It has emerged that the government’s inability to reach an agreement with the West African Gas Pipeline Authority (WAGPA), concerning charges for the transfer of gas from the Western part of the country to the East, has partly contributed to the erratic power supply, popularly referred to as ‘dumsor’.
[contextly_sidebar id=”apWe7FyrlU4pkUxX6t5HgXZa6XRMIXzF”]This was announced by the Minister for Energy, John Peter Amewu, despite an earlier denial that the challenges were due to technical challenges and not financial issues.
The Minister at a press conference on Monday, said while the West African Gas Pipeline Company Limited (WAPCO), expected US$3.2 per MMBtu as tariff, the government was willing and ready to pay US$1 per MMBtu.
He further explained that the West African Gas Pipeline Authority (WAGPA), the regulator for the company, however issued a new tariff of US$1.7 per MMBTu which the government finds more favourable and is awaiting approval by the committee of ministers of West African Gas Pipeline (WAGP).
“Our major challenge has been the incomplete reverse flow project to flow gas from the West to the East. We had to fast-track it through a by-pass which has been completed, but not connected to the West African Gas Pipeline yet. This is because WAGPA has not come out with the tariff for the reverse flow, and WAPCO will not sign the Gas Transportation Agreement (GTA) without a tariff.
WAPCO wants to charge US $3.2 MMBtu, whilst we want to pay US$1 MMBtu.”
According to the Energy Minister, Ghana had enough gas produced in the Western Region, and it has completed the project to get the gas to Tema to fuel the country’s gas-powered plants, but cannot connect it to the West African Gas Pipeline until the necessary financials are completed with the West African Gas Pipeline Authority.
“[The new amount] will now be approved by the Committee of Ministers of WAGP on 30th November, 2018, that is, coming Friday, to pave the way for the signing of the GTA, to allow for the connection of the by-pass.”
“This will ensure 60mmscfd can flow from the West to the East until the reverse flow project is completed.”
Mr. Amewu, however, stressed that the challenges of Ghana’s power supply and the power cuts citizens suffered are now under control.
“The Ministry of Energy wants to assure the public that the situation now is very much under control.”
Amewu redefines ‘dumsor’, says NDC’s era was ‘dum kuraa’
John Peter Amewu, who had earlier debunked assertions that Ghana is returning to the era of erratic power supply, retreated with an explanation that the situation now is not as bad as what Ghanaians experienced under the NDC for nearly three years.
Mr. Amewu said, “When you put off the lights, we say dumsor; isn’t it? In the past three years, it was ‘dum kuraa’ [completely off]. We’re not in an era of ‘dum kuraa’. The lights may go off as we are witnessing, but I can assure you that, that long period that we envisaged that our opponents think that they want to capitalize on, that period will never come because we’re managing the system. We have people here to manage the system, and we can give assurance to Ghanaians that the situation now is very much under control” he said.
‘Dumsor is coming back’ – Adam Mutawakilu
A Minority member on Parliament’s Mines and Energy Committee, Adams Mutawakilu earlier this month indicated that the country was reversing to the challenging times of erratic power supply popularly known as ‘dumsor’.
Adams Mutawakilu said the country has enough resources to provide adequate power, and the irregular power situation is a clear indication of the government’s mismanagement of these resources, hence the situation.
His comments came at a time when the Ghana Grid Company Limited, has attributed the blackouts to a drop in gas pressure at Aboadze, which caused a reduction in power generation from the West.
But Mutawakilu insists that the challenges experienced current was due to liquidity issues despite attempts by government officials to deny the situation.
“The issue is that, there are serious liquidity challenges in the power sector irrespective the many assurances by the government. This government is misapplying the ESLA bond that John Mahama introduced to leverage the energy sector.”
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By: Jonas Nyabor | citinewsroom.com | Ghana