Deep-throat sources at the VRA admitted its indebtedness to the WAPCo reveals the monies were locked up with the Asogli Power Plant, the Tema Oil Refinery (TOR), the Electricity Company of Ghana (ECG)
The current energy crisis affecting the country may intensify in the coming days as the West African Gas Pipeline may halt supply of Gas to the Volta River Authority.
The provision of electricity in Ghana is largely dependent on the supply of gas from the West African Gas Pipeline such that any shortfall in Gas supply to the country plunges Ghanaians into load shedding.
News reaching Pulse Business reveal that the West African Gas Pipline Company (WAGPCO) is set to have a crunch meeting this afternoon to take a final decision on whether or not to withhold supply of gas to the country.
This is because the Volta River Authority owes WAGPCO in excess of 82.2 million dollars in unpaid bills. The West African Gas Pipeline says this is having an adverse effect on its operations, and is threating to cut supply of Gas to the country.
The Sources at the WAPCo said the company was unable to meet its overhead and other operational costs due to the indebtedness of the VRA.
“We cannot finance our operation through the little capitalisation when we have money locked up in Ghana. If Ghana wants the gas, they should pay us to enable us to run effectively,” the source said.
Asked what the implication could be should Ghana or the VRA fail to pay the debt in one tranche, the highly placed source said “if they don’t pay substantially, we will give VRA our product, according to the money they give us. If you owe me GH¢10 and you pay 50Gp, I will give you 50Gp worth of what you want, it’s as simple as that”
Deep-throat sources at the VRA admitted its indebtedness to the WAPCo reveals the monies were locked up with the Asogli Power Plant, the Tema Oil Refinery (TOR), the Electricity Company of Ghana (ECG) and other independent power producers that were yet to settle their debt to the VRA.
At Asogli Power, another source confirmed its indebtedness to the VRA but also pointed at the ECG, saying that until the ECG settled its indebtedness, it would be difficult to pay the VRA. The ECG offered no comment but wanted to wait until it was able to mobilise the funds from government agencies and corporate and domestic clients.
The 678-kilometre West African Gas Pipeline (WAGPCO) links the existing Escravos-Lagos pipeline at the Nigeria Gas Company’s Itoki Natural Gas Export Terminal in Nigeria and proceeds to a beachhead in Lagos.
From there it moves offshore to Aboadze, with gas delivery laterals from the main line extending to Cotonou (Benin), Lome (Togo) and Tema.
WAGP transports purified natural gas free of heavy hydrocarbons, liquids and water, ideally suited as fuel for power plants and industrial applications.