Ghana could face significant challenges in accessing European gas export markets if it fails to effectively manage methane emissions and eliminate routine gas flaring, according to a warning from Dr Kwame Sarkodie, a petroleum engineering expert. He cautioned that evolving EU regulations, particularly concerning methane emissions, are creating new requirements for oil and gas-producing countries, potentially jeopardizing Ghana’s competitiveness. Dr Sarkodie, speaking at a Technical Consultative Workshop organized by the Public Interest and Accountability Committee (PIAC), emphasized that the elimination of routine gas flaring is a critical priority, both environmentally and economically. ‘If Ghana does not enforce zero routine flaring and eliminate emissions, we risk losing access to the European export markets and facing higher capital costs from international investors,’ he stated. He cited recent disclosures by PIAC that approximately 28.5 million units of gas, representing 10.4 per cent of raw gas produced, had been flared in a single year. This represents a substantial economic loss, estimated at $170 million, suggesting the resource could instead be utilized more effectively within the energy sector. Dr Sarkodie further noted that the Petroleum Commission has established a target of eliminating routine gas flaring from Ghana’s oil fields by 2026. ‘Ending routine flaring is not just an environmental imperative; it’s an urgent economic necessity,’ he added. The European Union is implementing its methane regulation, which mandates progressively stricter monitoring, reporting, and verification of methane emissions associated with imported crude oil, natural gas, and coal. The EU rules also introduce methane-intensity requirements for certain import contracts from 2030. Dr Sarkodie explained that under the emerging EU requirements, international buyers will demand credible measurement, reporting, and verification of methane intensity. The European Commission has stated that importers will be required from January 2027 to demonstrate that imported oil and gas come from jurisdictions with methane monitoring, reporting, and verification requirements equivalent to EU standards or specified international standards. From August 2028, importers will be required to report methane intensity, while methane-intensity limits will apply to specified contracts from August 2030. Dr Sarkodie urged Ghana to strengthen its emissions monitoring systems and ensure operators comply with measures to prevent routine flaring and methane leakage. Failure to adapt to the changing regulatory environment could have consequences beyond environmental compliance, potentially affecting Ghana’s ability to attract investment and participate competitively in international energy markets. The situation underscores the urgency of addressing methane emissions to safeguard Ghana’s economic prospects and ensure sustainable energy development.”
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Source: MyJoyOnline
