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Business News of Friday, 29 March 2013

Source: Citi FM

West African States unhappy with WAPCo

The members of the Committee of Ministers of the West African Gas Pipeline: Benin, Ghana, Nigeria and Togo have expressed dissatisfaction with the inability of West African Gas Pipeline Company (WAPCo) to firmly assure the consumer states the exact date of the resumption of gas supply.

This was revealed at a meeting of Committee of Ministers of West African Gas Pipeline Authority held in Accra Friday, December 21, 2012.

WAGPCo, the operator of the West African Gas Pipeline in August declared a force majeure on its gas operation as a result of damaged pipelines in Lome, Togo.

The pipelines were shut in August after the Togolese Navy informed the company of a cross fire that ensued between the Navy and a suspected vessel that was seen around the anchorage of the Lome waters in August this year.

Ghana is yet to see the supply of gas despite assurances from the company it would resume full operation of gas supply to its clients before end of the year.

Below is the Communiqué issued by the Committee of Ministers of the West African Gas Pipeline: Benin, Ghana, Nigeria and Togo

“We, the members of the Committee of Ministers of the West African Gas Pipeline: Benin, Ghana, Nigeria and Togo assembled in Accra, Ghana on Friday 21st December, 2012, for an emergency meeting to discuss the current state of repairs of the West African Gas Pipeline,

Recalling that: The West African Gas Pipeline was damaged on the 28th of August, 2012

The gas pipeline was subsequently shut down by WAPCo and gas supplies to Togo, Ghana and Benin curtailed

On the 15th October, 2012, WAPCo completed the repairs to the pipeline and commenced technical commissioning

On the 30th October, 2012, during the dewatering process, a multiple fatality occurred at the Takoradi R&M station leading to the suspension of the commissioning

The WAPCo Board of Directors recommended that the rest of the commissioning works be outsourced to expert companies to complete

The contract is expected to be awarded in January 2013

And noting the negative impact of the interruption of gas supplies for power generation and its resultant effect on the economies of Ghana , Togo and Benin,

Have: Expressed dissatisfaction with the inability of WAPCO to firmly assure the consumer states the exact date of the resumption of gas supply

recognized the importance of ensuring the integrity of work particularly on the quality and safety processes however are worried about the schedule that has been proposed for the completion of the rehabilitation work

Considered the economic and social cost of the continuous disruption of gas supply on the economies of the three consuming countries,

Therefore Request

that the tentative schedule completion date of end of March 2013 proposed by WAPCo should be shortened to end of February, 2013

That a firm schedule for conclusion of rehabilitation works should be communicated to member countries by the end of December 2012.

The Committee of Ministers apologises to the population of the member- states for the inconvenience caused as a result of this unfortunate situation.

The CoM members from Benin, Nigeria and Togo congratulate Ghana for successful and peaceful election

They express their profound gratitude to the people and Government of Ghana, particularly His Excellency the President of Ghana and his Vice for facilitating their passage to Ghana and the warm hospitality accorded the Members and their delegation during their stay in Accra.

They also express their sincere thanks to the Ministry of Energy of Ghana for hosting the meeting.

SIGNED HON. JOE OTENG-ADJEI (DR) AG. MINISTER FOR PETROLEUM RESOURCES, GHANA HON.DAVID IGE (DR) MINISTER OF ENERGY,NIGERIA

HON. BARTHELEMY DAHOGA KASSA MINISTER, BENIN

HON. TAIROU BABIEGUE MINISTER,TOGO