The government of Ghana has paid over US$6 million to the West African Gas Pipeline Company (WAPCo) in order to settle part of the US$13 million debt owed the company.
This payment was made after WAPCo suspended gas supply to Ghana Gas Company, which affected power generators in the eastern enclave of Tema.
WAPCo, reportedly had received 50 percent of the invoices that were due for payment.
This payment was necessary for the government to continue enjoying its services. The outstanding debt is now being addressed through a payment plan, and it is expected that the full amount will be paid within a shortest possible time.
Last week, WAPCo made the decision to suspend gas supply to Ghana Gas due to the US$13 million debt owed to them for the supply of natural gas. The company felt that it could no longer allow the debt to grow any further, and therefore activated the protocols in the gas transportation agreement.
The gas supply from WAPCo to Ghana Gas is divided into two parts: firm volume and interruptible volume. Due to the increasing debt, WAPCo suspended the interruptible volume on June 1, 2023. After warning Ghana Gas about the debt, WAPCo proceeded to cut the firm volume on July 1, 2023. This decision led to power outages in some parts of the country.
However, with the recent payment of US$6 million by the government, WAPCo has now resumed flowing gas to Ghana Gas. This gas will be supplied to power generators, ensuring a steady electricity supply.
The government’s payment towards the debt is seen as a positive step towards resolving the issue and preventing further disruptions in the energy sector.
By Vincent Kubi