Ghana Buys Time With US$10m To Nigeria Gas

Gas pipeline

 Government of Ghana's payment of US$10 million to the West African Gas Pipeline Company (WAPCo)  buys Ghana some time to conclude negotiations to curtail the cut in gas supply from Nigeria. WAPCo threatened to cut gas supply to Ghana on Friday over 180 million dollar debt owed NGAs, but it suspended
the decision after the deadline for payment elapsed last night. Harriet Wereko Brobbey, Corporate Affairs Director for the West Africa Gas Pipeline Company, said her outfit is still transporting natural gas to Ghana. Sources in 
Nigeria has it that Ghana has committed first payment of close to 10 million dollars to NGAs with some conditions, this decision not to cut supply of gas to the country is temporary. WAPCO which is a major player will be engaged in series of meetings next week by government and NGAs to agree on the payment plan.  NGAs is owned by the Nigeria National Petroleum Corporation and other multinational oil companies including Chevron and Shell. The partners are expected to meet over the weekend to structure out a payment plan which will be agreed on by other partners. Though the negotiation was confidential, information indicate that some of the key issues discussed included the fact that Ghana is one of the biggest customers of WAPCO for gas supply because of its strategic role in the West African sub region in the supply of electricity. Some players in the power sector are also pointing to Ghana’s power barges that will rely on residual fuel which is cheaper than the gas from Nigeria. This will have an effect on Ghana’s demand for natural gas from Nigeria.