WAPCO – Business Week Ghana https://businessweekghana.com Accurate Relevant Revealing Wed, 30 Apr 2025 12:50:44 +0000 en-US hourly 1 https://businessweekghana.com/wp-content/uploads/2024/06/236876004_233005352166311_6788365974847027779_n-150x150.jpeg WAPCO – Business Week Ghana https://businessweekghana.com 32 32 WAPCo urges regional collaboration to address gas supply deficit https://businessweekghana.com/wapco-urges-regional-collaboration-to-address-gas-supply-deficit/ Wed, 30 Apr 2025 12:50:44 +0000 https://businessweekghana.com/?p=63774 The West African Gas Pipeline Company (WAPCo) is calling for stronger collaboration among Ghana and its neighboring countries to resolve persistent payment challenges that are contributing to a regional gas supply deficit.

According to WAPCo, tackling these financial bottlenecks is critical to ensuring a reliable minimum base load to support power generation and industrial activity across West Africa.

Speaking at the West African Gas Pipeline Committee of Ministers meeting in Accra, WAPCo Managing Director Michelle Burkett stressed the urgency of coordinated action to stabilize gas flow and drive energy security in the sub-region.

While we have seen vast improvement in the gas deliveries from Nigeria, gaps still remain to meet the demand in the region.

“We appeal for coordinated efforts to secure a minimum sustained base load and strengthen financial stability through collaboration,” she said.

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WAPCO plans feasibility studies for gas supply expansion https://businessweekghana.com/wapco-plans-feasibility-studies-for-gas-supply-expansion/ Tue, 25 Feb 2025 17:43:00 +0000 https://businessweekghana.com/?p=62545 The West Africa Gas Pipeline Company Limited (WAPCO) has announced plans to conduct feasibility studies this year to explore expanding its gas supply to additional areas.

This announcement follows ongoing maintenance work, which has resulted in the temporary suspension of the reverse gas flow from Takoradi to Tema and led to the shutdown of key facilities in Lomé, Togo, and Cotonou, Benin. The maintenance is expected to be completed by March 2, 2025, after which gas flow will resume.

During a press briefing, Ing. Benoni Owusu Ayeh, the Operations and Maintenance Superintendent for Western Operations at WAPCO, emphasized that the company is evaluating the financial investment required to achieve this goal.

We need standby compressors, so additional investment is necessary, but it depends on demand. This will influence further investment in these facilities, which require upgrades to meet full capacity. We will begin the study this year, “he noted.

Meanwhile, the company has announced that 70% of its ongoing maintenance works have been completed, bringing the company closer to resuming gas supply to Tema.

The comprehensive cleaning and inspection exercise is a key regulatory requirement and aligns with industry best practices to ensure the safe and efficient operation of the West African Gas Pipeline (WAGP). The project encompasses the entire pipeline infrastructure, from Itoki in Ogun State, Nigeria to Takoradi in Western Region, Ghana.

The cleaning exercise is in two phases. The first phase, completed in December 2024, involved cleaning and inspecting the onshore section of the pipeline within Nigeria.

The second phase scheduled to run from February 3 to March 2, 2025, will focus on the offshore section of the WAGP, stretching from Badagry, Lagos State, Nigeria to Takoradi, Western Region, Ghana.

WAPCO is required to conduct these inspections every five years, as part of efforts to maintain the integrity of the WAGP and ensure its continued safe and reliable operation across the West African region.

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GRIDCo vows to prevent ‘dumsor’ during WAPCo maintenance https://businessweekghana.com/gridco-vows-to-prevent-dumsor-during-wapco-maintenance/ Thu, 06 Feb 2025 12:58:12 +0000 https://businessweekghana.com/?p=62142 The Ghana Grid Company Ltd (GRIDCo) has assured the public of measures to prevent power outages, commonly known as “dumsor,” during the rescheduled maintenance by the West Africa Gas Pipeline Company (WAPCo). The maintenance, which began on February 5, is expected to conclude on March 2, 2025.

In a joint statement, GRIDCo and the Electricity Company of Ghana Ltd (ECG) confirmed that, under the leadership of the Ministry of Energy and Green Transition, substantial volumes of liquid fuel have been secured to power key plants in Tema as an alternative energy source.

Speaking to Citi Business News, Nana Amoasi VII, Executive Director of the Institute of Energy Security (IES), commended the government’s proactive steps in securing liquid fuel reserves to sustain electricity supply.

The postponement of the maintenance programme gives the government ample time to build up liquid fuel reserves. If the exercise proceeds and national gas flow to power plants in the Eastern enclave is disrupted, there will be enough liquid fuel to keep the plants operational,” he explained.

Amoasi further highlighted that plants like Asogli and the entire Tema power plant will remain unaffected, ensuring no loss in generation capacity.

“This will allow the government to proceed with confidence, avoiding criticism, and ensuring consumers enjoy a steady and reliable power supply,” he added.

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Dumsor: WAPCo delays pipeline maintenance to prevent power crisis https://businessweekghana.com/dumsor-wapco-delays-pipeline-maintenance-to-prevent-power-crisis/ Fri, 10 Jan 2025 17:16:18 +0000 https://businessweekghana.com/?p=61641 The West African Gas Pipeline Company (WAPCo) has agreed to postpone its planned pipeline maintenance by two weeks, averting an imminent power crisis in Ghana.

This decision comes after intense negotiations led by a technical committee established by Chief of Staff Julius Debrah to tackle the looming energy challenge.

The maintenance, initially scheduled to commence this week, was flagged by the Ghana Grid Company (GRIDCo) as a significant threat to the country’s electricity supply.

GRIDCo warned that ongoing fuel shortages for thermal plants, combined with the disruption in gas supply from the pipeline, would severely cripple Ghana’s power generation capacity.

At a high-level meeting involving WAPCo representatives, GRIDCo officials, and the technical committee, the stakeholders deliberated on the potential impact of the maintenance on the national grid. Concerns were raised about the possible reintroduction of power outages, which could disrupt businesses and households across the country.

Following the discussions, WAPCo agreed to delay the maintenance to allow authorities more time to secure alternative fuel supplies and stabilize electricity generation.

Background on the Maintenance and Fuel Crisis

WAPCo’s pipeline plays a vital role in transporting natural gas from Nigeria to Ghana, Togo, and Benin. The scheduled maintenance is crucial for the pipeline’s safety and efficiency.

However, Ghana’s reliance on gas for powering its thermal plants means any disruption can have severe implications for electricity supply.

Additionally, the country is currently grappling with a fuel supply deficit, which has further strained the power sector. Efforts are underway to import additional light crude oil and liquefied natural gas (LNG) to mitigate the impact of the gas supply shortfall.

The government and relevant stakeholders are working to expedite fuel imports and finalize contingency plans to maintain power supply during the eventual maintenance period.

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WAPCo gas pipeline maintenance triggers power supply disruptions https://businessweekghana.com/wapco-gas-pipeline-maintenance-triggers-power-supply-disruptions/ Thu, 12 Dec 2024 14:08:19 +0000 https://businessweekghana.com/?p=61273 Ghana’s power sector entities, GRIDCo and ECG, have jointly addressed the public regarding disruptions to power supply caused by ongoing maintenance activities on the West African Gas Pipeline (WAGP).

This follows the West African Gas Pipeline Company Limited (WAPCo) announcing the cleaning and inspection of a 56-kilometre onshore pipeline section between Itoki and Badagry in Nigeria—a crucial part of the West African Gas Pipeline—which has been progressing steadily. However, the process revealed unexpected complications.

During the cleaning exercise, a larger-than-expected volume of liquids and debris was received at the Lagos Beach Compressor Station,” WAPCo stated.

These findings caused operational disturbances, necessitating a temporary shutdown of Ghana’s Tema Regulatory & Metering Station.

The company emphasised that the shutdown was essential for safety and further investigations.

The impact of WAPCo’s operational challenges has extended to Ghana’s power supply.

According to a joint release from the Ghana Grid Company (GRIDCo) and the Electricity Company of Ghana (ECG), the shutdown of the Tema station has forced the temporary closure of some thermal power plants in Tema, leading to a shortfall in electricity generation.

“This has caused a shortfall in power supply, requiring some limited load management in parts of the country,” the statement read.

GRIDCo and ECG expressed confidence in WAPCo’s efforts to resolve the issue despite the challenges.

“We are optimistic that WAPCo will soon resolve the challenge and restore gas supply,” they said.

Once gas supply resumes, power will be fully restored to affected areas.

We express our gratitude to our key stakeholders for their patience during this process and apologize for any inconvenience caused,” the company stated.

The situation underscores the interconnected nature of gas supply and electricity generation in Ghana and across West Africa.

The maintenance of the WAGP, while essential for long-term reliability, has highlighted the importance of robust contingency plans for such critical infrastructure.

WAPCo is currently conducting investigations and addressing the operational issues that arose during the cleaning process.

Both GRIDCo and ECG assured customers that they are monitoring the situation closely and will provide updates as necessary.

In the meantime, affected customers are urged to conserve power where possible and stay informed through official updates from the power providers.

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WAPCo to commence planned pipeline cleaning and inspection on November 25 https://businessweekghana.com/wapco-to-commence-planned-pipeline-cleaning-and-inspection-on-november-25/ Mon, 25 Nov 2024 01:57:26 +0000 https://businessweekghana.com/?p=60962 The West African Gas Pipeline Company Limited (WAPCo), has announced the beginning of its planned cleaning and inspection of the West African Gas Pipeline (WAGP) on Monday, November 25, 2024,

WAPCo in a statement said the comprehensive cleaning and inspection exercise is a key maintenance and regulatory requirement to ensure the safe and efficient operation of the pipeline.

It added that the exercise aligns with industry best practices, and will cover the entire pipeline infrastructure, from Itoki in Ogun State in Nigeria to Takoradi in the Western Region of Ghana.

Tourism packages

It is part of WAPCo’s ongoing efforts to maintain the integrity of the WAGP and ensure its continued safe and reliable operation across the West African region.

“The project will be in two phases. The first phase which begins on Monday 25 November, involves the cleaning and inspection of the onshore section of the pipeline which is located in Nigeria. This first phase is scheduled to last for 10 days.

WAPCo has engaged relevant stakeholders ahead of this exercise and does not anticipate any major disruption to gas transportation services to customers.”

According to WAPCo, the second phase of the project is scheduled to begin in January 2025, stressing that it will temporarily suspend the reverse flow transportation of gas from the Western Region of Ghana to Tema within that period.

Tourism packages

“This involves the cleaning and inspection of the main section of the pipeline, which is offshore, stretching from Badagry, in the Lagos State, Nigeria to Takoradi, in the Western Region of Ghana. During the offshore cleaning and inspection period in 2025, WAPCo will temporarily suspend reverse flow transportation of gas from the Western Region of Ghana to Tema, Ghana.

This will also necessitate the shutdown of key facilities in Tema, Ghana; Lomé, Togo; and Cotonou, Benin. Also, WAPCo will replace subsea valves located at these strategic locations to enhance operational safety.”

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WAPCo cuts supply over $13m mounting debt https://businessweekghana.com/wapco-cuts-supply-over-13m-mounting-debt/ Wed, 05 Jul 2023 14:23:18 +0000 https://businessweekghana.com/?p=17504 The West African Gas Pipeline Company Limited (WAPCo) has suspensed natural gas transportation services to the Ghana National Petroleum Corporation (GNPC),deep throat sources have confirmed to the Graphic Business.

This follows the inability of GNPC to settle its indebtedness to WAPCo to the tune of over a $13.99 million.

The decision, which took effect from July 1, comes after a series of negotiations between the two entities over debt arrears, although the GNPC paid $1.246 million to WAPCo last week.

WAPCo, responsible for transporting natural gas from Nigeria to several countries in West Africa, in a letter dated June 27 to the GNPC, cited the payment arrears as the primary reason for the interruption.

This means that GNPC will not be allowed to flow any gas, including the 60,000 MMBtu/ day firm transportation services mainly from Takoradi to Tema.

The sudden halt in gas supply to GNPC has raised alarm bells among industry experts, as the country’s energy generational mix relies on natural gas and thermal for electricity production, with the GNPC playing a crucial role in ensuring a steady supply to power plants across the country.

The suspension, therefore, threatens to disrupt the nation’s energy stability and potentially lead to power shortages.

The interruption in gas supply has also sparked concerns among citizens, who fear a return to the frequent power outages experienced in the past. However, experts are hopeful that a resolution can be reached promptly, given the significance of the issue for both WAPCo and GNPC.

As negotiations continue, Ghana remains on high alert for potential energy shortages.

Power production

Last week, the government assured citizens that contingency plans are in place to ensure minimal disruption to power supply, including increased reliance on other energy sources such as hydroelectricity and thermal generation after independent power producers threatened to shut their operations over debt arrears.

So far the Electricity Company of Ghana and the IPPs have agreed on a settlement that covers 30 percent of debt arrears.

A source familiar with the situation told the GRAPHIC BUSINESS that the situation highlights the importance of diversifying the country’s energy mix and reducing reliance on a single source.

“It also serves as a reminder of the need for effective communication and collaboration between stakeholders to ensure a stable and sustainable energy sector,” the source said.

The source added that both WAPCo and GNPC are expected to engage in intense negotiations in the coming days to find a resolution and restore gas supply to GNPC.

“The outcome of these talks will undoubtedly have significant implications for Ghana’s energy stability and the overall well-being of its citizens,” the source added.

Transportation

WAPCo, in June 2019 completed commissioning and performance testing of the Takoradi phase of the Takoradi – Tema Interconnection Project (TTIP) and began transporting natural gas from the west (Takoradi) to the east (Tema) at the request of customers.

The project involved the expansion of WAPCo facilities at Takoradi and Tema as well as the tie-in of the West African Gas Pipeline (WAGP) system at Takoradi to the Ghana National Gas Company’s facility/line. This was achieved by the execution of various commercial agreements by the parties.

The TTIP is a collaboration between WAPCo, the Ghanaian Energy Ministry, the Ghana National Petroleum Corporation, the Ghana National Gas Company and Eni Ghana.

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