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Nigeria threatens to cut Gas Supply over VRA’s $82m Debt

vraFollowing the increase in volume of gas supply from the West African Gas Pipeline Company and the resumption of gas supply from Atuabo as well as the steady rise in water level of the Akosombo dam, there has been tremendous improvement in power supply, effectively, minimizing the ongoing power rationing, The aL-hAJJ can confirm.

Information available to this paper indicate that suburbs in the nation’s capital, Accra and other populous cities in the country known to be harshly affected by the debilitating power outages, known in the local parlance as dumsor, have been experiencing uninterrupted or improved power supply in the last few weeks.

Residents of Ofankor, Pokuase, Achimota, Tesano, Alajo,Avenor, Amasaman, Sowutuom, Kwashieman, Lapaz, Tesano, Mallam, Gbawe, Weija, Kaneshie, Santa Maria, Darkuman, Odokor, Awoshi, Ablekuma, Laterbiokorshie, Mamprobi, Dansoman, Chokor, James Town, Teshie, Tantra Hill, Dome, Nugua, La and other communities in Accra affected by dumsor have all in one way or the other confirmed to improvement in power supply in their locality.

This development, The aL-hAJJ has gathered from managers of the nation’s power sector, is as a result of resumption of gas supply from Atuabo to the Aboadze thermal enclave, increase in volumes of gas from Nigeria and the rise in water levels at Akosombo which is said to have reduced the deficit that had occasioned the excruciating power rationing.
Sources at the Volta River authority revealed to this paper that as a result of the improved flow of gas from Nigeria and Atuabo; most of its units were running on gas.

TICO has been reported to have added 115MW of power from its steam turbine and generator to the national grid. This brings TICO’s contribution to the national grid to about 330MW.

Meanwhile, commercial and business analyst of WAPCo, TesaAyennor, last week confirmed to the media that the company increased its gas supply capacity to Ghana to between 102 million standard cubic feet and 147 million standard cubic feet early this month, which is far more that the 120m standard cubic feet stated in the contract.

He said the increased volumes came handy to cover up the shortfall from the Atuabo processing plant which was about 100mmscf.

According to the Manager of the Kpone Thermal plant, Francis Agbanyo, the development will stabilize the power sector.

“We are now getting substantial supply of gas from Nigeria about 150 million standard cubic feet a day which is even more than the contractual amount of 120 million standard cubic feet. We also know that the Atuabo Gas has come back so if all these things are happening, it is going to have a massive impact on power generation what it means is that Atuabo gas can supply all the units in Aboadze and they will all be running on gas reliably. And then what it also mean is that all the units currently in Tema can also run on gas,” he said.

The Kpone Thermal Power Plant (KTPP) is expected to produce 220 megawatts out of a total of 257 megawatts of power expected to be added to the national grid between October and November this year.

The increase in supplies come at a time technicians of the FPSO-Kwame Nkrumah continue to fix the challenges associated with the transportation of gas from the Jubilee Fields to the Atuabo Gas Processing Plant.

A faulty compressor on the FPSO Kwame Nkrumah resulted in the halting of gas export to the onshore processing plant for power generation, a situation that VRA to switch its plants to the use of light crude.

Meanwhile, sources at VRA have also confirmed to The aL-hAJJthat water level in the Akosombo has gradually started rising and in no time some of the VRA’s turbines that were shut down as a result of the drop of the water level would be turned on.

The VRA last month shutdown one more turbines at the Akosombo dam to avoid damage to the plant as the water levels keep going down.

As a result of the shutdown, Akosombo Dam which has a total generation capacity of 1020MW was generating 558 MW.
But sources say that if the rate at which level is rising is maintained, then VRA will turn on some of its turbines in order cover up the shortfall in power generation and further improve power supply.

But, despite these positive developments in the power sector, there are fears that the country could return to the dumsor regime any time soon due to VRA’s $82 million indebtedness to WAPCo.

The Daily Graphic yesterday reported that WAPCo has notified VRA it may cut gas supply to Ghana.

The paper quoted a source at WAPCo saying “We cannot finance our operation through the little capitalization when we have money locked up in Ghana. If Ghana wants the gas, they should pay us to enable us to run effectively. If they don’t pay substantially, we will give VRA our product, according to the money they give us. If you owe me GH¢10 and you pay 50Gp, I will give you 50Gp worth of what you want, it’s as simple as that.”

Ghana has for some time now being experiencing power outages as a result of which the Power Minister, Dr Kwabena Donkor, has promised to resign if the debilitating problem does not end by end of this year.

– Source : http://www.ghana-news.adomonline.com/business/2015/August-11th/nigeria-threatens-to-cut-gas-supply-over-vras-82m-debt.php#sthash.qtQ0rIpW.dpuf

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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