Politics

Gov’t Coughs US$6 Million To WAPCo After Suspending Gas Transportation

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The decision by West African Gas Pipeline Company (WAPCo) to suspend gas transportation from Aboadze Regulating and Metering Station in the Western Region to Tema Regulating and Metering Station for redistribution to power generators in Tema has compelled the government to cough over US$6 million to settle part of the US$13 million debt owed the company.

WAPCo receives gas from Atuabo Gas Processing Plant operated by Ghana National Gas Company and transport it to Tema to power generators.

“As of today, we have received 50% of the invoices that are due. What they had to pay at the end of June for them to continue to enjoy the services they have paid.

“Currently, there is an outstanding debt that we have got a payment plan.

“We have seen the instruction for payment so we expect that a week today, they will be able to pay. If that happens next week, we will resume full services,” a source at WAPCo told energynewsafrica.com.

Last Saturday, July 1, 2023, WAPCo suspended gas transportation from Aboadze to Tema over a US$13 million debt owed to them for the transportation of natural gas.

According to the source, WAPCo resumed gas transportation later on Saturday after assurance from government to settle the debt.

The source said they activated the protocols in the gas transportation agreement because “the current debt got to a certain level, and we felt we can’t allow it to grow anymore.”

The source said the gas flow is in two parts, namely firm volume and interruptible volume.

The source said upon several warnings which did not yield positive results, the company suspended the interruptible volume on June 1 and went ahead to cut the firm volume on July 1.

“From the 1st of June, because of the debt level, we suspended the interruptible volume because of the debt level, and we were flowing only the firm volume. We had told them that if by the end of June, they have not paid up the current bill or reduced their debt, we will shut down. So, we exercised our right on July 1, 2023. So last Saturday, we shut down the gas transportation,” the source said.

This development resulted in power outages in some parts of the country.

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