We Won’t Compromise To Your Rate – Energy Minister To WAPCO

The Minister for Energy, Mr. Peter Amewu, has cautioned the West African Petroleum Company (WAPCo) against assuming that there is a Captive market for them in the country.

According to him, no rate charged by the Petroleum Company would be accepted wholeheartedly.

He made this statement at the opening of the West African Gas Pipeline Project (WAGP) Committee of Ministers Meeting on Friday.

“It is important to underscore that we live in a world of competition. Cash is fungible and will move where it won’t take hard knocks. If the delivered gas price is prohibitive, compared to other alternative fuels, gas will become a hard sell,” he said.

WAPCO, according to the Minister, made a pronouncement of about $3.37 tariff, which government sees as not being favorable.

Bargaining for a one dollar per MMBtu, Peter Amewu said government has decided to listen to other competing countries.

“Government made it clear to WAGPA during the TP3 consultative process that should Ghana consider building an alternative onshore pipeline, it would be a greater competitor to the WAPCo,” he stressed.

He therefore urged WAPCO not to create a valid business case for Ghana to build an onshore pipeline from Takoradi to Tema.

Meanwhile, the Managing Director of WAPCo, Mr. Walter Perez, has said the new tariff methodology was being developed to accommodate multiple entry and exit points along the pipeline, including the reverse flow from Takoradi to Tema.

He therefore appealed to CoM (Committee of Ministers) to help broker a win-win solution, which will allow them to move ahead with the commercial framework needed to actualize the reverse flow and bypass projects.

The meeting was attended by energy ministers of the four countries, ECOWAS representatives, the West Africa Pipeline Authority, and other stakeholders.

The issue of tariffs for gas from the West African Gas Pipeline took center stage at the meeting.

By: Emmanuel Yeboah Britwum