The Ghana National Petroleum Corporation (GNPC) denies responsibility for the country’s recent electricity supply problems and has announced plans to repay its debt to the West African Gas Pipeline Company Limited (WAPCO) and prevent disruptions to Ghana’s gas supply. He said it has been further strengthened. some occasions.
In a statement issued on October 30, 2023, GNPC clarified that it is a counterparty to a gas transportation agreement (GTA) with WAPCO for gas transportation to power plants and invoices GNPC directly. did.
GNPC said the conclusion that GNPC was responsible for non-payment of money to WAPCO, which led to reductions in gas supplies and, as a result, electricity supply problems, was “inaccurate and misleading”.
Below is the full statement from GNPC.
Statement: GNPC is not responsible for power supply issues
Accra, October 30, 2023: The Ghana National Petroleum Corporation (GNPC) has drawn attention to false comments made by some misinformed persons claiming to be energy analysts regarding the electricity supply issue last Thursday. ing. They alleged that GNPC, its board of directors and CEO were responsible for failing to pay their debts to West Africa Gas Pipeline Company Limited (WAPCO).
This information is not accurate and GNPC clarifies:
WAPCO invoices GNPC directly, as GNPC is the counterparty to the Gas Transportation Agreement (GTA) with WAPCO for the transportation of gas to the power plants, pursuant to the requirements of the OCTP Gas Sales Agreement (GSA).
The gas is transported to an independent power producer (IPPS) to generate electricity, which is then distributed as electricity to consumers by the ECG. Ultimately, the funds received by ECG after the sale of electricity will be utilized for direct or indirect payments to all electricity service providers downstream in the value chain, including WAPCO.
Traditionally, ECG pays gas transportation bills through a cash waterfall mechanism (CWM). However, the funds that GNPC received from his ECG were not enough for him to pay WAPCO’s bills, especially recently. Between July and October this year, GNPC explored all avenues to force ECG to honor overdue payments, to no avail, as documented in numerous letters to ECG and the Minister of Energy. , demanding payment and highlighting the potential impact of energy reductions. Gas transportation services.
As there was no response, a timely letter dated October 16, 2023 was sent to the Minister of Energy, requesting urgent intervention in the matter to avert power supply problems.
Later, while the issue remained unresolved, WAPCO cut back on gas transportation services, leading to power supply issues.
GNPC is not responsible for the power supply problems that occurred in the country on Thursday, but rather has stepped up multiple times to prevent gas supply disruptions by bearing the cost of gas transportation at the expense of its core business. should be kept in mind.
GNPC CEO and senior management have actively engaged with WAPCO on several occasions this year and successfully negotiated a viable payment arrangement that will prevent reductions in gas transportation services.
Therefore, it is inaccurate and misleading for anyone to conclude that GNPC was responsible for the non-payment of money to WAPCO which led to the curtailment of gas supplies and caused the unfortunate power supply problems.
Issuer:
Ghana National Petroleum Corporation Corporate Affairs Department
Petroleum House, Harbor Road, PMB, Tema.