amoah, A. (2016) Energy Demand in Ghana: A Disaggregated Analysis. Renewable and Sustainable Energy Reviews, 53, 924-935. https://doi.org/10.1016/j.rser.2015.09.035
[14]
Kemausuor, F., Obeng, G.Y., Brew-Hammond, A. and Duker, A. (2011) A Review of Trends, Policies and Plans for Increasing Energy Access in Ghana. Renewable and Sustainable Energy Reviews, 15, 5143-5154. https://doi.org/10.1016/j.rser.2011.07.041
[15]
IEA, C. (2012) Emissions from Fuel Combustion. International Energy Agency, 13, 2895-2902.
[16]
Ackah, I., Opoku, F. and Anang, S. (2019) Switching on an Environmentally Friendly and Affordable Light in Africa: Evaluation of the Role of Natural Gas. Insight on Africa, 11, 60-77. https://doi.org/10.1177/0975087818814932
[17]
Fritsch, J. and Poudineh, R. (2016) Gas-to-Power Market and Investment Incentive for Enhancing Generation Capacity: An Analysis of Ghana’s Electricity Sector. Energy Policy, 92, 92-101. https://doi.org/10.1016/j.enpol.2016.01.034
[18]
Kumi, E.N. (2017) The Electricity Situation in Ghana: Challenges and Opportunities. Center for Global Development, Washington DC.
[19]
Baah, K.A. (2016) Maximization of Natural Gas Liquids Recovery of the Ghana National Gas Plant-Atuabo. Doctoral Dissertation.
[20]
Eni Ghana (2018) Eni.com, Eni Starts Gas Production from OCTP Project, Deep Offshore. https://www.eni.com/en_IT/media/2018/07/eni-starts-gas-production-from-octp-project-deep-offshore-ghana
[21]
Mohr, S.H. and Evans, G.M. (2011) Long Term Forecasting of Natural Gas Production. Energy Policy, 39, 5550-5560. https://doi.org/10.1016/j.enpol.2011.04.066
[22]
Ma, X. (2017) Natural Gas and Energy Revolution: A Case Study of Sichuan-Chongqing Gas Province. Natural Gas Industry B, 4, 91-99. https://doi.org/10.1016/j.ngib.2017.07.014
Aras, H. and Aras, N. (2004) Forecasting Residential Natural Gas Demand. Energy Sources, 26, 463-472. https://doi.org/10.1080/00908310490429740
[25]
Shahbaz, M., Lean, H.H. and Farooq, A. (2013) Natural Gas Consumption and Economic Growth in Pakistan. Renewable and Sustainable Energy Reviews, 18, 87-94. https://doi.org/10.1016/j.rser.2012.09.029
[26]
Ackah, I. (2014) Determinants of Natural Gas Demand in Ghana. OPEC Energy Review, 38, 272-295. https://doi.org/10.1111/opec.12026
[27]
Hayashi, M. and Hughes, L. (2013) The Fukushima Nuclear Accident and Its Effect on Global Energy Security. Energy Policy, 59, 102-111. https://doi.org/10.1016/j.enpol.2012.11.046
[28]
Shaffer, B. (2013) Natural Gas Supply Stability and Foreign Policy. Energy Policy, 56, 114-125. https://doi.org/10.1016/j.enpol.2012.11.035
[29]
Jaramillo, P. (2007) A Life Cycle Comparison of Coal and Natural Gas for Electricity Generation and the Production of Transportation Fuels. Carnegie Mellon University, Pittsburgh.
[30]
Klint, M.B. and Sjöberg, U. (2003) Towards a Comprehensive SCP-Model for Analysing Strategic Networks/Alliances. International Journal of Physical Distribution & Logistics Management, 33, 408-426. https://doi.org/10.1108/09600030310481988
[31]
Panagiotou, G. (2006) The Impact of Managerial Cognitions on the Structure-Conduct-Performance (SCP) Paradigm: A Strategic Group Perspective. Management Decision, 44, 423-441. https://doi.org/10.1108/00251740610656296
[32]
Von Hirschhausen, C. (2008) Infrastructure, Regulation, Investment and Security of Supply: A Case Study of the Restructured US Natural Gas Market. Utilities Policy, 16, 1-10. https://doi.org/10.1016/j.jup.2007.08.001
[33]
Baumol, W.J. and Klevorick, A.K. (1970) Input Choices and Rate-of-Return Regulation: An Overview of the Discussion. The Bell Journal of Economics and Management Science, 1, 162-190. https://doi.org/10.2307/3003179
[34]
Averch, H. and Johnson, L.L. (1962) Behavior of the Firm under Regulatory Constraint. The American Economic Review, 52, 1052-1069. https://doi.org/10.7249/P2488-1
[35]
Kapika, J. and Eberhard, A.A. (2013) Power-Sector Reform and Regulation in Africa: Lessons from Kenya, Tanzania, Uganda, Zambia, Namibia and Ghana. HSRC Press, Cape Town.
[36]
Dixit, A.K., Dixit, R.K. and Pindyck, R.S. (1994) Investment under Uncertainty. Princeton University Press, Princeton. https://doi.org/10.1515/9781400830176
[37]
Hausman, J.A. and MacKie-Mason, J.K. (1988) Price Discrimination and Patent Policy. The RAND Journal of Economics, 19, 253-265. https://doi.org/10.2307/2555703
[38]
Höffler, F. and Kranz, S. (2011) Legal Unbundling Can Be a Golden Mean between Vertical Integration and Ownership Separation. International Journal of Industrial Organization, 29, 576-588. https://doi.org/10.1016/j.ijindorg.2011.01.001
[39]
Pollitt, M. (2008) The Arguments for and against Ownership Unbundling of Energy Transmission Networks. Energy Policy, 36, 704-713. https://doi.org/10.1016/j.enpol.2007.10.011
[40]
Mulder, M. and Shestalova, V. (2006) Costs and Benefits of Vertical Separation of the Energy Distribution Industry: The Dutch Case. Competition and Regulation in Network Industries, 1, 197-230. https://doi.org/10.1177/178359170600100205
[41]
Suleman, S. (2018) Managing the Structure, Regulation and Infrastructure Investment Decisions in the Natural Gas Industry of Ghana.
[42]
Ouedraogo, N.S. (2017) Africa Energy Future: Alternative Scenarios and Their Implications for Sustainable Development Strategies. Energy Policy, 106, 457-471. https://doi.org/10.1016/j.enpol.2017.03.021
[43]
Ernst & Young (2006) Final Report Research Project: The Case for Liberalisation. https://webarchive.nationalarchives.gov.uk/20070507022928/ http://www.dti.gov.uk/files/file28401.pdf
[44]
Creswell, J.W. (2007) Five Qualitative Approaches to Inquiry. In: Creswell, J.W., Ed., Qualitative Inquiry and Research Design: Choosing among Five Approaches, 2nd Edition, Sage Publications, Inc., London, 53-80.
[45]
Park, S.Y. (2009) An Analysis of the Technology Acceptance Model in Understanding University Students’ Behavioral Intention to Use e-Learning. Educational Technology & Society, 12, 150-162.
[46]
Bartlett, J.E., Higgins, C.C. and Kotrlik, J.W. (2001) Selecting an Appropriate Sample Size for Conducting Survey Research. Book of Readings. Delta Pi Epsilon, Nashville, 15-17 November 2001, 143-148.
Yin, R.K. (2003) Case Study Research: Design and Methods. Third Edition, Applied Social Research Methods Series, Vol. 5. Sage, Thousand Oaks.
[49]
Kothari, C.R. (2004) Research Methodology: Methods and Techniques. New Age International, New Delhi.
[50]
Wilkinson, S. (2011) Analysing Focus Group Data. Qualitative Research, 3, 168-184.
[51]
Allen, I.E. and Seaman, C.A. (2007) Likert Scales and Data Analyses. Quality Progress, 40, 64-65.
[52]
Barde, M.P. and Barde, P.J. (2012) What to Use to Express the Variability of Data: Standard Deviation or Standard Error of Mean? Perspectives in Clinical Research, 3, 113-116. https://doi.org/10.4103/2229-3485.100662
Ahadzie, D.K. (2007) A Model for Predicting the Performance of Project Managers in Mass House Building Projects in Ghana. Doctoral Dissertation, University of Wolverhampton, Wolverhampton.
[55]
Ibanga, I. (2005) The Economics of Privatizing and Deregulating the Nigerian Downstream Oil Sector. Valore International, 1.
[56]
Noble, H. and Smith, J. (2015) Issues of Validity and Reliability in Qualitative Research. Evidence-Based Nursing, 18, 34-35. https://doi.org/10.1136/eb-2015-102054
[57]
Gliem, J.A. and Gliem, R.R. (2003) Calculating, Interpreting, and Reporting Cronbach’s Alpha Reliability Coefficient for Likert-Type Scales. In: Midwest Research-to-Practice Conference in Adult, Continuing, and Community Education, The Ohio State University, Columbus, 82-87.
[58]
Oyedepo, S.O. (2014) Towards Achieving Energy for Sustainable Development in Nigeria. Renewable and Sustainable Energy Reviews, 34, 255-272. https://doi.org/10.1016/j.rser.2014.03.019
[59]
Diawuo, F.A. and Kaminski, J. (2017) An Analysis of the Ghanaian Power Generation Sector Using an Optimization Model. Journal of Power Technologies, 97, 15-27. https://doi.org/10.1016/j.enpol.2011.12.057
[60]
Skea, J., Chaudry, M. and Wang, X. (2012) The Role of Gas Infrastructure in Promoting UK Energy Security. Energy Policy, 43, 202-213.