We’re not responsible for recent power supply challenges – GNPC


We’re not responsible for recent power supply challenges – GNPC

The West African Gas Pipeline Company Limited (WAPCO) has received its debts from the Ghana National Petroleum Corporation (GNPC), which has also take

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The West African Gas Pipeline Company Limited (WAPCO) has received its debts from the Ghana National Petroleum Corporation (GNPC), which has also taken action to prevent gas supply interruptions on multiple occasions. The GNPC has thus, denied any involvement in the recent power supply issues in the nation.

The Gas delivery Agreement (GTA) between GNPC and WAPCO for the delivery of gas to power plants was made clear in a statement released by GNPC on October 30, 2023, stating that GNPC receives direct billing from WAPCO.

Any findings that GNPC was accountable for the non-payment of funds to WAPCO, which resulted in the reduction of gas supply and the problems with the electricity supply, were deemed by GNPC to be “incorrect and misleading.”

Below is the full statement from the GNPC

Statement: GNPC not responsible for power supply challenges

Accra, 30th October 2023: The attention of the Ghana National Petroleum Corporation (GNPC) has been drawn to false comments put out by some misinformed individuals depicting themselves as energy analysts regarding last Thursday’s power supply challenges. They alleged that GNPC, its Board and CEO are to blame for failing to pay debts owed to West Africa Gas Pipeline Company Limited (WAPCO).

This information is not accurate, and GNPC clarifies as follows:
GNPC is counterparty to the Gas Transportation Agreement (GTA) with WAPCO for the transportation of gas to power plants, as per the OCTP Gas Sales Agreements (GSA) requirements therefore, WAPCO directly invoices GNPC.

The gas is transported to the Independent Power Producers (IPPS) to generate power that ECG distributes to consumers as electricity. Ultimately, monies received by ECG after the sale of electricity is utilized to pay, either directly or indirectly, all the electricity service providers downstream of the value chain, including WAPCO.

Traditionally, ECG pays for gas transportation invoices through the Cash Waterfall Mechanism (CWM). However, funds received by GNPC from ECG have not been sufficient to pay for the WAPCO invoices, especially in recent times. Between July and October this year, GNPC has explored every avenue possible to get ECG to honor the overdue payments to no avail this is documented in numerous letters to ECG and the Minister for Energy, requesting for payments, and highlighting the potential consequences of curtailment of gas transportation services.

Following no response, a timely letter dated 16th October 2023 was sent to the Minister of Energy seeking his urgent intervention on this matter to avoid power supply challenges.

Thereupon, as the issue remained unresolved, WAPCO curtailed gas transportation services leading to the power supply challenges.

It should be noted that GNPC is not responsible for the power supply challenges that occurred in the country on Thursday but has rather stepped up on many occasions to prevent gas supply interruptions by paying for gas transportation at the expense of its core operations.

The GNPC CEO and senior management have proactively engaged WAPCO several times this year to successfully negotiate feasible payment arrangements that have prevented the curtailment of gas transportation services.

It is, therefore, incorrect and misleading for anyone to conclude that GNPC was responsible for the non-payment of monies to WAPCO leading to the curtailment of gas supply, resulting in the unfortunate power supply challenges.


Issued By:
The Corporate Affairs Department, Ghana National Petroleum Corporation,
Petroleum House, Harbour Road, PMB, Tema.


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