The multimillion-dollar insurance for the Atuabo Gas Processing Plant operated by the Ghana National Gas Company (Ghana Gas) has been renewed.
With this renewal, the plant will continue to supply reliable, efficient and cost-effective lean gas to the Volta River Authority (VRA).
Ghana Gas has been supplying about 115 million standard cubic feet of gas daily to the Aboadze thermal enclave, helping the VRA to generate more than 630 megawatts of electricity onto the national grid.
The fears of a shutdown over the expiration of the $2.5 million insurance cover for the billion dollar gas plant went viral after some members of the Select Committee on Mines and Energy of Parliament insisted that the plant would be shut down by Christmas Day over the inability of the operators to renew the insurance.
The Corporate Communications Manager of Ghana Gas, Mr Alfred Ogbamey confirmed last Sunday that the operating insurance cover had been renewed and the company continued to supply “lean gas to the VRA” over the holidays.
He said the operating insurance cover was renewed after the VRA honoured the payment of part of its debt to enable Ghana Gas to carry out the renewal.
Mr Ogbamey said the report on the operations of Ghana Gas to Parliament stating the date of expiry of the insurance cover was just part of its duty to the people of Ghana through their representatives, who requested for the briefing.
“As a public company, Ghana Gas is aware of the principal–agent role to make decisions on behalf of the principal — the people of Ghana — and report to them. It is, however, unfair when part of its report to the principal through its representatives on the need for renewal of its insurance is singled out and misreported.”
He said the fixation on misreporting the issues while the two companies were in discussions to resolve the situation was unfortunate.
According to him, the main issues the nation must address are the cycle of indebtedness that has existed on the energy generation, transmission and distribution fronts all these years.
“How we address these challenges between Ghana Gas, N-Gas, VRA, Independent Power Producers, GRIDCO, ECG and customers in terms of the tariffs and revenue distribution is key to resolving this decade-plus challenge we’ve consistently nibbled at as a nation,” he emphasised.
Source : Graphic/ http://www.energymin.gov.gh/?p=4435