In the midst of recent power supply challenges that have left many seeking answers, the Ghana National Petroleum Corporation (GNPC) finds itself at the center of a storm of misinformation.
Allegations, propagated by some self-proclaimed energy analysts, wrongly point fingers at GNPC, its Board, and CEO, citing unpaid debts to the West Africa Gas Pipeline Company Limited (WAPCo) as the cause.
These claims, as independently verified, cannot be more further from the truth as the detailed explanation put forward by GNPC proves adequate to setting the records straight.
It is a fact, contrary to the misconceptions, that GNPC, operating as a counterparty to the Gas Transportation Agreement (GTA) with WAPCo, adheres to the OCTP Gas Sales Agreements (GSA) requirements. An arrangement that has seen WAPCo directly invoice the Corporation for gas transportation to power plants, ultimately contributing to the electricity distributed by the Electricity Company of Ghana (ECG) to consumers.
What remains an undeniable source of the current challenge is the financial complexities of the traditional Cash Waterfall Mechanism (CWM) employed by ECG to settle gas transportation invoices. Unfortunately, recent funds received by GNPC from ECG as stated in their press release in November last year have proven inadequate to cover WAPCO’s invoices.
GNPC, led by the CEO, Opoku-Ahweneeh Danquah, has actively sought resolutions, dispatching numerous letters to both ECG and the Minister for Energy between July and October 2023. These letters meticulously outline the potential consequences of gas transportation service curtailment.
In one such attempt to forestall the foregoing, GNPC urgently sent a letter dated 16th October 2023 to the Minister of Energy, seeking intervention. Regrettably, the power supply challenges escalated as WAPCo curtailed gas transportation services.
It is therefore disingenuous for any individual or entity to lay blame at the doorstep of that one organization that has put in tremendous efforts to curtail the power supply challenges that have affected the nation.
It is an indisputable fact that GNPC has, indeed, and once again, contrary to the falsehood being aggressively reported, has consistently prioritized uninterrupted gas supply, even diverting resources from its core operations to meet gas transportation costs.
Throughout last year, O-A Danquah and his senior management have actively engaged WAPCO, successfully negotiating feasible payment arrangements to prevent service curtailments. Any claim that the Corporation is responsible for the non-payment leading to gas supply cuts and subsequent power challenges is categorically rejected by the Corporation. GNPC has always maintained its commitment to transparent and proactive communication, demonstrating its dedication to addressing and resolving challenges impacting the energy sector.
Assessing the dynamics of the issues, it is clear that GNPC’s unwavering commitment to ensuring a stable energy supply for the nation is being maliciously fabricated. Don’t blame GNPC – let’s seek the truth amidst the complexities of the energy landscape.
