No sabotage on gas pipelines

-WAPco exposes Mahama 'dumsor' lies

Finally, the West African Gas Pipeline Company has reacted to claims by the Mahama-led National Democratic Congress government that the suspension of transmission of gas to the nation from N-Gas was due to 'sabotage' on the company's pipes caused by activities of militants.

President Mahama recently told the whole world that the ongoing 'dumsor', which is having serious adverse repercussions on businesses and households, was the result of 'sabotage' on the lines of WAPco, which transmits gas from Nigeria-Gas to the nation.

But, the Corporate Affairs Director for WAPCo, Harriet Wereko-Brobbey, yesterday told the nation the claim by the president was not the case, insisting that the cut in supply was due to nothing but the government's failure to meet its financial obligations to the company.
"On the issue of pipelines, I think we all hear about pipeline sabotage and so on, but the point I am making is that WAPCo's issue is on gas transportation on the WAP-P. The WAP-P is in good condition. We are in the position to transport and we have suspended transportation because of payment," Harriet Wereko Brobbey stated categorically on Citi FM.
She further dismissed claims by President Mahama's government that it had paid some $30 million as part payment of the close to $150 million debts owed the company.
Emmanuel Armah Kofi Buah, Petroleum Minister, had claimed, Monday, that the Mahama government had paid $30 million out of its indebtedness to the gas transportation company. He explained the settlement formed part of a payment plan government had agreed on with N-Gas.
But, according to Harriet Wereko-Brobbey, WAPco is yet to receive any information from N-Gas regarding any such payment.
"On the issue of payments, WAPCo has not received any payment, but then I don't know if the Petroleum Minister is referring to payments made to the supplier, that is N-Gas. We are transporters and we get paid by the supplier whose gas we transport. So it may be that payment has been made to the supplier and we are yet to receive payment for the transportation, but we haven't heard anything from even N-Gas on any payment," she explained yesterday.
WAPCo, in June, suspended gas transportation to Ghana over unpaid bills by the government. A letter announcing the termination of service, dated June 16, 2016, put the total debt owed the company at US$101.736 million as at June 1, 2016.
According to the letter, signed by Walter Perez, the Managing Director, the debt represents "unpaid overdue invoices for transportation services."
Titled "NOTICE OF SUSPENSION OF GAS TRANSMISSION UNDER THE TAKORADI GTA", the letter reads in part: "We write in respect of the captioned matter to inform N-Gas that pursuant to clause 11 of the Takoradi GTA, WAPCo hereby exercises its right to suspend transportation services effective 0800hrs GMT, Friday, June 17, 2016, for non-payment of the sum of US$101.736 million being the unpaid overdue invoices for transportation services as at June 1, 2016."
The letter set out in clear terms, conditions that must be met before the company would resume service to the nation. "For the avoidance of doubt, our resumption of transportation services to Volta River Authority would be contingent upon the following: 1. immediate payment of sum of US$25.177 million being unpaid overdue invoices from November 2015 to end April 2016. 2. N-Gas ensuring the securitization of payment for future Transportation Services or Prepayment for Transportation services. 3. Agreement of a bankable and acceptable payment plan for the 'legacy debt' of US$76.559 million (being due and unpaid invoices to WAPCo from August 2014 to end June 2015)."

Available information now indicates that that the Volta River Authority owes N-gas around $180 million, while N-Gas in turn owes WAPCo $104 million.

Harriet Wereko-Brobbey, however, disclosed yesterday that WAPCo was engaging N-Gas to facilitate the resumption of the transportation of gas to Ghana.

"The issue is that we are in a difficult situation and so we have suspended our transportation services to the supplier; that is N-Gas. So we indicated to N-Gas that they should kindly pay us money so we can transport because we have been transporting on their behalf and there has not been any payment. So for us, we expect payment so we resume transportation," she added.