Ghana’s Petroleum Revenue Management Law: A Social Contract for Good Economic Governance and Possible Challenges
This chapter discusses natural gas as a source for downstream industrial development. The various activities that natural gas can cover are presented and a schematic diagram of products from natural gas is presented to provide a visual orientation of the multiplicity of benefits that can potentially accrue to a nation with gas as a natural resource. The concept of gas project finance is investigated where the need for a major petrochemical project to pass several tests in order to secure project financing is emphasized. The most important aspects of the project development are the pricing and arrangements between the gas supplier and the project company. With respect to the gas supply, the potential financiers can review all terms of the proposed gas contract and comment on any aspects that they consider inimical to the interest of the project. The current state of global financial markets, project financing deals would be particularly challenging in the present environment.