Ghana’s power sector risks an imminent shutdown, if Ghana Gas fails to renew a $2.5 million operational insurance by next week.
Member of Parliament’s Energy Committee, William Owureku Aidoo, told Joy News, managers of the gas processing facility have informed the Chief of Staff about the possible shutdown of the plant but action is yet to be taken.
“They [Ghana Gas] have also written incidentally to the Chief of Staff that come end of this month, 31st of December, their insurance policy runs and without the insurance policy in force, the whole Atuabo processing plant would have to shutdown. They cannot operate without an insurance cover for the processing plant,” the MP explained.
The state-owned Ghana Gas Company is in the current predicament because lean gas supplies to the Volta River Authority (VRA) to generate some 220MW of power have not been paid for.
Ghana Gas sources say out of over $190 million debt owed to Ghana Gas by VRA, just a little over $3 million has been paid by the power producer.
Recently installed AMERI power plant could also be affected since the Atuabo gas processing plant provides a cheaper alternative to importing gas from overseas.
Ghana’s next alternative for gas to produce power – if Ghana Gas shuts down – would be the West Africa Gas Processing Company (WAPCo) – however due to Ghana’s debt experience with WAPCo this is not certain.